Question 1

The savings ratio indicates the percentage of after-tax income that is saved.

Accepted Answer

A) True 
 B)False

Question 2

One should quickly make important financial decisions soon after a financial shock,such as death or divorce.

Accepted Answer

A) True 
 B)False

Question 3

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 4

The best way to balance your budget is to increase borrowing.

Accepted Answer

A) True 
 B)False

Question 5

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 6

____ would be an example of a periodic expense.

Accepted Answer

A)  Food 
B)  Vacation 
C)  Utilities 
D)  Taxes 
E)  none of these 
A)  Food 
B)  Vacation 
C)  Utilities 
D)  Taxes 
E)  none of these

Question 7

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

Question 8

A budget is a detailed statement of what income and expenses occurred over a past period.

Accepted Answer

A) True 
 B)False

Question 9

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.
-[Present | Future] value is the value today of an amount to be received in the future.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 10

Budgeting and record keeping are really the same activity.

Accepted Answer

A) True 
 B)False

Question 11

When the income statement indicates a surplus,this may be used to increase net worth by increasing assets or decreasing liabilities.

Accepted Answer

A) True 
 B)False

Question 12

The Hamptons want to have $1,750,000 for their retirement in 30 years.How much should they save annually if they think they can earn 8% on their investments?

Accepted Answer

The answer of The Hamptons want to have $1,750,000 for...

Question 13

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.
-If you liquidate assets or borrow to make your budget balance,this will [increase | decrease] your net worth.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 14

You have a balanced budget when total income for the year equals or exceeds total expenditures for the year.

Accepted Answer

A) True 
 B)False

Question 15

Budgets are

Accepted Answer

A)  restrictive. 
B)  complicated. 
C)  are forward looking. 
D)  permanent. 
E)  unnecessary. 
A)  restrictive. 
B)  complicated. 
C)  are forward looking. 
D)  permanent. 
E)  unnecessary.

Question 16

Your total cash income is $80,000.You pay $8,000 in taxes and $60,000 in other expenses.Your savings ratio is

Accepted Answer

A)  10.0% 
B)  14.3% 
C)  15.0%. 
D)  16.7%. 
E)  17.5%. 
A)  10.0% 
B)  14.3% 
C)  15.0%. 
D)  16.7%. 
E)  17.5%.

Question 17

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.
-Investment assets are required to [earn a return | provide a service].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 18

The income and expenditures statement provides a measure of financial performance over a period of time.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is among the four categories accounting for almost three-quarters of consumer spending?

Accepted Answer

A)  Personal insurance and pensions 
B)  Clothing 
C)  Utilities 
D)  Entertainment 
E)  Medical 
A)  Personal insurance and pensions 
B)  Clothing 
C)  Utilities 
D)  Entertainment 
E)  Medical

Question 20

The savings ratio is useful in the evaluation of the balance sheet.

Accepted Answer

A) True 
 B)False

The savings ratio indicates the percentage of after-tax income that is saved.

One should quickly make important financial decisions soon after a financial shock,such as death or divorce.

The three parts of your balance sheet are

The best way to balance your budget is to increase borrowing.

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

____ would be an example of a periodic expense.

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

A budget is a detailed statement of what income and expenses occurred over a past period.

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. -[Present | Future] value is the value today of an amount to be received in the future.

Budgeting and record keeping are really the same activity.

When the income statement indicates a surplus,this may be used to increase net worth by increasing assets or decreasing liabilities.

The Hamptons want to have $1,750,000 for their retirement in 30 years.How much should they save annually if they think they can earn 8% on their investments?

You have a balanced budget when total income for the year equals or exceeds total expenditures for the year.

Budgets are

Your total cash income is $80,000.You pay $8,000 in taxes and $60,000 in other expenses.Your savings ratio is

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. -Investment assets are required to [earn a return | provide a service].

The income and expenditures statement provides a measure of financial performance over a period of time.

Which of the following is among the four categories accounting for almost three-quarters of consumer spending?

The savings ratio is useful in the evaluation of the balance sheet.

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: Using Financial Statements and Budgets

The savings ratio indicates the percentage of after-tax income that is saved.

One should quickly make important financial decisions soon after a financial shock,such as death or divorce.

The three parts of your balance sheet are

The best way to balance your budget is to increase borrowing.

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

____ would be an example of a periodic expense.

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

A budget is a detailed statement of what income and expenses occurred over a past period.

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. -[Present | Future] value is the value today of an amount to be received in the future.

Budgeting and record keeping are really the same activity.

When the income statement indicates a surplus,this may be used to increase net worth by increasing assets or decreasing liabilities.

The Hamptons want to have $1,750,000 for their retirement in 30 years.How much should they save annually if they think they can earn 8% on their investments?

You have a balanced budget when total income for the year equals or exceeds total expenditures for the year.

Budgets are

Your total cash income is $80,000.You pay $8,000 in taxes and $60,000 in other expenses.Your savings ratio is

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. -Investment assets are required to [earn a return | provide a service].

The income and expenditures statement provides a measure of financial performance over a period of time.

Which of the following is among the four categories accounting for almost three-quarters of consumer spending?

The savings ratio is useful in the evaluation of the balance sheet.

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