Personal Financial Accounting

a. What is accounting and how does it help you manage your personal finances?

Accounting is a system of control and recording of expenses and income and other economic operations have been performed.

You need to know how to divide your income to pay bills, invest, save, or spend for extra expenses. However, being a good financial manager can be an excellent tool when it comes to acquiring assets, such as a car or a house, or endure difficult economic times.

The benefit of having a daily expense record is that it lets you know where your money is going, and also, it allows you to plan better expenses and also be able to save each month for future projects.

To do this, you can prepare a balance sheet and calculate the current assets, and then draw up a

The good administrator must plan and outline the goals he wants to achieve by ordering his money, such as taking a trip or buying a car or a house. Once the goals are defined, the person can have an idea of how much you should save or spend monthly to achieve all the goals.

b. Describe the three products of accounting and bookkeeping procedures that are most useful in personal financial planning?

The income statement processes a company's financial performance over a specific period of time. Financial performance is evaluated by giving a summary of how the business incurs its incomes and expenses through both operating and non-operating activities. It also shows the net profit or loss incurred over a specific accounting period.

The cash flow statement shows the cash that came in and where it came from, and how much cash went out and where it went. This money may not come from income and expenses.

The cash flow statement shows how you create liquidity and your net income. Liquidity is nearness to cash, and liquidity has