Study with the several resources on Docsity
Earn points by helping other students or get them with a premium plan
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Students of Computer Science, study E-Commerce as an auxiliary subject. these are the key points discussed in these Lecture Slides of E-Commerce : Liabilities, Current Liabilities, Credit Cards, Utility Bills, Auto Loans, Home Mortgage, Balance Sheet, Worth Guidelines, Personal Income Statement, Cash Basis
Typology: Slides
1 / 10
This page cannot be seen from the preview
Don't miss anything!
Current liabilities are liabilities that must bepaid-off within the next year.
examples -- credit cards and utility bills - Long-term liabilities are liabilities that extendbeyond one year. - examples -- home mortgage and auto loans
Insolvency: do you owe more than you own?
How age affects net worth guidelines - Uses of a balance sheet
Sources of income:wages, tips, royalties,salary, andcommissions - Income is amountearned, notnecessarily amountreceived.
The two major expenditure categories: taxesand living expenses
Fixed expenses: Expenses you don’t directlycontrol -- e.g., mortgage, rent, cable TV - Variable expense: Expenses you can control --e.g., food, entertainment, clothing
Question 1: Do you have adequate liquidity tomeet emergencies?
Question 2: Do you have the ability to meetyour debt obligations? - Question 3: Are you saving as much as youthink you are?
Ratios to determine whether or not you haveenough monetary assets (1) to pay for anunexpected large expense or (2) to tide youover during periods of reduced or eliminatedearnings.
Current ratio - Month’s living expenses covered ratio
Ratio greater than 2recommended - Track the trend and ifgoing down --makechanges
