MCS 2100 Chapter Notes - Chapter 2: Cash Flow Statement, Money Management, Cash Flow

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 2100
• Professor: May Aung

Document Summary

Chapter 2: money management strategy: financial statements and. A system for personal financial records: computers generating more paperwork than ever much relating to financial matters. Personal balance sheet: where are you now: personal balance sheet: a net worth statement, reports what you own and what you owe. Items of value (what you own) amounts owed (what you owe) = net worth (your wealth) Step 3: computing net worth: net worth: the difference between total assets and total liabilities (assets . Increasing the value of investments and other possessions. Your balance sheet: measure progress toward financial goals, goals achieved more rapidly if able to save and invest on a regular basis, global measure of your financial progress is the growth in your net worth. Rrsps investment accounts: loans should be arranged that the interest is tax deductible. Relationship between debt and net worth; 0. 5 is often the maximum acceptable limit, lower would be better.