Exam 2: Measuring Your Financial Health and Making a Plan

Henry currently has $1250 in monetary assets and also has $1250 in current liabilities. What is his current ratio?

An expenditure over which you have no control and are obligated to make is a

George and Betty, a middle-aged couple, have watched their savings account dwindle over the years. They both make good incomes and can't understand why they aren't saving more each month. Below is their financial information to complete an income statement. Gross monthly income: $8,000 Income taxes withheld monthly: $2,300 Monthly interest income from investments: $100 Monthly insurance payments: $700 Monthly housing expenses: $4,500 Monthly food expenses: $800 Miscellaneous expenses: $400 -What is their current savings ratio?

What are the four choices in managing your financial affairs?

Using financial ratios helps you quickly compare and analyze the raw data found in your personal income statement and balance sheet.

Assets that you purchase for the purpose of accumulating wealth to satisfy your financial goals are called

Hector and Maria Montez are trying to figure out their current financial health. They have listed the following items from their most recent statements. They will pay off their car loan in three years. Their gross household income is $3,800 per month. They receive $75 month in interest income from their investments. Savings account: $1,200 Checking account: $800 Credit card balance: $1,000 Car loan balance: $12,000 Car market value: $8,000 Furniture; market value: $2,000 Stocks and bonds: $10,000 -What is their month's living expenses covered ratio?

How would an income statement benefit one in creating a financial plan?

Prepare a list of questions to ask a prospective financial planner you are considering.

Leroy went shopping today and used his Visa card to buy a new sweater. He wrote a personal check to pay for a new video game. He bought some snack food using cash. Which of these purchases are difficult to track and monitor on his budget?

Before you can hope to achieve your financial goals, you will need to first measure your current financial health and develop a plan and a budget.

Explain the relationship between the debt ratio and insolvency?

The purpose of using financial ratios is to

An expenditure over which you have no control, are obligated to make, and is generally at a constant level each month is called a ________ expenditure.

A debt ratio is aimed at determining if you have adequate liquidity to meet emergencies.

Current liabilities are those that can typically be paid off in full within twelve months.

Which of the following might be found on an income statement?

Which of the following financial documents would you to use to create a financial plan?

One of the following items would not go on a balance sheet. Which one is it?

Fair market value refers to