AP®︎ Business with Personal Finance Unit 3: Notes & Study Guide

Prepare for your quiz, test, or the AP exam with a comprehensive review on Unit 3 of AP Business with Personal Finance – Personal Saving and Borrowing; Business Finance and Accounting.

Exam weight: 25%–35%
9 Topics

Unit 3: Personal Saving and Borrowing; Business Finance and Accounting

Part 1: how individuals save, borrow, and manage credit and debt. Part 2: how businesses estimate costs, raise capital, and report results on the income statement, balance sheet, and cash flow statement.

Begin with Topic 3.1: Saving for Future Purchas...

To review Unit 3, go through each of the 9 topics below.

Everything you actually need to know for your Unit 3 test, pulled directly from the AP® Business with Personal Finance curriculum.

Topic 3.1
~11 min
Review
Saving for Future Purchases
Saving for Future Purchases
  • What Saving Is
  • Saving Incentives and Barriers
  • PESTEL Factors That Affect Saving
Review
Topic 3.2
~11 min
Review
Borrowing, Credit, and Debt
Borrowing, Credit, and Debt
  • What Borrowing and Credit Are
  • Sources and Types of Consumer Credit
  • How Lenders Judge Creditworthiness
Review
Topic 3.3
~11 min
Review
Accounting and Financial Management
Accounting and Financial Management
  • What Financial Data Shows
  • Recording and Reporting Financial Information
  • Why Businesses and Consumers Track Financial Data
Review
Topic 3.4
~9 min
Review
Business Expenses
Business Expenses
  • What Business Expenses Are
  • Startup Costs
  • Recurring Costs and How to Classify Them
Review
Topic 3.5
~11 min
Review
Financial Capital
Financial Capital
  • What Financial Capital Is and Why Businesses Need It
  • Main Sources of Financial Capital
  • What Lenders and Investors Get Back
Review
Topic 3.6
~9 min
Review
The Income Statement
The Income Statement
  • What an Income Statement Shows
  • The Income Statement Formula Path
  • Profit Margins and How to Read Performance
Review
Topic 3.7
~10 min
Review
The Balance Sheet and Net Worth
The Balance Sheet and Net Worth
  • What a Balance Sheet Shows
  • The Parts of a Balance Sheet
  • How Balance Sheets Change and How to Read Them
Review
Topic 3.8
~9 min
Review
The Cash Flow Statement
The Cash Flow Statement
  • What the Cash Flow Statement Shows
  • Cash Inflows and Cash Outflows
  • Operating, Investing, and Financing Activities
Review
Topic 3.9
~11 min
Review
Ethics and Financial Reporting
Ethics and Financial Reporting
  • What ethical financial management and reporting are
  • Major unethical financial practices
  • Why people and businesses do it
Review

Notes

1 credit used · 5/5 remaining