Changes in Income, Values, and Family Situation Make It Necessary

question 19

Multiple Choice

Changes in income, values, and family situation make it necessary to:

• A) evaluate and revise your actions.
• B) implement the financial plan.
• C) develop financial goals.
• D) analyze your current personal and financial situation.
• E) create a financial plan of action.

---

Definitions:

Accounts Receivable

The balance of money due to a firm for goods or services delivered or used but not yet paid for by customers.

Accounts Payable

Liabilities of a business that are owed to creditors for goods and services purchased on credit.

Times Interest Earned

A metric used to measure a company's ability to meet its debt obligations, calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.

Tax Rate

The percentage at which an individual or corporation is taxed, determining the portion of income or profits that must be paid to the government.