Question 1

One of the main purposes of personal financial statements is to:

Accepted Answer

A) Report your future financial position relating to the value of items owned and owed. 
B) Measure your progress toward financial goals. 
C) Maintain information about your professional work activities. 
D) Provide data you can use when rating a restaurant. 
E) Provide data you can use when applying for a job. 
A) Report your future financial position relating to the value of items owned and owed. 
B) Measure your progress toward financial goals. 
C) Maintain information about your professional work activities. 
D) Provide data you can use when rating a restaurant. 
E) Provide data you can use when applying for a job.

Question 2

A home file should be used for:

Accepted Answer

A) storing all financial documents and records. 
B) financial records for current needs. 
C) documents that require maximum security. 
D) obsolete financial documents. 
E) records that are difficult to replace. 
A) storing all financial documents and records. 
B) financial records for current needs. 
C) documents that require maximum security. 
D) obsolete financial documents. 
E) records that are difficult to replace.

Question 3

Total earnings of a person minus the deductions for taxes and other items is called:

Accepted Answer

A) budgeted income. 
B) gross pay. 
C) net worth. 
D) total revenue. 
E) take-home pay. 
A) budgeted income. 
B) gross pay. 
C) net worth. 
D) total revenue. 
E) take-home pay.

Question 4

Financial goals should take a SMART approach with goals that are:

Accepted Answer

A) Time-based. 
B) Realistic. 
C) Action-oriented. 
D) Specific and Measurable. 
E) All of these 
A) Time-based. 
B) Realistic. 
C) Action-oriented. 
D) Specific and Measurable. 
E) All of these

Question 5

A family with $50,000 in assets and $22,000 of liabilities would have a net worth of:

Accepted Answer

A) $50,000. 
B) $28,000. 
C) $22,000. 
D) $67,000. 
E) $41,000. 
A) $50,000. 
B) $28,000. 
C) $22,000. 
D) $67,000. 
E) $41,000.

Question 6

The debt ratio is calculated as:

Accepted Answer

A) Net worth divided by liabilities. 
B) Monthly credit payments divided by take-home pay. 
C) Liabilities divided by assets. 
D) Liquid assets divided by current liabilities. 
E) Liquid assets divided by monthly expenses. 
A) Net worth divided by liabilities. 
B) Monthly credit payments divided by take-home pay. 
C) Liabilities divided by assets. 
D) Liquid assets divided by current liabilities. 
E) Liquid assets divided by monthly expenses.

Question 7

Funds set aside for retirement is an example of a(n)________ asset.

Accepted Answer

A) personal 
B) common 
C) investment 
D) household 
E) budgeted 
A) personal 
B) common 
C) investment 
D) household 
E) budgeted

Question 8

A person with erratic or seasonal income may need an emergency fund of ________ months or more.

Accepted Answer

A) 2 
B) 3 
C) 6 
D) 10 
E) 12 
A) 2 
B) 3 
C) 6 
D) 10 
E) 12

Question 9

To determine a person's solvency,which financial document should be consulted?

Accepted Answer

A) Cash flow statement 
B) Budget 
C) Debt consolidation statement 
D) Personal balance sheet 
E) Credit report 
A) Cash flow statement 
B) Budget 
C) Debt consolidation statement 
D) Personal balance sheet 
E) Credit report

Question 10

Andrew Smith has developed a budget that he follows each month.This is a budget that he keeps in his head.He does not write anything down,nor does he use a computer to keep track of this budget.What type of budget has Andrew created?

Accepted Answer

A) Mental budget 
B) Physical budget 
C) Written budget 
D) Computerized budget 
E) Cloud budget 
A) Mental budget 
B) Physical budget 
C) Written budget 
D) Computerized budget 
E) Cloud budget

Question 11

Diane Rucker lives with her two sons,ages 6 and 9.They have had difficulty managing their finances.What purposes could a budget serve for the Ruckers? What actions would you suggest for the budgeting process to be successful?

Accepted Answer

A budget can help the Ruckers live withi

Question 12

A person's net worth is computed by:

Accepted Answer

A) adding assets and liabilities. 
B) deducting current living expenses from total assets. 
C) subtracting total liabilities from total assets. 
D) subtracting assets from current liabilities. 
E) adding liabilities and budgeted expenses. 
A) adding assets and liabilities. 
B) deducting current living expenses from total assets. 
C) subtracting total liabilities from total assets. 
D) subtracting assets from current liabilities. 
E) adding liabilities and budgeted expenses.

Question 13

Calculate the debt ratio for an individual who has $45,000 in assets and $17,500 in liabilities.

Accepted Answer

A) 0.26 
B) 2.57 
C) 0.45 
D) 0.39 
E) 1.75 
A) 0.26 
B) 2.57 
C) 0.45 
D) 0.39 
E) 1.75

One of the main purposes of personal financial statements is to:

A home file should be used for:

Total earnings of a person minus the deductions for taxes and other items is called:

Financial goals should take a SMART approach with goals that are:

A family with $50,000 in assets and $22,000 of liabilities would have a net worth of:

The debt ratio is calculated as:

Funds set aside for retirement is an example of a(n)________ asset.

A person with erratic or seasonal income may need an emergency fund of ________ months or more.

To determine a person's solvency,which financial document should be consulted?

Andrew Smith has developed a budget that he follows each month.This is a budget that he keeps in his head.He does not write anything down,nor does he use a computer to keep track of this budget.What type of budget has Andrew created?

Diane Rucker lives with her two sons,ages 6 and 9.They have had difficulty managing their finances.What purposes could a budget serve for the Ruckers? What actions would you suggest for the budgeting process to be successful?

A person's net worth is computed by:

Calculate the debt ratio for an individual who has $45,000 in assets and $17,500 in liabilities.

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

One of the main purposes of personal financial statements is to:

A home file should be used for:

Total earnings of a person minus the deductions for taxes and other items is called:

Financial goals should take a SMART approach with goals that are:

A family with $50,000 in assets and $22,000 of liabilities would have a net worth of:

The debt ratio is calculated as:

Funds set aside for retirement is an example of a(n)________ asset.

A person with erratic or seasonal income may need an emergency fund of ________ months or more.

To determine a person's solvency,which financial document should be consulted?

Andrew Smith has developed a budget that he follows each month.This is a budget that he keeps in his head.He does not write anything down,nor does he use a computer to keep track of this budget.What type of budget has Andrew created?

Diane Rucker lives with her two sons,ages 6 and 9.They have had difficulty managing their finances.What purposes could a budget serve for the Ruckers? What actions would you suggest for the budgeting process to be successful?

A person's net worth is computed by:

Calculate the debt ratio for an individual who has $45,000 in assets and $17,500 in liabilities.

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