Question 1

A personal balance sheet reports your personal income and expenditures.

Accepted Answer

A) True 
 B)False

Question 2

The amount of income that a person or household has available to spend after deductions for taxes and other items is called:

Accepted Answer

A) take-home pay. 
B) discretionary income. 
C) surplus. 
D) budget variance. 
E) cash flow. 
A) take-home pay. 
B) discretionary income. 
C) surplus. 
D) budget variance. 
E) cash flow.

Question 3

Take-home pay is a person's earnings after deductions for taxes and other items.

Accepted Answer

A) True 
 B)False

Question 4

Improvements in a person's financial position are the result of:

Accepted Answer

A) increasing liabilities. 
B) reducing earnings. 
C) saving current income and investing 
D) increasing purchases on credit. 
E) withdrawing amounts from savings. 
A) increasing liabilities. 
B) reducing earnings. 
C) saving current income and investing 
D) increasing purchases on credit. 
E) withdrawing amounts from savings.

Question 5

Catherine Jones has determined the following information about her own financial situation.Her checking account is worth $800 and her savings account is worth $1,100.She owns her own home that has a market value of $122,000.She has furniture and appliances worth $9,500 and a laptop worth $1,400.She has a car worth $12,500.She has recently purchased a mutual fund worth $5,500 and she has a retirement account worth $32,500.What is the total value of her assets?

Accepted Answer

A) $127,850 
B) $122,000 
C) $168,600 
D) $159,900 
E) $185,300 
A) $127,850 
B) $122,000 
C) $168,600 
D) $159,900 
E) $185,300

Question 6

Nicholas Bowman has a savings account with $825 in it.He knows that he can easily withdraw this money and spend it whenever he wishes.This would be an example of:

Accepted Answer

A) money management. 
B) a personal possession. 
C) a limited asset. 
D) a liquid asset. 
E) net worth analysis. 
A) money management. 
B) a personal possession. 
C) a limited asset. 
D) a liquid asset. 
E) net worth analysis.

Question 7

Copies of tax returns and supporting data should be kept for ________ year(s).

Accepted Answer

A) 0 
B) 1 
C) 3 
D) 5 
E) 7 
A) 0 
B) 1 
C) 3 
D) 5 
E) 7

Question 8

Financial experts recommend monthly savings of:

Accepted Answer

A) 1 percent. 
B) 2 to 3 percent. 
C) 4 percent. 
D) 5 to 10 percent. 
E) 15 percent. 
A) 1 percent. 
B) 2 to 3 percent. 
C) 4 percent. 
D) 5 to 10 percent. 
E) 15 percent.

Question 9

Kyle Burroughs has decided to put $30 more per week in his savings account.He knows this will reduce his ability to go out to eat each week but thinks building his emergency fund is important.This would be an example of:

Accepted Answer

A) a budget variance. 
B) an opportunity cost. 
C) a balance sheet. 
D) an accounting error. 
E) a budget anomaly. 
A) a budget variance. 
B) an opportunity cost. 
C) a balance sheet. 
D) an accounting error. 
E) a budget anomaly.

Question 10

Darlene Edwards has the following financial amounts: checking account $750,savings account $2,200,credit card balance $500,jewelry $1,200,real estate valued at $119,000,a mortgage on the real estate of $23,000.What is the total of Darlene's assets? What actions could she take to increase her net worth?

Accepted Answer

Total assets = $750 + $2,200 + $1,200 +

Question 11

Your aunt gives you some money for your birthday and you decide to put it into your savings account instead of spending it.The trade-off of not being able to spend the money now is an example of ________ cost.

Accepted Answer

A) fixed 
B) opportunity 
C) variable 
D) transaction 
E) total 
A) fixed 
B) opportunity 
C) variable 
D) transaction 
E) total

Question 12

What types of financial records and documents should be kept in a safe deposit box?

Accepted Answer

A safe deposit box should be used to sto

Question 13

Catherine Jones has determined the following information about her own financial situation.Her checking account is worth $850 and her savings account is worth $1,200.She owns her own home that has a market value of $98,000.She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,300.She has a car worth $12,500.She has recently purchased a mutual fund worth $4,500 and she has a retirement account worth $62,300.What is the value of her investment assets?

Accepted Answer

A) $2,050 
B) $98,000 
C) $27,800 
D) $66,800 
E) $171,900 
A) $2,050 
B) $98,000 
C) $27,800 
D) $66,800 
E) $171,900

Question 14

For January,Beth Rhodes had cash inflows of $3,500 and cash outflows of $4,050,resulting in a:

Accepted Answer

A) balanced budget. 
B) surplus of $550. 
C) deficit of $550. 
D) surplus of $3,500. 
E) deficit of $4,050. 
A) balanced budget. 
B) surplus of $550. 
C) deficit of $550. 
D) surplus of $3,500. 
E) deficit of $4,050.

Question 15

Which of the following is typically considered to be a personal and employment record?

Accepted Answer

A) Birth certificate 
B) Current résumé 
C) Employee benefit information 
D) Social Security number 
E) All of these 
A) Birth certificate 
B) Current résumé 
C) Employee benefit information 
D) Social Security number 
E) All of these

Question 16

Which of the following are considered to be personal financial statements?

Accepted Answer

A) Budget and credit card statements 
B) Personal balance sheet and cash flow statement 
C) Checkbook and budget 
D) Tax returns 
E) Bank statement and savings statement 
A) Budget and credit card statements 
B) Personal balance sheet and cash flow statement 
C) Checkbook and budget 
D) Tax returns 
E) Bank statement and savings statement

Question 17

When it comes to savings,most Americans:

Accepted Answer

A) have an adequate emergency fund. 
B) devote large portions of their income to savings. 
C) find saving difficult. 
D) keep substantial amounts in a regular savings account. 
E) reduce the amount they save during their working life. 
A) have an adequate emergency fund. 
B) devote large portions of their income to savings. 
C) find saving difficult. 
D) keep substantial amounts in a regular savings account. 
E) reduce the amount they save during their working life.

Question 18

A decrease in net worth could be the result of:

Accepted Answer

A) inflows exceeding outflows for a month. 
B) outflows exceeding inflows for a month. 
C) assets exceeding expenses. 
D) increased earnings on the job. 
E) inflows and outflows being equal for a month. 
A) inflows exceeding outflows for a month. 
B) outflows exceeding inflows for a month. 
C) assets exceeding expenses. 
D) increased earnings on the job. 
E) inflows and outflows being equal for a month.

Question 19

An organized system of financial records provides a basis for:

Accepted Answer

A) handling daily business activities. 
B) planning and measuring financial progress. 
C) completing required tax reports. 
D) making effective investment decisions. 
E) All of these 
A) handling daily business activities. 
B) planning and measuring financial progress. 
C) completing required tax reports. 
D) making effective investment decisions. 
E) All of these

Question 20

Jamie McFarland has determined that the value of her liquid assets is $4,500,the value of her real estate is $128,000,the value of her personal possessions is $62,000 and the value of her investment assets is $73,000.She has also determined the value of her current liabilities is $5,700 and the value of her long-term liabilities is $89,000.What is Jamie's net worth?

Accepted Answer

A) $267,500 
B) $94,700 
C) $172,800 
D) $205,500 
E) $162,000 
A) $267,500 
B) $94,700 
C) $172,800 
D) $205,500 
E) $162,000

A personal balance sheet reports your personal income and expenditures.

The amount of income that a person or household has available to spend after deductions for taxes and other items is called:

Take-home pay is a person's earnings after deductions for taxes and other items.

Improvements in a person's financial position are the result of:

Nicholas Bowman has a savings account with $825 in it.He knows that he can easily withdraw this money and spend it whenever he wishes.This would be an example of:

Copies of tax returns and supporting data should be kept for ________ year(s).

Financial experts recommend monthly savings of:

Kyle Burroughs has decided to put $30 more per week in his savings account.He knows this will reduce his ability to go out to eat each week but thinks building his emergency fund is important.This would be an example of:

Your aunt gives you some money for your birthday and you decide to put it into your savings account instead of spending it.The trade-off of not being able to spend the money now is an example of ________ cost.

What types of financial records and documents should be kept in a safe deposit box?

For January,Beth Rhodes had cash inflows of $3,500 and cash outflows of $4,050,resulting in a:

Which of the following is typically considered to be a personal and employment record?

Which of the following are considered to be personal financial statements?

When it comes to savings,most Americans:

A decrease in net worth could be the result of:

An organized system of financial records provides a basis for:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters

Exam 3: Money Management Strategy: Financial Statements and Budgeting

A personal balance sheet reports your personal income and expenditures.

The amount of income that a person or household has available to spend after deductions for taxes and other items is called:

Take-home pay is a person's earnings after deductions for taxes and other items.

Improvements in a person's financial position are the result of:

Nicholas Bowman has a savings account with $825 in it.He knows that he can easily withdraw this money and spend it whenever he wishes.This would be an example of:

Copies of tax returns and supporting data should be kept for ________ year(s).

Financial experts recommend monthly savings of:

Kyle Burroughs has decided to put $30 more per week in his savings account.He knows this will reduce his ability to go out to eat each week but thinks building his emergency fund is important.This would be an example of:

Your aunt gives you some money for your birthday and you decide to put it into your savings account instead of spending it.The trade-off of not being able to spend the money now is an example of ________ cost.

What types of financial records and documents should be kept in a safe deposit box?

For January,Beth Rhodes had cash inflows of $3,500 and cash outflows of $4,050,resulting in a:

Which of the following is typically considered to be a personal and employment record?

Which of the following are considered to be personal financial statements?

When it comes to savings,most Americans:

A decrease in net worth could be the result of:

An organized system of financial records provides a basis for:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters