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1st half: Alfred Marshall's Principles of Economics
2nd half:
The Income and Expense Statement:
What We Earn and Where It Goes
Where does all the money go? Preparing an income and expense statement would provide this answer. Whereas the balance sheet (from last show) describes a person's or family's financial position at a given point in time, the income and expense statement captures the various financial activities that have occurred over time---normally over the course of a year, although it technically can cover any time period (month, quarter, and so on). Think of this statement as a motion picture that not only shows actual results over time but also allows you to compare them with budgeted financial goals as well. Equally important, the statement allows you to evaluate the amount of saving and investing during the period it covers.
