Question 1

When preparing a cash budget,estimating expenses using actual expenses from previous years and by tracking current expenses makes the task easier.

Accepted Answer

A) True 
 B)False

Question 2

A budget is a

Accepted Answer

A)  purchase plan. 
B)  line of credit. 
C)  financial statement. 
D)  detailed financial forecast. 
E)  set of personal financial objectives. 
A)  purchase plan. 
B)  line of credit. 
C)  financial statement. 
D)  detailed financial forecast. 
E)  set of personal financial objectives.

Question 3

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 short-term goals you put into your financial plan [will | will not] affect the achievement of long-term goals.

Accepted Answer

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

Question 4

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 deficit on your income/expense statement will have [an | no] effect on your balance sheet.

Accepted Answer

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

Question 5

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.
-Putting specific target dates on your goals [will not | will] increase the likelihood of their being accomplished.

Accepted Answer

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

Question 6

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 detailed forecast used to monitor and control expenses is called a [financial plan | income/expenditures statement].

Accepted Answer

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

Question 7

I should not record ____ on an income/expense statement covering January 1 to June 30.

Accepted Answer

A)  an $800 refrigerator bought on credit May 30 
B)  a paid March telephone bill 
C)  health insurance premiums deducted from monthly pay checks 
D)  checking account service charges 
E)  groceries bought and paid for in June 
A)  an $800 refrigerator bought on credit May 30 
B)  a paid March telephone bill 
C)  health insurance premiums deducted from monthly pay checks 
D)  checking account service charges 
E)  groceries bought and paid for in June

Question 8

A house and land are examples of financial property.

Accepted Answer

A) True 
 B)False

Question 9

The balance sheet equation is assets plus liabilities equals net worth.

Accepted Answer

A) True 
 B)False

Question 10

Balance sheets and income statements are most useful if prepared at least annually.

Accepted Answer

A) True 
 B)False

Question 11

A charge made on your credit card becomes a liability as soon as the charge is incurred.

Accepted Answer

A) True 
 B)False

Question 12

The best place to keep a budget is in a safe deposit box.

Accepted Answer

A) True 
 B)False

Question 13

The three parts of your balance sheet are

Accepted Answer

A)  income,liabilities,balance. 
B)  assets,expenditures,balance. 
C)  assets,liabilities,balance. 
D)  assets,liabilities,net worth. 
E)  income,liabilities,net worth. 
A)  income,liabilities,balance. 
B)  assets,expenditures,balance. 
C)  assets,liabilities,balance. 
D)  assets,liabilities,net worth. 
E)  income,liabilities,net worth.

Question 14

A cash deficit decreases net worth.

Accepted Answer

A) True 
 B)False

Question 15

Kathy purchased new furniture for $10,000.She put $1,000 down and financed $9,000.She will pay $350 per month until the loan is paid off.Which of the following are true?

Accepted Answer

A)  The furniture should be recorded as an asset of $10,000 on Kathy's balance sheet. 
B)  The $9,000 is entered as a liability on Kathy's balance sheet. 
C)  The furniture should be recorded as a $1,000 expenditure on Kathy's balance sheet. 
D)  The $350 payments are expenditures on Kathy's income and expenditure statement. 
E)  All are correct except c 
A)  The furniture should be recorded as an asset of $10,000 on Kathy's balance sheet. 
B)  The $9,000 is entered as a liability on Kathy's balance sheet. 
C)  The furniture should be recorded as a $1,000 expenditure on Kathy's balance sheet. 
D)  The $350 payments are expenditures on Kathy's income and expenditure statement. 
E)  All are correct except c

Question 16

Mindy and Lou had liquid assets of $10,000 and current debts of $30,000.What is their liquidity ratio?

Accepted Answer

A)  25% 
B)  33% 
C)  67% 
D)  150% 
E)  300% 
A)  25% 
B)  33% 
C)  67% 
D)  150% 
E)  300%

Question 17

Inflation affects

Accepted Answer

A)  long-term financial goals. 
B)  short-term goals. 
C)  budget expenditures. 
D)  asset values. 
E)  all of these 
A)  long-term financial goals. 
B)  short-term goals. 
C)  budget expenditures. 
D)  asset values. 
E)  all of these

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.
-Payments made on your loan obligations should [increase | decrease] your net worth.

Accepted Answer

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

Question 19

Which of the following has been determined to be the best way for dual-income families to handle their money management?

Accepted Answer

A)  Place all income into a single,joint account. 
B)  Have each spouse contribute equal amounts to a joint account for family expenses. 
C)  Have each spouse contribute an equal proportion of their incomes to a joint account for family expenses. 
D)  Have one spouse make all the financial decisions 
E)  None of the above. 
A)  Place all income into a single,joint account. 
B)  Have each spouse contribute equal amounts to a joint account for family expenses. 
C)  Have each spouse contribute an equal proportion of their incomes to a joint account for family expenses. 
D)  Have one spouse make all the financial decisions 
E)  None of the above.

Question 20

Mary and Tom purchased their home for $150,000,and it is now worth $175,000.Its asset value is $150,000.

Accepted Answer

A) True 
 B)False

When preparing a cash budget,estimating expenses using actual expenses from previous years and by tracking current expenses makes the task easier.

A budget is a

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 deficit on your income/expense statement will have [an | no] effect on your balance sheet.

I should not record ____ on an income/expense statement covering January 1 to June 30.

A house and land are examples of financial property.

The balance sheet equation is assets plus liabilities equals net worth.

Balance sheets and income statements are most useful if prepared at least annually.

A charge made on your credit card becomes a liability as soon as the charge is incurred.

The best place to keep a budget is in a safe deposit box.

The three parts of your balance sheet are

A cash deficit decreases net worth.

Kathy purchased new furniture for $10,000.She put $1,000 down and financed $9,000.She will pay $350 per month until the loan is paid off.Which of the following are true?

Mindy and Lou had liquid assets of $10,000 and current debts of $30,000.What is their liquidity ratio?

Inflation affects

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. -Payments made on your loan obligations should [increase | decrease] your net worth.

Which of the following has been determined to be the best way for dual-income families to handle their money management?

Mary and Tom purchased their home for $150,000,and it is now worth $175,000.Its asset value is $150,000.

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

When preparing a cash budget,estimating expenses using actual expenses from previous years and by tracking current expenses makes the task easier.

A budget is a

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 deficit on your income/expense statement will have [an | no] effect on your balance sheet.

I should not record ____ on an income/expense statement covering January 1 to June 30.

A house and land are examples of financial property.

The balance sheet equation is assets plus liabilities equals net worth.

Balance sheets and income statements are most useful if prepared at least annually.

A charge made on your credit card becomes a liability as soon as the charge is incurred.

The best place to keep a budget is in a safe deposit box.

The three parts of your balance sheet are

A cash deficit decreases net worth.

Kathy purchased new furniture for $10,000.She put $1,000 down and financed $9,000.She will pay $350 per month until the loan is paid off.Which of the following are true?

Mindy and Lou had liquid assets of $10,000 and current debts of $30,000.What is their liquidity ratio?

Inflation affects

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. -Payments made on your loan obligations should [increase | decrease] your net worth.

Which of the following has been determined to be the best way for dual-income families to handle their money management?

Mary and Tom purchased their home for $150,000,and it is now worth $175,000.Its asset value is $150,000.

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