BUSINESS

1
BUSINESS PERSONAL FINANCE

• LEVEL 3M

2
DEFINITION

• Money management is the control of cash flow.

3
Various sources of income

• Wages
• Allowance
• Gifts

4
Activities involved in managing money

• Set goals
• Make economic decisions
• Spend wisely
• Live within means

5
Flexible Expenses

• Flexible Expenses that can be adjusted or
  eliminated, such as those for luxuries, as
  opposed to fixed expenses, such as rent or car
  payments.

6
Types of Expenses

• Fixed expenses do not depend on your consumption
  of a good or service. A fixed expense is a cost
  that does not change from period to period or
  that changes only very slightly. Fixed expenses
  are usually paid on a regular basis, such as week
  to week, month to month, quarter to quarter or
  year to year. Typical household fixed expenses
  are mortgage or rent payments, car payments, real
  estate taxes and insurance premiums.

7
Financial Status

• Cash flow statement
• Expenditure

8
Expenditure
9
Steps to develop a spending plan to satisfy goals.

• Budget allocation of funds
• Balance your budget
• Estimate your expenses
• Estimate your income
• Plan for savings
• Set goals for spending

10
Types of Budgets

• Start-up The amount of money needed to begin a
  company. It includes not only the money to buy
  needed goods, but also money to cover the initial
  expenses of the company.
• Operating-- a detailed outline of all estimated
  income and expenses during a given future period.
  
• Cash an estimation of cash payments and
  receipts during the next planning period.

11
Successful characteristics to creating a budget

• Utilize a spreadsheet or worksheet
• Estimate your income
• Estimate your flexible expenses
• Plan your savings
• Balance and adjust your budget

12
Definition

• Accounting consists of
• Planning
• Recording
• Analyzing and interpreting financial activities

13
Classify business items with value

• Assets Anything owned by an individual that has
  a cash value. This includes property, goods,
  savings or investments.
• Liabilities anything that is owed to someone
  else.

14
Capital

• assets available for use in the production of
  further assets
• wealth in the form of money or property owned by
  a person or business and human resources of
  economic value
• a seat of government

15
Show the relationship among assets, liabilities
and capital

• Accounting equation
• ( A L C)
• Analyze the affects of transactions on the
  accounting equation
• Assets Liabilities Capital
• (revenue expense)

16
Use T accounts to analyze cash transactions

• Cash payments/purchase
• Cash receipts/sales

17
Record simple business transactions

• Cash journal

18
Prepare a simple financial statement

• Balance sheet Income Statement

19
Use technology to record business transactions
20
Explore careers identified with accounting
1

• Record keepers
• Accounts clerk
• Bookkeepers
• Accountants
• CPAs
• CAs

4
6
5
3
2
21
Closure

• Write a paragraph indicating What did know before
  exploring this topic
• What did I want to know?
• What Have I learned?
• Add this to your portfolio.