In Managing Your Household Financial Resources, What Should You Know

question 13

Multiple Choice

In managing your household financial resources, what should you know in order to determine how much you're really earning and spending?

• A) Where your money for day-to-day expenses is coming from and where it is going.
• B) Where your longer-term goal implementation is coming from and where it is going.
• C) Your cash flows, by systematically tracking your income and expenses.
• D) All of these answer choices are correct.

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Definitions:

Standard Cost

A predetermined cost of manufacturing, servicing, or marketing goods, used as a benchmark to measure performance.

External Financial Statement Reporting

The process of preparing and disclosing financial statements to external stakeholders, such as investors, creditors, and regulatory bodies, to provide insight into a company's financial health.

Generally Accepted Accounting Principles

A set of rules and standards for financial reporting that companies in the U.S. must adhere to.

Gross Profit

The financial gain made after deducting the cost of goods sold from total revenue.