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Personal Finance
UCA Personal Finance Institute-Chapter 2 Vocabulary
Question | Answer |
---|---|
Personal cash flow statement | financial statement that measures a person's cash inflows and cash outflows |
net cash flows | cash inflows minus cash ouflows |
budget | A cash flow statement that is based on forecasted cash flows for a future period |
personal balance sheet | a summary of your assets (what you own), your liabilities (what you owe), and your net worth (assets minus liabilities) |
liquid assets | financial assets that can be easily sold without a loss in value |
household assets | items normally owned by a household, such as a home, car and furniture |
bonds | certificates issued by borrowers to raise funds |
stocks | certificates representing particial ownership of a firm |
mutual funds | investment companies that sell shares to individuals and invest the proceeds in investment instruments such as bonds or stocks |
real estate | rental property and land |
rental property | housing or commercial property that is rented out to others |
current liabilities | debt that will be paid within a year |
long-term liabilities | debt that will be paid over a period longer than one year |