Exam 1 Study Guide - Income and Expense Statements Fair...

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Income and Expense Statements Fair market value What any given buyer will give any seller on any given day (Selling a car on Autotrader.com) Examples of fixed and variable expenses Fixed- Usually paid in the same amount each time period, often contractual Disposable and discretionary income • Loan payments • Insurance premiums • Rent payments Variable- Controllable expenses that usually occur in the short run • Food • Entertainment • Clothing • Household supplies Balance Sheet or Net Worth Statement Monetary (liquid)-Easily/readily converted to cash with no loss in market value or penalty, emergencies, saving, and payment of bills. Cash Checking Account Savings Account Tax Refund Due Money owed to you Tangible (physical)- Contributes to a particular quality of life that generally depreciates over time. House, Condo, Mobile Home Appliances Furniture Auto Jewels Tools Investment (capital)- provides additional income that generally appreciates over time Short-Term Liability-Less than one year to pay off Long Term Liability- More than one year to pay off Budget Financial Goal Statement States the Amount, by when, and for what. o I want to get $4,000 by October of 2010 so I can fly to Scotland
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Consumer Expenditure Survey Monitors consumer purchases Consumer Price Index Market basket of goods and services from CES
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This note was uploaded on 03/24/2010 for the course FCE 238 taught by Professor Boyce during the Spring '07 term at Michigan State University.

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Exam 1 Study Guide - Income and Expense Statements Fair...

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