Question 1

A cash budget should help you to

Accepted Answer

A)  achieve your short-term financial goals. 
B)  implement disciplined spending. 
C)  eliminate impulse spending. 
D)  allocate funds to savings and investments. 
E)  do all of these 
A)  achieve your short-term financial goals. 
B)  implement disciplined spending. 
C)  eliminate impulse spending. 
D)  allocate funds to savings and investments. 
E)  do all of these

Question 2

Your auto loan payments would be listed as an expense on the income statement.

Accepted Answer

A) True 
 B)False

Question 3

The financial planning process is regulated by state governments when done by professionals.

Accepted Answer

A) True 
 B)False

Question 4

Mike and Teresa Garza have a monthly gross income of $5,000,but they pay $1,000 per month in taxes.They also pay $2,000 per month in various loan payments.What is their debt service ratio?

Accepted Answer

A)  20% 
B)  30% 
C)  40% 
D)  50% 
E)  60% 
A)  20% 
B)  30% 
C)  40% 
D)  50% 
E)  60%

Question 5

One could use statements from their various financial institutions to help complete a balance sheet.

Accepted Answer

A) True 
 B)False

Question 6

The best approach to solving the problem of an annual budget deficit is generally to

Accepted Answer

A)  liquidate enough savings to make up the deficit. 
B)  sell stock to make up the deficit. 
C)  reduce flexible expenditures. 
D)  reduce fixed expenses. 
E)  get a part time job. 
A)  liquidate enough savings to make up the deficit. 
B)  sell stock to make up the deficit. 
C)  reduce flexible expenditures. 
D)  reduce fixed expenses. 
E)  get a part time job.

Question 7

Money I loaned to a friend is a liability on my balance sheet.

Accepted Answer

A) True 
 B)False

Question 8

____ is an example of an personal asset.

Accepted Answer

A)  Jewelry 
B)  Recreational equipment 
C)  Corporate bond 
D)  Charge account balance 
E)  Auto insurance premium 
A)  Jewelry 
B)  Recreational equipment 
C)  Corporate bond 
D)  Charge account balance 
E)  Auto insurance premium

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.
-Another term sometimes used for net worth is [collateral | equity].

Accepted Answer

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

Question 10

You are more likely to achieve your goals when

Accepted Answer

A)  your income is high. 
B)  goal dates are inflexible. 
C)  short- and long-term goals are established separately. 
D)  goals are reassessed and revised periodically. 
E)  one person controls all goals in the household. 
A)  your income is high. 
B)  goal dates are inflexible. 
C)  short- and long-term goals are established separately. 
D)  goals are reassessed and revised periodically. 
E)  one person controls all goals in the household.

Question 11

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.
-Financial planning and budgeting [do | do not] mean the same thing.

Accepted Answer

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

Question 12

Jewelry,furniture and computers are examples of personal property.

Accepted Answer

A) True 
 B)False

Question 13

A cash budget helps you:

Accepted Answer

A)  Monitor and control your finances. 
B)  Decide how to allocate your income to reach your financial goals. 
C)  Achieve your long-term financial goals. 
D)  All of the above. 
E)  A & B only. 
A)  Monitor and control your finances. 
B)  Decide how to allocate your income to reach your financial goals. 
C)  Achieve your long-term financial goals. 
D)  All of the above. 
E)  A & B only.

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.
-A balance sheet provides a statement of your financial [position | performance].

Accepted Answer

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

Question 15

Sam and his wife Ann purchased a home in Lubbock,Texas in 1980 for $100,000.Their original home mortgage was for $90,000.The house has a current market value of $175,000 and a replacement value of $200,000.They still owe $55,000 on their home mortgage.Sam and Sally are now constructing their balance sheet.How should their home be reflected on their current personal balance sheet?

Accepted Answer

A)  $200,000 asset and $55,000 liability 
B)  $200,000 asset and $90,000 liability 
C)  $175,000 asset and $55,000 liability 
D)  $175,000 asset and $90,000 liability 
E)  $100,000 asset and $55,000 liability 
A)  $200,000 asset and $55,000 liability 
B)  $200,000 asset and $90,000 liability 
C)  $175,000 asset and $55,000 liability 
D)  $175,000 asset and $90,000 liability 
E)  $100,000 asset and $55,000 liability

Question 16

Professional financial planners are regulated by

Accepted Answer

A)  the federal government. 
B)  self-regulation. 
C)  state agencies. 
D)  local regulators. 
E)  no one. 
A)  the federal government. 
B)  self-regulation. 
C)  state agencies. 
D)  local regulators. 
E)  no one.

Question 17

Only the current month's payment on your mortgage loans would be listed on the balance sheet as a liability.

Accepted Answer

A) True 
 B)False

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.
-A liability would be listed on a balance sheet as the [amount originally borrowed | amount of the next loan payment to be made].

Accepted Answer

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

Question 19

Interest you earned on your savings account would be an entry on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 20

If your total assets equal $50,000 and your total liabilities equal $15,000;your debt ratio is

Accepted Answer

A)  30%. 
B)  70%. 
C)  143%. 
D)  233%. 
E)  333%. 
A)  30%. 
B)  70%. 
C)  143%. 
D)  233%. 
E)  333%.

A cash budget should help you to

Your auto loan payments would be listed as an expense on the income statement.

The financial planning process is regulated by state governments when done by professionals.

Mike and Teresa Garza have a monthly gross income of $5,000,but they pay $1,000 per month in taxes.They also pay $2,000 per month in various loan payments.What is their debt service ratio?

One could use statements from their various financial institutions to help complete a balance sheet.

The best approach to solving the problem of an annual budget deficit is generally to

Money I loaned to a friend is a liability on my balance sheet.

____ is an example of an personal asset.

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. -Another term sometimes used for net worth is [collateral | equity].

You are more likely to achieve your goals when

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. -Financial planning and budgeting [do | do not] mean the same thing.

Jewelry,furniture and computers are examples of personal property.

A cash budget helps you:

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. -A balance sheet provides a statement of your financial [position | performance].

Professional financial planners are regulated by

Only the current month's payment on your mortgage loans would be listed on the balance sheet as a liability.

Interest you earned on your savings account would be an entry on the balance sheet.

If your total assets equal $50,000 and your total liabilities equal $15,000;your debt ratio is

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 budget should help you to

Your auto loan payments would be listed as an expense on the income statement.

The financial planning process is regulated by state governments when done by professionals.

Mike and Teresa Garza have a monthly gross income of $5,000,but they pay $1,000 per month in taxes.They also pay $2,000 per month in various loan payments.What is their debt service ratio?

One could use statements from their various financial institutions to help complete a balance sheet.

The best approach to solving the problem of an annual budget deficit is generally to

Money I loaned to a friend is a liability on my balance sheet.

____ is an example of an personal asset.

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. -Another term sometimes used for net worth is [collateral | equity].

You are more likely to achieve your goals when

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. -Financial planning and budgeting [do | do not] mean the same thing.

Jewelry,furniture and computers are examples of personal property.

A cash budget helps you:

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. -A balance sheet provides a statement of your financial [position | performance].

Professional financial planners are regulated by

Only the current month's payment on your mortgage loans would be listed on the balance sheet as a liability.

Interest you earned on your savings account would be an entry on the balance sheet.

If your total assets equal $50,000 and your total liabilities equal $15,000;your debt ratio is

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