Chapter 3- Planning Flashcards Preview

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Flashcards in Chapter 3- Planning Deck (10)
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1
Q

Factors that affect cash flows

A
  1. Stage in career path
  2. Type of job
  3. Number of income earners
2
Q

Factors affecting expenses

A

1 size of family

  1. Age
  2. Personal consumption behaviour
3
Q

Things to consider when budgeting

A

Anticipating cash shortages, assessing accuracy of budget, forecasting cash flows, budgeting with a bi weekly pay period, having an annual budget, always improve budget,

4
Q

Assets

A

Can be classified as liquid, household , and investments

5
Q

Stocks

A

Certificates representing partial ownership of a firm

6
Q

Bonds

A

A long term debt securities issues by government agencies of corporations that are collateralized by assets

7
Q

Mutual funds

A

Investment companies that sell shares to individuals and invest the proceeds in an overall portfolio of investment instruments such as bonds or stocks

8
Q

Current liabilities

A

Personal debts that will be paid in the near future

9
Q

Liquidity

A

Your access to funds to cover short term cash deficiencies

10
Q

Cash flow statement

A

Step one in budgeting

It also measures a persons income and expenses