COMMERCE 4FP3 Chapter 2: Money management strategy - Financial statements and budgeting
17 Jan 2019
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Document Summary
Money management: day-to-day financial activities necessary to manage current personal economic resources while working toward long-term financial security. Spending money on current living expenses reduces the amount you can use for saving and investing for long-term financial security. Federal tax laws indicate the length of time you should keep tax-related information to which they relate: audit will go back only 3 years, cra may request info from 6 years back. Identify strengths and weaknesses in your current financial situation: measure progress toward your financial goals, provide data for use in filing your income tax return or applying for credit. Personal balance sheet: a financial statement that reports what an individual or a family owns and owes: aka net worth statement or statement of financial position, process: Investment assets: funds set aside for long-term financial needs: determining amount of debt. Liabilities: amounts owed to others but do not include items not yet due, such as next month"s rent.
