ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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true
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false
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Either A or B
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None of the above
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Detailed explanation-1: -A personal net worth statement shows a person’s cash inflows and cash outflows for a period of time. With every buying decision, there is a tradeoff and an opportunity cost. If you spend less money on an item than you planned to spend, this is an unfavorable variance in your budget analysis.
Detailed explanation-2: -Your wealth can be measured using the personal cash flow statement. Savings should be included in your list of cash inflows when creating the personal cash flow statement. The amount you owed on your credit card is an example of a liability.
Detailed explanation-3: -A personal cash flow statement presents income and outflows of cash for a given time period, such as a month. Take-home pay is a person’s earnings after deductions for taxes and other items. Medical expenses, clothing, and telephone are examples of fixed expenses.
Detailed explanation-4: -A cash flow statement tells you how much cash is entering and leaving your business in a given period.