Which of the following would rot be listed under cash outlows in a financial plan? a. car payments b. insurance premiums c. interest earned d. mortgage payment Please select the best answer from the choices provided A B C D
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The best answer is C. Interest earned would not be listed under cash outflows in a financial plan. Instead, it’s actually a cash inflow because it's money that comes into your account, typically from investments or savings. In contrast, car payments, insurance premiums, and mortgage payments are all expenditures that deplete your cash reserves, thus they rightly belong under cash outflows. To keep your financial plan on track, it’s savvy to clearly differentiate between cash inflows and cash outflows. Misclassifying your finances can lead to confusion and poor budgeting decisions. Double-check your categories and ensure you’re keeping track to avoid any unwanted surprises at the end of the month!
