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Things needed for survival
Needs
Things people desire for reasons beyond survival
Wants
Wants allow people to enjoy life more. T or F
T
Most people have enough resources to meet all their needs and wants. T or F
F
A __________________ lists your cash inflows and outflows for a period of time
personal cash flow statement
money or items of value
assets
debt
liabilities
How many steps are in the Decision-Making Process?
6
A spending and saving plan based on expected income and expenses.
budget
A personal net worth statement lists your _____________ and ____________ for a period of time.
income and expenses
All assets, or items of value, increase in value over time. T or F
False
Financial choices you make today will affect your finances and your wealth tomorrow and throughout your future. F or F
True
A budget is based on estimated cash inflows and outflows. T or F
True
Items for which you must spend money are called
Expenses
The amount you budgeted to spend on food for June was $500. The amount you actually spent was $1,300, resulting in a... a. $45 unfavorable variance b. $55 favorable variance c. $45 favorable variance d. both a & b
c.
The amount of income you planned for June was $1,500. The amount you actually received was $1,300, resulting in a... a. $200 favorable variance b. $200 unfavorable variance c. $100 favorable variance d. $300 unfavorable variance
b. $200 unfavorable variance
