1. Understanding the income and expense statement\ \ Preparing an income and expense statement helps in answering the question, Where does all my money go? This statement takes and subtracts to determine an individuals or a familys cash surplus or deficit situation.\ If the equation results in a positive number, a exists. If the equation results in a negative number, a exists.\ Check the correct category for each of the following items. Note: for purposes of this exercise, consider cash in and out for this couple regardless of whether the item is for personal or business use.\ Cash In/Income\ Cash Out/Expense\ Sales commission \ \ \ Property taxes \ \ \ Internet access fees \ \ \ Once expenses have been identified, they can be categorized as either fixed expenses or variable expenses.\ For example, your mortgage would be considered a expense, because . Conversely, grocery bills would be considered , because the actual amount is .\ Categorize the expenses listed in the following table.\ Fixed\ Variable\ Plumbing bill \ \ \ Property taxes