#5

Attempts 3.3 Average 3.3/5 5. 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 individual's or a family's cash surplus or deficit situation If the equation results in a positive number, a exists. exists. If the equation results in a negative number, a 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 whether the item is for personal or business use. Cash In/Income Cash Out/Expense Pald medical bills Cost of business entertainment Received alimony check Once expenses have been identified, they can be categorized as either Fixed expenses or variable expenses. Converse For example, your mortgage would be considered a expense, because grocery bills would be considered because the actual amount is Categorize the expenses listed in the following table. Fixed Variable Mortgage Quarterly insurance O Grade It Now Save & Continue o TI . 3