Exam 2: Planning With Personal Financial Statements

In budgeting, it is useful to compare ________ with the budgeted amounts to determine the accuracy or error of the budget and adjust it as necessary.

Which of the following is not an asset you might find on a personal balance sheet?

Which cash inflow is more likely to be discontinued after retirement?

Your current liquidity ratio is 2.0. If you take money out of your savings account to pay off a credit card your liquidity ratio will

How would you assess the accuracy of your budget?

In the balance sheet, a(n) ________ in assets ________ net worth.

Long-term liabilities are debts that will be paid at least three years into the future.

When you retire, which of the following will be key sources of cash flow?

The amount you would receive if you sold an asset today is called the asset's

Many individuals tend to ________ their cash inflows and ________ their outflows.

If Kim's current debt ratio is 45%, this means that ________ of Kim's assets are purchased on credit.

The most common error people make is to underestimate cash inflows and overestimate cash outflows.

If you sell stock from your portfolio to pay off your car loan, your debt ratio of 0.5 will

A personal balance sheet is comprised of

Your cash outflows are equal to your liabilities such as the amount you owe on your car or home.

Which of the following is not a key budgeting influence for a personal financial plan?

A personal balance sheet summarizes

One advantage of budgeting several months in advance is that you will be warned of potential deficiencies and can determine how to cover them.

Which of the following will increase your debt?

Which of the following is not a liquid asset?