If a Monthly Cash Budget Is Prepared Properly There Will

question 71

True/False

If a monthly cash budget is prepared properly there will never be a cash deficiency at the end of any month.

---

Definitions:

Amortization Period

The length of time it takes to pay off a loan or mortgage in full with regular payments that cover both principal and interest.

Compounded Monthly

A method of calculating interest where the interest earned each month is added to the principal, so the balance doesn't merely grow; it grows at an increasing rate.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Loan

Money that is borrowed, typically from a bank or financial institution, that is expected to be paid back with interest.