What Aspect of Financial Planning Might You Discuss with a Friend

question 23

Multiple Choice

What aspect of financial planning might you discuss with a friend who buys fancy coffee drinks twice a day, visits the mall at least once a week for recreational shopping, and prefers impulse buying to carefully researched purchasing?

• A) Just do it.
• B) Nothing happens without a plan.
• C) Mind games and your money
• D) Waste not, want not - smart spending matters

Evaluate the effects of cash transactions on the accounting equation and financial statements.

Identify and differentiate between key accounts within financial statements.

Analyze the implications of owner's investments and withdrawals on the business's financial health.

Understand the basic characteristics and differences between the forms of business entities.

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Definitions:

Social Security

A government program that provides financial assistance to people with an inadequate or no income.

Medicare Taxes

Federal taxes collected from earnings to fund the Medicare program, which provides healthcare benefits to senior citizens.

Medicare Withholding

A portion of an employee's wages that is deducted and sent to the government to contribute to the Medicare program.

Social Security Withholding

A mandatory process where employers deduct part of an employee's salary to contribute towards the United States Social Security program, aimed at providing benefits for retirees, disabled workers, and survivors.