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27 Cards in this Set
- Front
- Back
Rise in the general levels of prices...???
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Inflation
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The cost of money is called....??
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Interest
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What are the types of Financial goals?
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Short term- to be achieve within a year
Intermediate- time frame 1 to 5 years Long term- Beyond 5 years |
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What are on the 1st line of a balance sheet?
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Liquid assets- already cash or can be quickly converted
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what are some examples of illiquid?
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Real estate and collectibles
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The inability to pay debts when they are due is called??
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Insolvent
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What is current ratio?
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liquid assets/ current liabilities
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what is liquidity statements?
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Liquid assets/monthly expenses
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what is Debt payment ratio?
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monthly credit payments/ take-home pay
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what is savings ratio?
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amount saved each month/gross income
**** Should be at least 10%**** |
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What are liabilities???
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Amounts owed to others but do not include items not yet due, such as next months rent
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Actual inflow and outflow of cash during a giving period of time is called??
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Cash Flow
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What is a cash flow statement?
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a summary is cash reciepts and payments for a given period, such as a month or year
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The inflows of cash to an individual or household cash payments for living expenses and other items are the second component of the cash flow is called?
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Income
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what are variable exps?
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a flexible payment that charge from month to month
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what do investments assets consist of ???
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Money set-aside for long term
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A budget or spending plan is necessary to....
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-live within your income
-spend your money wisely -reach your financial emergencies -develop use financial mgmt habit |
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How you spend your time and money is called what?? it is also strongly influenced by your career, family and personal values
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Life style
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the budget process has how many steps and explain!!
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The budget process has 7 steps
1) Setting Financial Goals 2) estimating income 3) Budgeting an emergency funds and savings 4) Budgeting fixed expenses definite obligation 5) Budgeting variable expenses 6) Recording spending amounts 7) Reviewing spending and saving patterns -evaluate, reassess and revise your financial goals |
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A successful budget should be...??
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1) well- planned
2) realistic 3)Flexible 4) Clearly communicated |
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the transfer each payday, auto deposit, coins, pay-roll deduction is called???
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Saving techniques
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Common goals in tax planning include.....?
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-Knowing current tax laws
-maintiaining complete records - making financial decisions that can reduce your tax liability |
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what is the principal purpose of taxes?
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to finance government activities
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the imposed on specific government and services such as gas, cigarettes, alcohol, tires and air travel is called..??
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Excise tax
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what are the income tax fundamentals?
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1) computing taxable income
2) calculating the amt of tax owed 3) Comparing this amt with income tax payments withheld or made during the year |
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what does AGI stand for?
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Adjusted Gross Income
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What is FICA?
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A law that requires a worker's pay to withheld for social security. It stands for Federal Insurance Contribution Act.
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