How can we help?
You can also find more resources in our
Select a category
Something is confusing
Something is broken
I have a suggestion
What is your email?
What is 1 + 3?
FP 101 Ch 2 Personal Finance
Everything you own, including liquid assets, real and personal property, and investments.
Debt Payment Ratio
A financial ratio that measures the percentage of disposable income required to make debt payments.
Total debt divided by total assets.
Everything you owe to others, including unpaid bills, credit card balances, car loans, student loans, and morgages. Also known as liablities.
Expenses that are a constant dollar amount each period.
Income before taxes and expenses.
The inability to pay debts as they come due.
Cash and near-cash assets that can be easily converted to cash without loss of value.
A financial ratio that measures the ability to pay household expenses out of liquid assets in the absence of regular home.
The price that something can be sold for today.
Mortgage Debt Service
The total dollar amount of monthly mortgage principal, interest, property taxes, and home-owner's insurance.
Mortgage Debt Service Ratio
The ratio of mortgage debt service to gross income.
The amount of wealth you would have left after paying all your outstanding debts.
Personal Balance Sheet
A statement that details the value of what you own and what you owe to others to arrive at an estimate of your net worth.
Personal Cash Flow Statement
A summary of income and expenditures over a period of time.
Personal Financial Statement
A statement that summarizes your financial information.
A financial ratio that measures the percentage of after-tax income going to savings.
Expenses that vary in amount from period to period.