Question 1

Items on the balance sheet that represent amounts owed to others are termed

Accepted Answer

A)  assets. 
B)  liabilities. 
C)  revenues. 
D)  expenses. 
E)  none of the above 
A)  assets. 
B)  liabilities. 
C)  revenues. 
D)  expenses. 
E)  none of the above

Question 2

Below are several people and their current ratios. If they were to lose their jobs today, which one would probably experience financial stress and pressures the quickest?

Accepted Answer

A)  Elmo has a current ratio of 0.5 times. 
B)  Andy has a current ratio of 2.1 times. 
C)  Dee has a current ratio of 1 time. 
D)  There is not enough information to answer this question 
A)  Elmo has a current ratio of 0.5 times. 
B)  Andy has a current ratio of 2.1 times. 
C)  Dee has a current ratio of 1 time. 
D)  There is not enough information to answer this question

Question 3

In some cases insolvency can lead to bankruptcy.

Accepted Answer

A) True 
 B)False

Question 4

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 George and Betty's net income?

Accepted Answer

A)  $1,700 
B)  $(600) 
C)  $(500) 
D)  $1600 
E)  Not enough information available to answer question. 
A)  $1,700 
B)  $(600) 
C)  $(500) 
D)  $1600 
E)  Not enough information available to answer question.

Question 5

Under what conditions should people hire a professional financial planner?

Accepted Answer

A)  when they need someone to improve or validate the plan they prepared themselves 
B)  when they start receiving late payment penalties from their creditors 
C)  when it is apparent their financial planning skills are limited 
D)  when they run into complex tax or legal issues 
E)  all of the above 
A)  when they need someone to improve or validate the plan they prepared themselves 
B)  when they start receiving late payment penalties from their creditors 
C)  when it is apparent their financial planning skills are limited 
D)  when they run into complex tax or legal issues 
E)  all of the above

Question 6

As long as a financial planner is certified you need not worry about his ability to provide you with the correct financial plan for your situation.

Accepted Answer

A) True 
 B)False

Question 7

A physical asset, such as furniture or a car, is called a(n) ________.

Accepted Answer

A)  tangible asset 
B)  financial asset 
C)  investment 
D)  liability 
E)  none of the above 
A)  tangible asset 
B)  financial asset 
C)  investment 
D)  liability 
E)  none of the above

Question 8

A plan for controlling and forecasting your cash inflows and cash outflows is called a(n) ________.

Accepted Answer

A)  income statement 
B)  balance sheet 
C)  cash budget 
D)  statement of changes in financial position 
E)  none of the above 
A)  income statement 
B)  balance sheet 
C)  cash budget 
D)  statement of changes in financial position 
E)  none of the above

Items on the balance sheet that represent amounts owed to others are termed

Below are several people and their current ratios. If they were to lose their jobs today, which one would probably experience financial stress and pressures the quickest?

In some cases insolvency can lead to bankruptcy.

Under what conditions should people hire a professional financial planner?

As long as a financial planner is certified you need not worry about his ability to provide you with the correct financial plan for your situation.

A physical asset, such as furniture or a car, is called a(n) ________.

A plan for controlling and forecasting your cash inflows and cash outflows is called a(n) ________.

The Financial Planning Process

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

Exam 2: Measuring Your Financial Health and Making a Plan

Items on the balance sheet that represent amounts owed to others are termed

Below are several people and their current ratios. If they were to lose their jobs today, which one would probably experience financial stress and pressures the quickest?

In some cases insolvency can lead to bankruptcy.

Under what conditions should people hire a professional financial planner?

As long as a financial planner is certified you need not worry about his ability to provide you with the correct financial plan for your situation.

A physical asset, such as furniture or a car, is called a(n) ________.

A plan for controlling and forecasting your cash inflows and cash outflows is called a(n) ________.

The Financial Planning Process

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters