Question 1

A cash surplus will typically produce a positive savings ratio.

Accepted Answer

A) True 
 B)False

Question 2

Cafeteria benefit plans

Accepted Answer

A)  are paid for by employers. 
B)  are paid for by employees. 
C)  provide employees a choice regarding the benefits they receive. 
D)  allow employees to reward productive employees. 
E)  are less beneficial to two-career families than to others. 
A)  are paid for by employers. 
B)  are paid for by employees. 
C)  provide employees a choice regarding the benefits they receive. 
D)  allow employees to reward productive employees. 
E)  are less beneficial to two-career families than to others.

Question 3

Using time value of money is most important when planning for short-term goals.

Accepted Answer

A) True 
 B)False

Question 4

Your total cash income is $80,000.You pay $8,000 in taxes and $60,000 in other expenses.Your savings ratio is

Accepted Answer

A)  10.0% 
B)  14.3% 
C)  15.0%. 
D)  16.7%. 
E)  17.5%. 
A)  10.0% 
B)  14.3% 
C)  15.0%. 
D)  16.7%. 
E)  17.5%.

Question 5

The level of the debt service ratio would indicate your ability to meet loan payments out of current income.

Accepted Answer

A) True 
 B)False

Question 6

Investment assets include items such as boats or automobiles.

Accepted Answer

A) True 
 B)False

Question 7

In a budget,"fun money" is a budget category used for family members to spend as they like without having to account for how it is spent.

Accepted Answer

A) True 
 B)False

Question 8

When estimating income for the income and expense statement,you should

Accepted Answer

A)  use gross income. 
B)  include expected pay increases. 
C)  adjust for inflation. 
D)  use net income. 
E)  none of these 
A)  use gross income. 
B)  include expected pay increases. 
C)  adjust for inflation. 
D)  use net income. 
E)  none of these

Question 9

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-The first step in financial planning is to [define financial goals | set up a budget.]

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 10

Mandy and Jeff have a net worth of $25,000 and total assets of $140,000.If their revolving credit and unpaid bills total $2,200,what are their total liabilities?

Accepted Answer

A)  $115,000 
B)  $140,000 
C)  $142,200 
D)  $165,000 
E)  $167,200 
A)  $115,000 
B)  $140,000 
C)  $142,200 
D)  $165,000 
E)  $167,200

Question 11

The Hamptons want to have $1,750,000 for their retirement in 30 years.How much should they save annually if they think they can earn 8% on their investments?

Accepted Answer

The answer of The Hamptons want to have $1,750,000 for...

Question 12

The balance sheet describes a family's wealth

Accepted Answer

A)  at a certain point in tine. 
B)  as an annual summary. 
C)  as a time period less than one year. 
D)  at a future time. 
E)  none of these 
A)  at a certain point in tine. 
B)  as an annual summary. 
C)  as a time period less than one year. 
D)  at a future time. 
E)  none of these

Question 13

The savings ratio indicates the percentage of after-tax income that is saved.

Accepted Answer

A) True 
 B)False

Question 14

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Short-term goals are usually based on a maximum period of [one year | five years].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 15

Financial planning is necessary only if you earn a lot of money.

Accepted Answer

A) True 
 B)False

Question 16

A(n)____ would not be listed as an asset on your balance sheet.

Accepted Answer

A)  mortgaged home 
B)  savings account 
C)  owned automobile 
D)  checking account 
E)  leased automobile 
A)  mortgaged home 
B)  savings account 
C)  owned automobile 
D)  checking account 
E)  leased automobile

Question 17

Inflation this coming year is expected to be 3 percent.If Mr.Gonza earned $45,000 this year,how much must he earn the following year just to keep up with inflation and maintain the balance between his income and his increasing expenditures? (Show all work. )

Accepted Answer

$45,000 + .03($45,00

Question 18

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-In a [smart | balanced] budget,the total income for the year equals or exceeds total expenses.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 19

____ would be an example of a periodic expense.

Accepted Answer

A)  Food 
B)  Vacation 
C)  Utilities 
D)  Taxes 
E)  none of these 
A)  Food 
B)  Vacation 
C)  Utilities 
D)  Taxes 
E)  none of these

Question 20

Net worth is measured by

Accepted Answer

A)  bank card balances. 
B)  house mortgage balances. 
C)  amount owed on an automobile loan. 
D)  assets minus liabilities. 
E)  insurance premium. 
A)  bank card balances. 
B)  house mortgage balances. 
C)  amount owed on an automobile loan. 
D)  assets minus liabilities. 
E)  insurance premium.

A cash surplus will typically produce a positive savings ratio.

Cafeteria benefit plans

Using time value of money is most important when planning for short-term goals.

Your total cash income is $80,000.You pay $8,000 in taxes and $60,000 in other expenses.Your savings ratio is

The level of the debt service ratio would indicate your ability to meet loan payments out of current income.

Investment assets include items such as boats or automobiles.

In a budget,"fun money" is a budget category used for family members to spend as they like without having to account for how it is spent.

When estimating income for the income and expense statement,you should

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The first step in financial planning is to [define financial goals | set up a budget.]

Mandy and Jeff have a net worth of $25,000 and total assets of $140,000.If their revolving credit and unpaid bills total $2,200,what are their total liabilities?

The Hamptons want to have $1,750,000 for their retirement in 30 years.How much should they save annually if they think they can earn 8% on their investments?

The balance sheet describes a family's wealth

The savings ratio indicates the percentage of after-tax income that is saved.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Short-term goals are usually based on a maximum period of [one year | five years].

Financial planning is necessary only if you earn a lot of money.

A(n)____ would not be listed as an asset on your balance sheet.

Inflation this coming year is expected to be 3 percent.If Mr.Gonza earned $45,000 this year,how much must he earn the following year just to keep up with inflation and maintain the balance between his income and his increasing expenditures? (Show all work. )

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -In a [smart | balanced] budget,the total income for the year equals or exceeds total expenses.

____ would be an example of a periodic expense.

Net worth is measured by

Understanding the Financial Planning Process

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 2: Your Financial Statements and Plans

A cash surplus will typically produce a positive savings ratio.

Cafeteria benefit plans

Using time value of money is most important when planning for short-term goals.

Your total cash income is $80,000.You pay $8,000 in taxes and $60,000 in other expenses.Your savings ratio is

The level of the debt service ratio would indicate your ability to meet loan payments out of current income.

Investment assets include items such as boats or automobiles.

In a budget,"fun money" is a budget category used for family members to spend as they like without having to account for how it is spent.

When estimating income for the income and expense statement,you should

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The first step in financial planning is to [define financial goals | set up a budget.]

Mandy and Jeff have a net worth of $25,000 and total assets of $140,000.If their revolving credit and unpaid bills total $2,200,what are their total liabilities?

The Hamptons want to have $1,750,000 for their retirement in 30 years.How much should they save annually if they think they can earn 8% on their investments?

The balance sheet describes a family's wealth

The savings ratio indicates the percentage of after-tax income that is saved.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Short-term goals are usually based on a maximum period of [one year | five years].

Financial planning is necessary only if you earn a lot of money.

A(n)____ would not be listed as an asset on your balance sheet.

Inflation this coming year is expected to be 3 percent.If Mr.Gonza earned $45,000 this year,how much must he earn the following year just to keep up with inflation and maintain the balance between his income and his increasing expenditures? (Show all work. )

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -In a [smart | balanced] budget,the total income for the year equals or exceeds total expenses.

____ would be an example of a periodic expense.

Net worth is measured by

Understanding the Financial Planning Process

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters