Question 1

Budgets should be prepared on an accural basis.

Accepted Answer

A) True 
 B)False

Question 2

Jamie wants to have $1,000,000 for her retirement in 25 years.How much should she save annually if she thinks she can earn 10% on her investments?

Accepted Answer

The answer of Jamie wants to have $1,000,000 for her...

Question 3

Another term sometimes used instead of net worth is

Accepted Answer

A)  assets. 
B)  net debts. 
C)  long-term liabilities 
D)  equity. 
E)  liquid assets. 
A)  assets. 
B)  net debts. 
C)  long-term liabilities 
D)  equity. 
E)  liquid assets.

Question 4

Your total cash income is $40,000.You pay $5,000 in taxes and $30,000 in other expenses.Your savings ratio is

Accepted Answer

A)  7.5% 
B)  10.0% 
C)  12.5%. 
D)  13.3%. 
E)  14.3%. 
A)  7.5% 
B)  10.0% 
C)  12.5%. 
D)  13.3%. 
E)  14.3%.

Question 5

In order to minimize the difficulty associated with meeting monthly loan payments,the debt service ratio should be

Accepted Answer

A)  above 50%. 
B)  below 50%. 
C)  at 35%. 
D)  below 35%. 
E)  above 20%. 
A)  above 50%. 
B)  below 50%. 
C)  at 35%. 
D)  below 35%. 
E)  above 20%.

Question 6

Assets purchased on credit should be included on the asset side of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 7

On the balance sheet,a mortgage loan is recorded as the

Accepted Answer

A)  interest only. 
B)  sum of interest paid and the outstanding balance. 
C)  sum of interest due and the outstanding balance. 
D)  principal portion only. 
E)  none of the above. 
A)  interest only. 
B)  sum of interest paid and the outstanding balance. 
C)  sum of interest due and the outstanding balance. 
D)  principal portion only. 
E)  none of the above.

Question 8

Jamil invested $9,500 in an account he expects will earn 5% annually.Approximately how many years will it take for the account to double in value?

Accepted Answer

A)  8.8 
B)  9.7 
C)  10.8 
D)  11.4 
E)  14.4 
A)  8.8 
B)  9.7 
C)  10.8 
D)  11.4 
E)  14.4

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.
-When your liabilities exceed your assets,you are [solvent | insolvent].

Accepted Answer

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

Question 10

____ would not be listed as a liability on your balance sheet.

Accepted Answer

A)  Taxes owed 
B)  Loan balances 
C)  Bank credit card charges 
D)  Savings accounts 
E)  Rent due 
A)  Taxes owed 
B)  Loan balances 
C)  Bank credit card charges 
D)  Savings accounts 
E)  Rent due

Question 11

Net income (after taxes)should be used when developing an income and expense statement.

Accepted Answer

A) True 
 B)False

Question 12

Financial assets are intangible assets acquired to achieve long-term personal financial goals.

Accepted Answer

A) True 
 B)False

Question 13

All assets are recorded on the balance sheet at their original cost.

Accepted Answer

A) True 
 B)False

Question 14

Inflation this coming year is expected to be 4 percent.If Mr.Gonza earned $37,000 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

$37,000 + .04($37,00

Question 15

The equity in your home is the difference between the loan balance and the purchase price.

Accepted Answer

A) True 
 B)False

Question 16

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 stock portfolio would represent a(n)[tangible | intangible] asset.

Accepted Answer

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

Question 17

A balance sheet shows your financial condition as of the time the statement is prepared.

Accepted Answer

A) True 
 B)False

Question 18

The income and expenditures statement is a summary of actual income and expenditures over a specific point of time.

Accepted Answer

A) True 
 B)False

Question 19

If you obtain a loan to purchase a car in June,this loan amount would be included as income for June.

Accepted Answer

A) True 
 B)False

Question 20

The need for budget adjustments is indicated when

Accepted Answer

A)  income is stable. 
B)  account deficits and surpluses balance out. 
C)  account deficits are more than surpluses. 
D)  a new calendar year begins. 
E)  short-term financial goals are achieved. 
A)  income is stable. 
B)  account deficits and surpluses balance out. 
C)  account deficits are more than surpluses. 
D)  a new calendar year begins. 
E)  short-term financial goals are achieved.

Budgets should be prepared on an accural basis.

Jamie wants to have $1,000,000 for her retirement in 25 years.How much should she save annually if she thinks she can earn 10% on her investments?

Another term sometimes used instead of net worth is

Your total cash income is $40,000.You pay $5,000 in taxes and $30,000 in other expenses.Your savings ratio is

In order to minimize the difficulty associated with meeting monthly loan payments,the debt service ratio should be

Assets purchased on credit should be included on the asset side of the balance sheet.

On the balance sheet,a mortgage loan is recorded as the

Jamil invested $9,500 in an account he expects will earn 5% annually.Approximately how many years will it take for the account to double in value?

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. -When your liabilities exceed your assets,you are [solvent | insolvent].

____ would not be listed as a liability on your balance sheet.

Net income (after taxes)should be used when developing an income and expense statement.

Financial assets are intangible assets acquired to achieve long-term personal financial goals.

All assets are recorded on the balance sheet at their original cost.

Inflation this coming year is expected to be 4 percent.If Mr.Gonza earned $37,000 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. )

The equity in your home is the difference between the loan balance and the purchase price.

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 stock portfolio would represent a(n)[tangible | intangible] asset.

A balance sheet shows your financial condition as of the time the statement is prepared.

The income and expenditures statement is a summary of actual income and expenditures over a specific point of time.

If you obtain a loan to purchase a car in June,this loan amount would be included as income for June.

The need for budget adjustments is indicated when

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

Budgets should be prepared on an accural basis.

Jamie wants to have $1,000,000 for her retirement in 25 years.How much should she save annually if she thinks she can earn 10% on her investments?

Another term sometimes used instead of net worth is

Your total cash income is $40,000.You pay $5,000 in taxes and $30,000 in other expenses.Your savings ratio is

In order to minimize the difficulty associated with meeting monthly loan payments,the debt service ratio should be

Assets purchased on credit should be included on the asset side of the balance sheet.

On the balance sheet,a mortgage loan is recorded as the

Jamil invested $9,500 in an account he expects will earn 5% annually.Approximately how many years will it take for the account to double in value?

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. -When your liabilities exceed your assets,you are [solvent | insolvent].

____ would not be listed as a liability on your balance sheet.

Net income (after taxes)should be used when developing an income and expense statement.

Financial assets are intangible assets acquired to achieve long-term personal financial goals.

All assets are recorded on the balance sheet at their original cost.

Inflation this coming year is expected to be 4 percent.If Mr.Gonza earned $37,000 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. )

The equity in your home is the difference between the loan balance and the purchase price.

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 stock portfolio would represent a(n)[tangible | intangible] asset.

A balance sheet shows your financial condition as of the time the statement is prepared.

The income and expenditures statement is a summary of actual income and expenditures over a specific point of time.

If you obtain a loan to purchase a car in June,this loan amount would be included as income for June.

The need for budget adjustments is indicated when

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