Question 1

Describe the main components and purpose of a personal balance sheet and a cash flow statement?

Accepted Answer

A personal balance sheet reports the cur

Question 2

This month,Kenneth Goldberg has cash inflows of $2,950 and cash outflows of $2,800,resulting in a:

Accepted Answer

A) balanced budget. 
B) surplus of $150. 
C) deficit of $150. 
D) surplus of $2,950. 
E) deficit of $2,800. 
A) balanced budget. 
B) surplus of $150. 
C) deficit of $150. 
D) surplus of $2,950. 
E) deficit of $2,800.

Question 3

Which of the following items is something that would typically not be stored in a safe deposit box?

Accepted Answer

A) Rare coins 
B) Passport 
C) Car title 
D) Birth certificate 
E) Bank statements 
A) Rare coins 
B) Passport 
C) Car title 
D) Birth certificate 
E) Bank statements

Question 4

A budget deficit would result when a person's or family's:

Accepted Answer

A) actual spending is less than planned spending. 
B) actual spending is greater than planned spending. 
C) actual spending equals planned spending. 
D) assets exceed liabilities. 
E) net worth decreases. 
A) actual spending is less than planned spending. 
B) actual spending is greater than planned spending. 
C) actual spending equals planned spending. 
D) assets exceed liabilities. 
E) net worth decreases.

Question 5

Patricia McDonald has determined the following information about her own financial situation.Her checking account is worth $545 and her savings account is worth $1,000.She owns her own home that has a market value of $119,000.She has furniture and appliances worth $8,500 and a laptop worth $1,200.She has a car worth $9,700 and owes $8,200 on her auto loan.She has also purchased some stock worth $5,500 and she has a retirement account worth $27,655.What is the total value of her assets?

Accepted Answer

A) $1,545 
B) $119,000 
C) $27,800 
D) $44,050 
E) $173,100 
A) $1,545 
B) $119,000 
C) $27,800 
D) $44,050 
E) $173,100

Question 6

For many years,the United States has ranked highest among industrial nations in savings rate.

Accepted Answer

A) True 
 B)False

Question 7

George Green has determined that the amount of money he spends on his mortgage payment,car loan payment,and home insurance payment totals $1,200 every month.What type of expenses has George determined with this calculation?

Accepted Answer

A) Current liabilities 
B) Long-term liabilities 
C) Net worth 
D) Variable expenses 
E) Fixed expenses 
A) Current liabilities 
B) Long-term liabilities 
C) Net worth 
D) Variable expenses 
E) Fixed expenses

Question 8

Kathy Thompson has determined that the value of her assets is $64,000 and the value of her debts is $23,000.The difference between these two is $41,000.The $41,000 could be referred to as her:

Accepted Answer

A) nest egg. 
B) total assets. 
C) adjusted assets. 
D) debt equity. 
E) net worth. 
A) nest egg. 
B) total assets. 
C) adjusted assets. 
D) debt equity. 
E) net worth.

Question 9

Cash and other tangible property (with a monetary value)that you own are referred to as:

Accepted Answer

A) liabilities. 
B) variable expenses. 
C) net worth. 
D) income. 
E) assets. 
A) liabilities. 
B) variable expenses. 
C) net worth. 
D) income. 
E) assets.

Question 10

A cash flow statement reports a person's or a family's:

Accepted Answer

A) net worth. 
B) cash receipts and payments. 
C) plan for spending. 
D) value of investments. 
E) balance of savings. 
A) net worth. 
B) cash receipts and payments. 
C) plan for spending. 
D) value of investments. 
E) balance of savings.

Question 11

Which of the following payments would be considered a variable expense?

Accepted Answer

A) Rent 
B) Installment loan payment 
C) Mortgage payment 
D) Monthly train ticket for commuting to work 
E) Electricity bill 
A) Rent 
B) Installment loan payment 
C) Mortgage payment 
D) Monthly train ticket for commuting to work 
E) Electricity bill

Question 12

A person's net worth is the difference between the value of the items owned and the amounts owed to others.

Accepted Answer

A) True 
 B)False

Question 13

Flexible payments that change from month to month are referred to as:

Accepted Answer

A) variable expenses. 
B) fixed expenses. 
C) cash flow. 
D) insolvency. 
E) budget variance. 
A) variable expenses. 
B) fixed expenses. 
C) cash flow. 
D) insolvency. 
E) budget variance.

Question 14

The 50/30/20 financial rule of thumb suggests that 20 percent of income be used for:

Accepted Answer

A) necessities. 
B) wants. 
C) savings. 
D) car buying. 
E) education. 
A) necessities. 
B) wants. 
C) savings. 
D) car buying. 
E) education.

Question 15

Opportunity costs refer to:

Accepted Answer

A) current spending habits. 
B) changing economic conditions that affect a person's cost of living. 
C) storage facilities to make financial documents easily available. 
D) trade-offs associated with money management decisions. 
E) avoiding the use of consumer credit. 
A) current spending habits. 
B) changing economic conditions that affect a person's cost of living. 
C) storage facilities to make financial documents easily available. 
D) trade-offs associated with money management decisions. 
E) avoiding the use of consumer credit.

Question 16

Leeanna Roberts uses a computer to organize her personal financial records and update her budget activities.These activities are an example of:

Accepted Answer

A) money management. 
B) an opportunity cost. 
C) a balance sheet. 
D) creative accounting. 
E) electronic analysis. 
A) money management. 
B) an opportunity cost. 
C) a balance sheet. 
D) creative accounting. 
E) electronic analysis.

Question 17

Money management refers to long-term investment decisions.

Accepted Answer

A) True 
 B)False

Question 18

The 50/30/20 financial rule of thumb suggests that 50 percent of income be used for:

Accepted Answer

A) necessities. 
B) wants. 
C) savings. 
D) car buying. 
E) education. 
A) necessities. 
B) wants. 
C) savings. 
D) car buying. 
E) education.

Question 19

Which of the following financial documents would most likely be stored in a safe-deposit box?

Accepted Answer

A) W-2 forms 
B) Personal financial statements 
C) Warranties 
D) Birth certificates 
E) Checking account statements 
A) W-2 forms 
B) Personal financial statements 
C) Warranties 
D) Birth certificates 
E) Checking account statements

Question 20

Payments that do not vary from month to month are ________ expenses.

Accepted Answer

A) fixed 
B) usage 
C) variable 
D) luxury 
E) output 
A) fixed 
B) usage 
C) variable 
D) luxury 
E) output

Describe the main components and purpose of a personal balance sheet and a cash flow statement?

This month,Kenneth Goldberg has cash inflows of $2,950 and cash outflows of $2,800,resulting in a:

Which of the following items is something that would typically not be stored in a safe deposit box?

A budget deficit would result when a person's or family's:

For many years,the United States has ranked highest among industrial nations in savings rate.

George Green has determined that the amount of money he spends on his mortgage payment,car loan payment,and home insurance payment totals $1,200 every month.What type of expenses has George determined with this calculation?

Kathy Thompson has determined that the value of her assets is $64,000 and the value of her debts is $23,000.The difference between these two is $41,000.The $41,000 could be referred to as her:

Cash and other tangible property (with a monetary value)that you own are referred to as:

A cash flow statement reports a person's or a family's:

Which of the following payments would be considered a variable expense?

A person's net worth is the difference between the value of the items owned and the amounts owed to others.

Flexible payments that change from month to month are referred to as:

The 50/30/20 financial rule of thumb suggests that 20 percent of income be used for:

Opportunity costs refer to:

Leeanna Roberts uses a computer to organize her personal financial records and update her budget activities.These activities are an example of:

Money management refers to long-term investment decisions.

The 50/30/20 financial rule of thumb suggests that 50 percent of income be used for:

Which of the following financial documents would most likely be stored in a safe-deposit box?

Payments that do not vary from month to month are ________ expenses.

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

Describe the main components and purpose of a personal balance sheet and a cash flow statement?

This month,Kenneth Goldberg has cash inflows of $2,950 and cash outflows of $2,800,resulting in a:

Which of the following items is something that would typically not be stored in a safe deposit box?

A budget deficit would result when a person's or family's:

For many years,the United States has ranked highest among industrial nations in savings rate.

George Green has determined that the amount of money he spends on his mortgage payment,car loan payment,and home insurance payment totals $1,200 every month.What type of expenses has George determined with this calculation?

Kathy Thompson has determined that the value of her assets is $64,000 and the value of her debts is $23,000.The difference between these two is $41,000.The $41,000 could be referred to as her:

Cash and other tangible property (with a monetary value)that you own are referred to as:

A cash flow statement reports a person's or a family's:

Which of the following payments would be considered a variable expense?

A person's net worth is the difference between the value of the items owned and the amounts owed to others.

Flexible payments that change from month to month are referred to as:

The 50/30/20 financial rule of thumb suggests that 20 percent of income be used for:

Opportunity costs refer to:

Leeanna Roberts uses a computer to organize her personal financial records and update her budget activities.These activities are an example of:

Money management refers to long-term investment decisions.

The 50/30/20 financial rule of thumb suggests that 50 percent of income be used for:

Which of the following financial documents would most likely be stored in a safe-deposit box?

Payments that do not vary from month to month are ________ expenses.

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