What Aspect of Financial Planning Might You Discuss with a Friend

question 13

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,financial personality,and your money
• D)Waste not,want not-smart spending matters.

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Definitions:

Closing Entries

Entries recorded at the close of an accounting period for the purpose of moving balances from temporary to permanent accounts.

Capital Account

An account showing the net worth of a business at a specific point in time, including assets contributed by owners and profits.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and equity at a specific point in time.

Permanent Accounts

Accounts that carry their ending balances from one accounting period to the next, including assets, liabilities, and equity accounts.