What is one advantage of using financial software like...

What is one advantage of using financial software like Quicken, MS Money, Mint or other personal finance software for short-term money management? Question 13 options: They allow you to track day-to-day expenditures. They guarantee investment returns. They project future expenditures. They provide company pensions.

Transcript

00:01 Here we have three different questions we're being asked, so we're going to take them one at a time.

00:06 A asks us, what is accounting and how does it help you manage your personal finances? so accounting mainly deals with bookkeeping and recording of finances.

00:37 So this, it's going to record your cash infows, your outflows, revenues and expenses, assets and liabilities.

00:44 And it helps people manage their personal expenses by assisting in record keeping of income and areas of spending.

00:51 So for example, i maintain my budget on a spreadsheet and i update it regularly and i keep track of the money i have coming in and the money i have going out.

01:04 This is a method of accounting.

01:06 It's a method of bookkeeping and i am recording my finances.

01:09 I am recording my cash info and my outflow and it allows me to analyze where am i spending the most money.

01:17 Everybody's highest expenses are different.

01:19 Most of us our highest expenses are rent and typically our transportation.

01:25 After that, it just depends on what your lifestyle is.

01:29 Are you single? are you in a relationship? do you have a family to support? whether that be you have children or you have siblings you're helping or maybe you have parents you're helping, it just depends.

01:41 And that looks different for everyone.

01:43 But it helps you know what is happening with your money and how much you have coming in.

01:47 B asks us to describe the three products of accounting and bookkeeping procedures that are most useful in personal financial planning.

01:57 So the income statement helps in determining the incomes and allocation of incomes to the expenses and savings.

02:10 The balance sheet is used to determine the financial position of an individual and to determine if they are high on debt and where their assets might be increased in order to achieve financial balance.

02:28 And cash flow...

Question

Please give Ace some feedback