によって FARAH DALILA ABDUL KARIM 3年前.
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FORMULA
importance:
VARIABLES
Expenses that can go up and down along with income. Ex increase in the traveling expenses as increase in traveling allowance (official duty).
Expenses that are paid and can be inflexible expenses. Ex: water bills, electricity bills.
Expenses that can be predicted. Buying foods, clothing
Can control especially in short run. Home maintenance, doctor’s bills, dentist's bills.
FIXED
Also known as sunk cost- cannot avoided.
Mortgage payments, car loan, insurance premium payments, rent.
Has little control in the short run
WHAT? Cash outflows.Needed to sustain a person’s life.
EX: The major income source of income for an individual will be salary or wages.Bonuses, interest and dividends, proceeds from sale of assets, child support, tax refunds, gifts
Cash inflow or sources of income.
Insolvent net worth is negativeinsufficient assets to cover financial obligations
Solventnet worth is positivesufficient assets to cover financial obligations
Ex: installment loans on cars (balance) , equipment, house or other property. 2) non-current portion of liabilities without specific repayment schedules. Ex: mortgage loans.
Ex: utilities bills, payments for loans installments balance that are due within one year such as payments for personal loan or computer loan
Ex: residence, automobiles, jewelry, clothing, hand phone
Ex: preferred stocks, common stock, bonds, mutual funds and ASB
Ex: cash on hand, current account, savings account and checking account