What is your own record of all your transactions called?

What is your own record of all your transactions called?

Cash flow statement. Your own record of all your transactions. Check register.

What are non essential expenses called?

Discretionary expenses are often defined as nonessential spending. This means a business or household is still able to maintain itself even if all discretionary consumer spending stops. Meals at restaurants and entertainment costs are examples of discretionary expenses.

Why is it important to maintain a file of both paper and electronic financial records?

Why is it important to maintain a file of both paper and electronic financial records? The cash flow statement is reflective of what has already taken place, and a budget is a proactive plan of what will take place.

Which of the following is consequence of overdrawing your checking account?

Overdrawing too often (or keeping your balance negative for too long) can have its own consequences. Your bank can close your account and report you to a debit bureau, which may make it hard for you to get approved for an account in the future. (And you’ll still owe the bank your negative balance.)

Are groceries a fixed expense?

Grocery shopping is also a variable expense. Your utility bills may also be variable expenses because they may change from month to month. Variable expenses may be harder to cut back on than fixed expenses because they can affect your lifestyle.

What is one of the disadvantages of budgeting by using your bank statements?

According to the course materials, what is one of the disadvantages of budgeting by using your bank statements? You always have to sort expenses by category, banks and credit card companies will never do this for you.

How long can my account be negative?

If you decide you want to close your bank account while it’s negative, the bank could refuse and ask you to pay the balance first. But banks don’t keep negative accounts open indefinitely. If you overdraw an account too many times or let an account stay negative for too long, your bank will likely close the account.

What happens if your bank account goes negative and you never pay it?

What happens if your bank account goes negative and you never pay it? If you don’t pay off the negative amount, the bank will eventually cancel your account and report you to a credit bureau for keeping a negative balance account. You owe money to a bank, and that bank will want its money bank.

What is a fixed expense example?

Common examples of fixed costs include rental lease or mortgage payments, salaries, insurance, property taxes, interest expenses, depreciation, and potentially some utilities.