Algebra with Finance Semester Study Guide 2023-2024

Front

Which of the following is an example of a fixed expense?

Back

Rent/mortgage is a fixed expense because it remains constant over time.

Front

What is the amount of money that comes in and goes out of your account?

Back

Cash flow refers to the total amount of money being transferred into and out of a business or individual.

Front

What is a reduction in the value of an asset with the passage of time due to wear and tear?

Back

Depreciation is the reduction in value of an asset over time.

Front

What is a tax assessed on real estate by the local government?

Back

Property tax is a tax based on the value of real estate.

Front

What is computed on principal only?

Back

Simple interest is calculated only on the principal amount.

Front

Define fixed expense.

Back

A fixed expense is a cost that does not change with the level of goods or services produced.

Front

What is cash flow?

Back

Cash flow is the net amount of cash being transferred into and out of a business.

Front

Explain depreciation in financial terms.

Back

Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life.

Front

What is property tax?

Back

Property tax is a tax based on the value of owned property, typically assessed by local governments.

Front

Define simple interest.

Back

Simple interest is calculated using the formula: I = PRT, where I is interest, P is principal, R is rate, and T is time.