The bottom line of James’s income statement shows a negative number. What does this mean? (1 point) Responses He spends $200 a month on clothes. He spends $200 a month on clothes. He entered the incorrect amount for his rent. He entered the incorrect amount for his rent. He is spending more money than he makes. He is spending more money than he makes. He is not contributing to his 401(k).
How can James free up more money to pay down his credit card debt? (1 point) Responses He has to start contributing to his 401(k). He has to start contributing to his 401(k). He has to pay less in rent each month. He has to pay less in rent each month. He has to complete an income statements every month. He has to complete an income statements every month. He has to cut back on other expenses.
He has to cut back on other expenses.
What is a net worth statement?(1 point) Responses It is a listing of what an individual owns minus what they owe. It is a listing of what an individual owns minus what they owe. It is a spending plan based on income and expenses. It is a spending plan based on income and expenses. It is a listing of an individual’s net income minus their expenses, calculated on a monthly basis. It is a listing of an individual’s net income minus their expenses, calculated on a monthly basis. It is an invoice.
It is a listing of what an individual owns minus what they owe.
Which of the following may fall under the category of collateral?(1 point) Responses a credit card balance of $12,000 a credit card balance of $12,000 a previous loan that was repaid in full a previous loan that was repaid in full an antique vase valued at $125,000 an antique vase valued at $125,000 a high salary
an antique vase valued at $125,000
Which of the following is not one of the Three Cs?(1 point) Responses collateral collateral character character capacity capacity capital
collateral
The bottom line of an income statement shows a negative number when the total expenses are higher than the total income. This means that James is spending more money than he makes. To understand this, you need to look at James's income statement, which is a financial document that shows his revenues (income) and expenses. By subtracting the total expenses from the total income, you arrive at the bottom line, which is either a positive or negative number. In this case, since the bottom line is negative, it means that James's expenses exceed his income.
