Title: BUSINESS
1BUSINESS PERSONAL FINANCE
2DEFINITION
- Money management is the control of cash flow.
3Various sources of income
4Activities involved in managing money
- Set goals
- Make economic decisions
- Spend wisely
- Live within means
5Flexible 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.
6Types 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.
7Financial Status
- Cash flow statement
- Expenditure
8Expenditure
9Steps 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
10Types 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.
11Successful 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
12Definition
- Accounting consists of
- Planning
- Recording
- Analyzing and interpreting financial activities
13Classify 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.
14Capital
- 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
15Show 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)
16Use T accounts to analyze cash transactions
- Cash payments/purchase
- Cash receipts/sales
17Record simple business transactions
18Prepare a simple financial statement
- Balance sheet Income Statement
19Use technology to record business transactions
20Explore careers identified with accounting
1
- Record keepers
- Accounts clerk
- Bookkeepers
- Accountants
- CPAs
- CAs
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21Closure
- 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.