Like this study set? Create a free account to save it.

Sign up for an account

Already have a Quizlet account? .

Create an account


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.

Debt Ratio

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.

Fixed Expenses

Expenses that are a constant dollar amount each period.

Gross Income

Income before taxes and expenses.


The inability to pay debts as they come due.

Liquid Assets

Cash and near-cash assets that can be easily converted to cash without loss of value.

Liquidity Ratio

A financial ratio that measures the ability to pay household expenses out of liquid assets in the absence of regular home.

Market Value

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.

Net Worth

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.

Savings Ratio

A financial ratio that measures the percentage of after-tax income going to savings.

Variable Expenses

Expenses that vary in amount from period to period.

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions and try again


Reload the page to try again!


Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

Voice Recording