UNIT 1-PART 1- Introduction to Income Tax Planning Flashcards
1
Q
Money Management
A
- Money is a medium of exchange
- good money management mirrors 5 step financial planning process
2
Q
Personal Money Perceptions: Value of Money
A
- Money = security
- need to save money controls financial decisions
- OR money means freedom
3
Q
Personal Money Perceptions: Risk Tolerance
A
- Ppl afraid of risking future financial security
- OR others may be flamboyant
4
Q
Personal Money Perceptions: Credit
A
- some ppl think its a natural extension of personal bank account
- OR others refuse credit
5
Q
5 steps to Money Management
A
- Defining Money mgmt objectives
- Collect/analyze information
- Identify Money management Strategies
- Implement, Budget, cash mgmt
- Monitoring results
6
Q
Net worth
A
assets- liabilities
7
Q
Equity ratio
A
assets-liabilities/ assets
