16.1 personal financial statements Flashcards Preview

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Flashcards in 16.1 personal financial statements Deck (43):
1

assets - liabilites = _______

net worth (owner's equity)

2

savings accounts and a home are examples of

  • liabilities
  • assets
  • net worth
  • cash outflow

assets

3

the amount of money that could be claimed if all assets were sold for cash and all debts were paid off

net worth

4

What is the first part of a cash flow statement?

cash inflows / income

5

a listing of a person or family's ____ is the second items on a balance sheet

liabilities

6

if you set ____, make wise decisions, buy wisely, and live within your income, you will be a successful money manager

if you set goal, make wise decisions, buy wisely, and live within your income, you will be a successful money manager

7

a family has $189,000 in assets and $87,000 in debts.  What is their net worth?

$102,000

8

money management involves getting the most for your money through _____ planning

money management involves getting the most for your money through careful planning

9

what are some examples of cash outflows?

  • rent
  • mortgage payment
  • food
  • clothing
  • utilities
  • telephone
  • transportation
  • personal care
  • recreation/entertainment

10

_____ ahead and deciding what is important will help you have money for things you enjoy

planning ahead and deciding what is important will help you have money for things you enjoy

11

give some examples of cash inflows

  • net income / take home pay
  • interest income
  • rental income

12

if you spent less than you had in income then.....

you have an increase in your net worth, this extra money most likely will be kept in your savings account for the future

13

what do cash outflows represent?

money paid out by a person or family during a specific period, normally a month

14

What reports what a person or family owns as well as owes?

balance sheet

15

calculate

assets:  ______

liabilities:  $5,600

net worth: $67,800

assets = $73,400

67800+5600=73400

16

how much time does a cash flow statement cover?

usually a month

17

According to the Bureau of the Census, what are the main assets in US households?

  • motor vehicles
  • homes
  • savings accounts
  • US savings bond
  • certificates of deposit
  • mutual funds
  • stocks
  • corporate bonds
  • retirement accounts

18

keeping track of how much is ____ on living expenses will help you plan and control your spending

keeping track of how much is spent on living expenses will help you plan and control your spending

19

calculate:

assets:      $7,000

liabilities:  $1,800

net worth: _______

$5,200

 

7000-1800=5200

20

if you spent more than you had in income then....

you either had to use some of your savings or credit to pay the additional expenses

21

amounts owed to others

liabilities

22

What are some examples of liabilities found on a personal balance sheet?

  • home mortgage
  • education loan
  • credit card balance
  • car loans
  • personal loans

23

reports net wages and other income along with spending for a period

cash flow statement

24

if you learn to manage your money well, you will be able to ____ what you really want

if you learn to manage your money well, you will be able to buy what you really want

25

What are some characteristics of a wise money manager?

  • set goals
  • make wise decisions
  • buy wisely
  • live within your income

26

listed on the second part of a cash flow statement

cash outflow

27

What are some examples of assets on a personal balance sheet?

  • house
  • automobile
  • household items and furniture
  • personal computer
  • jewelry
  • investments (stocks, bonds, etc)
  • clothing
  • rare coins
  • savings account
  • checking account

28

The current value of all ____ of an individual or family is the first thing stated on a balance sheet

assets

29

items of value

personal assets

30

how often are balance sheets prepared?

monthly or quarterly (every 3 months)

31

what is another name for cash outflows?

expenditures

32

a balance sheet is a helpful way to measure financial ____

strength

33

cash inflows - ______ = net cash flow

cash inflows - cash outflows = net cash flow

aka

total income - total spending = net cash flow

34

the money you have available to spend as a result of working or from other income, such as interest earned on your savings

cash inflows

35

calculate

assets:    $26,000

liabilities:  _____

net worth:  $19,000

liabilites - $7,000

 

26000-19000=7000

36

the amount of a paycheck after taxes and other payroll deductions

net pay / take-home pay

37

What are some deductions taken out of your paycheck?

  • retirement contributions (401k)
  • charges for health benefits/insurance
  • local, state and federal taxes

38

your _____ pay is the amount you actually have available to spend

take-home pay / net pay

39

a payment for rent represents

  • a cash inflow
  • a cash outflow
  • a liability
  • an asset

a cash outflow

40

What two financial statements are used in money management?

the balance sheet

the cash flow statement

41

a record of assets and liabilities at a point in time

balance sheet

42

amounts spent for food, clothing, transportation, and other living costs

cash outflows

43

the day to day financial activities associated with using limited income to satisfy your unlimited needs and wants

money mangement