Management and Organizational Studies 2277A/B Chapter Notes - Chapter 3: Cash Flow Statement, Income Statement, Financial Statement
31 Mar 2018
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Document Summary
A financial statement that measures a person"s income and expenses. Create it by recording how you received income over a given period of time and how you used cash for expenses. Periodically compare actual income and expenses to the forecasted. Stick to a cash only budget for some of your expense categories. Usually for ones that are hardest to control. Taking money out of your bank account before you have a chance to spend it. A summary of your assets, your liabilities, and your net worth (assets - liabilities) Liquid assets - financial assets that can be easily converted into cash without a loss in value. Household assets - items normally owned by a household. Tend to make up a larger portion of assets. Need to assess their value when making balance sheet - the market value is what you would receive if you sold it today. Stocks - certificated representing partial ownership in a firm.
