Exam 2: Measuring Your Financial Health and Making a Plan

Jorge has a debt ratio of 37 percent and Jose has a ratio of 102 percent.They both have the same take-home pay every month.How can we describe their current financial situation?

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

Your ________ is found by dividing monetary assets by current liabilities and is a good measure of liquidity.

An estimate of your anticipated after-tax income available for living expenses is commonly called take-home pay.

________ can be more than or less than the price you paid for a given asset,depending on what others are willing to pay for that asset today.

Commission-only planners charge fees and collect commissions on products they recommend.

A personal income statement is prepared

Suppose that you have been operating an online marketing business out of your home,and the business has recently expanded beyond belief.Since you have neglected your personal finances for some time,what would you do as a first step?

Tim and Autumn Davis Tim and Autumn Davis are trying to figure out their current financial health. They will pay off their car loan in three years, their gross household income is $5,700 per month, and they receive $95 per month in interest income from their investments. They have listed the following items from their most recent statements. Savings account: $3,200 Checking account: $1,800 Credit card balance: $3,000 Car loan balance: $18,000 Car market value: $15,000 Furniture market value: $4,000 Stocks and bonds: $15,000 -What is their debt ratio?

What are the four choices in managing your financial affairs?

A budget is a process of setting spending goals for the upcoming month or year.

Which of the following would be included on a personal income statement?

Which of the following are not typically found on a balance sheet?

A vehicle leased in your name is an example of a tangible asset that you would list on your balance sheet.

The term "fair market value" refers to how the price of an asset has changed since its original purchase.

A statement that records where your money has come from and where it has gone over some period of time is called a(n)

From her annual salary of $72,000,Kierstan has $5,700 automatically deducted for insurance on an annual basis.Additionally,$9,000 is deducted each year in taxes.When preparing her personal income statement,what figure should Kierstan enter for her income?