Exam 2: Planning With Personal Financial Statements

Budgeting is a starting point for developing your financial plan. A good understanding of cash inflows and outflows, or what you make and spend is essential. Describe one way to increase your cash inflows and one way to decrease your personal outflows.

(Essay)

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Question 41

Paying cash for an Alaskan cruise would

(Multiple Choice)

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Question 42

The cash flow statement reports a person's or family's

(Multiple Choice)

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Question 43

The only sources of cash outflows for most people are

(Multiple Choice)

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Question 44

Cash inflows tend to be higher for younger individuals and lower for individuals in their 50s.

(True/False)

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Question 45

Which of the following will not increase your net worth?

(Multiple Choice)

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Question 46

A cash flow statement that is based on forecasted cash flows for a future time period is called a(n)

(Multiple Choice)

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Question 47

Nancy has $40,000 of annual disposable income and saves $8,000 a year. Her savings rate is

(Multiple Choice)

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Question 48

Judy has cash inflows of $3,000 for the month of June. Her expenses or cash outflows were $4,000. What is her net cash flow? List two options for Judy to meet her financial obligations in June. What is the effect (increase or decrease) of these options on her assets and liabilities?

(Essay)

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Question 49

Creating a cash flow statement requires that you determine

(Multiple Choice)

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Question 50

If you have liquid assets of $20,000 and current liabilities of $10,000, then you

(Multiple Choice)

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Question 51

If your monthly disposable income equals $1,500 and you currently save $500/month, your savings rate is ________.

(Short Answer)

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Question 52

David's liquidity ratio is 3.0. He has $1,000 in current liabilities. Therefore, he has ________ worth of liquid assets.

(Multiple Choice)

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Question 53

Individuals who switch from a low-demand industry to a high-demand industry usually earn higher incomes.

(True/False)

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Question 54

Lucky Louie has the following cash inflows and outflows: $500 rent, $200 car payment, $100 car repair, $100 discretionary purchases, $300 food, $150 electric bill, $3,500 monthly salary after deductions for tax, etc., $200 cell phone, $400 repayment of loan to dad, and $500 planned spending on weekend fun. What is Lucky's net cash flow?

(Multiple Choice)

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Question 55

Analyzing your expected income and expenses over the coming 6 months is

(Multiple Choice)

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Question 56

A low liquidity ratio means that

(Multiple Choice)

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Question 57

A document that shows your cash inflows and cash outflows is called a(n) ________.

(Short Answer)

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Question 58

Balance sheet assets should be valued at

(Multiple Choice)

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Question 59

Which factor affects a household's cash flows?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 125

Budgeting is a starting point for developing your financial plan. A good understanding of cash inflows and outflows, or what you make and spend is essential. Describe one way to increase your cash inflows and one way to decrease your personal outflows.

Paying cash for an Alaskan cruise would

The cash flow statement reports a person's or family's

The only sources of cash outflows for most people are

Cash inflows tend to be higher for younger individuals and lower for individuals in their 50s.

Which of the following will not increase your net worth?

A cash flow statement that is based on forecasted cash flows for a future time period is called a(n)

Nancy has $40,000 of annual disposable income and saves $8,000 a year. Her savings rate is

Judy has cash inflows of $3,000 for the month of June. Her expenses or cash outflows were $4,000. What is her net cash flow? List two options for Judy to meet her financial obligations in June. What is the effect (increase or decrease) of these options on her assets and liabilities?

Creating a cash flow statement requires that you determine

If you have liquid assets of $20,000 and current liabilities of $10,000, then you

If your monthly disposable income equals $1,500 and you currently save $500/month, your savings rate is ________.

David's liquidity ratio is 3.0. He has $1,000 in current liabilities. Therefore, he has ________ worth of liquid assets.

Individuals who switch from a low-demand industry to a high-demand industry usually earn higher incomes.

Analyzing your expected income and expenses over the coming 6 months is

A low liquidity ratio means that

A document that shows your cash inflows and cash outflows is called a(n) ________.

Balance sheet assets should be valued at

Which factor affects a household's cash flows?

Overview of a Financial Plan

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

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