Personal Finance - V0cab -SNA

What is the definition of 'Assets'?

• Assets are resources owned by a company that have economic value.

• Assets are liabilities that a company owes to others.

• Assets are the profits made by a company.

• Assets are the expenses incurred by a company.

'Bad debt' refers to:

• A type of debt that is unlikely to be collected

• A debt that is paid on time

• A debt that is secured by collateral

• A type of investment

Explain the term 'Bookkeeping'.

• The process of recording financial transactions

• A type of book used for keeping records

• A method of auditing financial statements

• A system for managing employees

A 'Budget' is:

• a financial plan for a defined period

• a type of investment

• a loan agreement

• a savings account

Cash flow is defined as:

• The total amount of money being transferred into and out of a business.

• The profit earned by a company in a fiscal year.

• The total revenue generated by a company.

• The net income of a company after taxes.

What is 'Cost comparison'?

• A method to evaluate the cost of different options

• A technique to increase costs

• A strategy to ignore costs

• A way to reduce costs

Explain 'Cost-benefit analysis'.

• Cost-benefit analysis is a process of evaluating the costs and benefits associated with a decision or project.

• Cost-benefit analysis is a method of calculating the total cost of a product.

• Cost-benefit analysis is a financial statement showing profit and loss.

• Cost-benefit analysis is a technique for budgeting expenses.

What are 'Expenses'?

• Costs incurred in the process of earning revenue

• Assets owned by a company

• Liabilities owed by a company

• Revenue generated from sales

What does 'Federal taxable wages' mean?

• The total amount of money earned by an employee that is subject to federal income tax.

• The total amount of money earned by an employee that is exempt from federal income tax.

• The total amount of money earned by an employee that is subject to state income tax.

• The total amount of money earned by an employee that is exempt from state income tax.

Who is a 'Financial advisor'?

• A person who provides financial guidance to clients

• A person who cooks meals

• A person who teaches yoga

• A person who repairs cars