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Budgeting flashcards
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- What is meant by “Fixed expense” in this lesson?Fixed and variable expenses
- A fixed expense stays unchanged over the stated period under its terms.
- What is meant by “Variable expense” in this lesson?Fixed and variable expenses
- A variable expense changes with use, prices, or decisions.
- What is meant by “Periodic expense” in this lesson?Fixed and variable expenses
- A periodic expense occurs at intervals other than every budget period.
- What is meant by “Essential expense” in this lesson?Fixed and variable expenses
- An essential expense supports a necessary function in the described circumstances.
- What is meant by “Discretionary expense” in this lesson?Fixed and variable expenses
- A discretionary expense can be adjusted or deferred more readily in the described context.
- What is meant by “Expense estimate” in this lesson?Fixed and variable expenses
- An estimate uses records and assumptions to anticipate future costs.
- What is meant by “Budget” in this lesson?Building a spending plan
- A budget plans income and allocations over a specified period.
- What is meant by “Cash flow” in this lesson?Building a spending plan
- Cash flow tracks the timing and amount of money entering and leaving.
- What is meant by “Budget surplus” in this lesson?Building a spending plan
- A surplus occurs when planned income exceeds planned outflows.
- What is meant by “Budget shortfall” in this lesson?Building a spending plan
- A shortfall occurs when planned outflows exceed available income.
- What is meant by “Savings allocation” in this lesson?Building a spending plan
- A savings allocation reserves funds for future uses.
- What is meant by “Budget tracking” in this lesson?Building a spending plan
- Tracking compares actual amounts with the plan.
- What is meant by “Contingency” in this lesson?Adjusting for unexpected costs
- A contingency is a provision for possible unexpected needs.
- What is meant by “Emergency versus irregular” in this lesson?Adjusting for unexpected costs
- An irregular predictable bill differs from an unplanned urgent expense.
- What is meant by “Budget adjustment” in this lesson?Adjusting for unexpected costs
- An adjustment revises allocations when conditions change.
- What is meant by “Income interruption” in this lesson?Adjusting for unexpected costs
- An interruption reduces or delays expected earnings.
- What is meant by “Sinking fund” in this lesson?Adjusting for unexpected costs
- A sinking fund sets aside money gradually for a known future expense.
- What is meant by “Stress test” in this lesson?Adjusting for unexpected costs
- A financial stress test checks a plan under less favorable assumptions.