Chapter 8: Budgets and Financial Records

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

True

A net worth statement will be useful when you apple for a loan or credit.

False

A payee is a person who promises to pay the debt of another person.

warranty

A ________ or guarantee is a statement assuring quality and performance of a product or service.

spreadsheet

A computer program that organizes data in columns and rows and can perform calculations using the data is called a....

True

A court will not require a person to perform an agreed-upon act if it is illegal.

False

A document that lists the valuable things you own, along with their purchase prices and approximate current values, is called an expense record.

contract

A legally enforceable agreement between two or more people is called an ______.

maker

A person who creates and signs the promissory note and agrees to pay it on a certain date is called the...

False

A set of goals for spending, saving, and investing the money you receive is called a budget.

budget

A spending and saving plan based on your expected income and expenses is called ______.

False

An express contract is legally binding, but and implied contract is not

net worth

Assets minus liabilities equals _______.

True

Before you prepare a budget, it is a good idea to keep track of your income and expenses for a month or two.

True

If a person signs a contract because he or she felt threatened to do so, a genuine agreement does not exist.

expenses + savings = earnings + borrowing

In a balanced budget, ...

liabilities

Money or debts you own to others are called _____.

10

Most experts recommend saving ____ percent of your disposable income each pay period.

True

Never sign a contract until you have read and understood it.

True

One big advantage of computerized record keeping is that information can be updated quickly and easily.

False

Only people with considerable wealth need to create a personal record keeping system.

consideration

Something of value exchanged for something else of value is called ________.

3

The IRS has the legal right to audit your tax returns and supporting records for ___ years from the date of filing.

False

The competence or legal ability of a person to enter a contract is called consideration.

True

The two elements to consider in budgeting and planning are your income and your expenses.

negotiable

The word _____ means legally collectible.

True

When assets are greater than liabilities, you are said to be solvent.

making a counteroffer

When one person makes an offer and another person changes it, the second person is....

disposable income

When preparing a budget, you need to focus mostly on your...

a contract involving the sale of a farmhouse

Which of the following contracts must be signed to be legally binding?

grocery bill

Which of the following is a variable expense?

a checking account

Which of the following would be considered an asset?

False

You should always create a monthly budget - weekly or biweekly budgets tend to be inaccurate.

disposable

Your ______ income is the money you have left to spend or save after taxes and other required deductions are taken.

Fixed

______ expenses are costs that do not change from month to month.

Variable

_________ expenses are costs that vary in amount and type, depending on the choices you make.

database

a computer program tha sorts data for easy search and retrieval

spreadsheet

a computer program that organizes data in columns and rows

contract

a legally enforceable agreement

co-signer

a person who agrees to pay the debt of another person

notarized

a process that verifies the signature of a person who signs a document

financial plan

a set of goals for spending, saving, and investing money

budget

a spending and savings plan

warranty

a statement assuring quality and performance of a product or service

negotiable

an instrument that is legally collectable

counteroffer

changing an original offer to make a new offer

variable expenses

costs that change in amount and type, based on your choices

fixed expenses

costs that do not change from month to month

liabilities

debts you owe to others

assets

items of value that you own

disposable income

money you have left to spend each month

consideration

something of value exchanged for something else of value

net worth

the difference between assets and liabilities


Kaugnay na mga set ng pag-aaral

Figuras de la historia medieval y moderno, Año 2

View Set

Commercial Banks and other Financial Intermediaries Part 1

View Set

Assignment 12 - Quiz 3: Business Concerns - Deregulation and Bankruptcy

View Set

Life Insurance - Chapter 4: Premium, Proceeds and Beneficiaries

View Set

BA 324H -- Exam One (Guffey 1-6)

View Set