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Related Flashcards
Cards In This Set
| Front | Back |
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The type of software used to create a budget
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Excel
|
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Items for which you must spend money
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Expenses
|
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Money you earn
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Income
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The formula/equation for a budget.
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Income - Expenses = Surplus/Deficit
|
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What is a surplus?
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When Income is greater than Expenses
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What is a deficit?
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When Income is less than Expenses
|
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What is the purpose of a variance?
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To help with budgeting; it tells us if our budgeted amounts are more or less than our actual amounts
|
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If your annual salary is $24,000, what is your monthly salary?
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$2,000
|
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Which are the following are variable expenses?
- rent - utilites - car payment - groceries - entertainment - car insurance |
Utilities
Groceries Entertainment |
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What is the difference between gross income and net income?
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Gross income is before taxes and other deductions
Net income is after taxes and other deductions |
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What do you need to know in order to create a budget?
|
Sources of Income
Souces of Expenses |
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Do we treat savings as a source of income or as an expense?
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Expense
|
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What is the recommended maximum amount of your income that should be spent on housing?
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30%
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What are the 4 largest expenses the average household has?
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Rent/Mortgage
Transportation Food Insurance |
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Which are the following are fixed expenses?
- rent - utilites - car payment - groceries - entertainment - car insurance - phone bill - cable bill |
Rent
Car Payment Car Insurance Phone Bill Cable Bill |
