Question 1

A cash-flow statement is also known as a(n) ____ statement.

Accepted Answer

A) income and expense 
B) net worth 
C) taxable income 
D) asset-and-liability 
A) income and expense 
B) net worth 
C) taxable income 
D) asset-and-liability

Question 2

Reducing the number of bank and credit accounts that each partner brings into the marriage can save money on account fees.

Accepted Answer

A) True 
 B)False

Question 3

Budgeting gives one control over his or her finances.

Accepted Answer

A) True 
 B)False

Question 4

Wendy Wilson,a successful college graduate,is currently employed in a position paying $49,500 a year.Wendy's annual living expenses are only $42,000 so she has accumulated $7,200 in monetary assets and $27,000 in investment assets since her graduation.Use the liquidity ratio to figure how long Wendy could pay expenses if she were to lose her job.

Accepted Answer

A) Less than three weeks 
B) About two months 
C) Approximately seven months 
D) Approximately eleventh months 
A) Less than three weeks 
B) About two months 
C) Approximately seven months 
D) Approximately eleventh months

Question 5

There should be enough money in a revolving savings fund to

Accepted Answer

A) pay all short-term debt. 
B) avoid running out of money. 
C) pay all fixed expenditures. 
D) pay for all long-term goals. 
A) pay all short-term debt. 
B) avoid running out of money. 
C) pay all fixed expenditures. 
D) pay for all long-term goals.

Question 6

A successful financial plan includes

Accepted Answer

A) specified values that underlie the plan. 
B) explicitly stated financial goals. 
C) logical and consistent financial strategies. 
D) all of these. 
A) specified values that underlie the plan. 
B) explicitly stated financial goals. 
C) logical and consistent financial strategies. 
D) all of these.

Question 7

Disposable income is income

Accepted Answer

A) before taxes. 
B) after all employer withholding including taxes. 
C) after all employer withholding except taxes. 
D) minus fixed expenditures. 
A) before taxes. 
B) after all employer withholding including taxes. 
C) after all employer withholding except taxes. 
D) minus fixed expenditures.

Question 8

Reconciling budget estimates includes reconciling conflicting needs and wants.

Accepted Answer

A) True 
 B)False

Question 9

Keeping track of all income and expenses is very important to achieving your financial objectives.

Accepted Answer

A) True 
 B)False

Question 10

A cash-flow statement shows the value of your assets and liabilities as of a specific date.

Accepted Answer

A) True 
 B)False

Question 11

The Thomas family projects a budget deficit of $250 in January and $450 in February with surpluses the rest of the year.Their revolving savings fund should be at least

Accepted Answer

A) $700. 
B) $450. 
C) $350. 
D) $250. 
A) $700. 
B) $450. 
C) $350. 
D) $250.

Question 12

Financial planning is a single,customized plan regarding a person's financial affairs.

Accepted Answer

A) True 
 B)False

Question 13

Child support received,Social Security benefits,and public assistance are all examples of

Accepted Answer

A) expenses. 
B) assets. 
C) income. 
D) both assets and income. 
A) expenses. 
B) assets. 
C) income. 
D) both assets and income.

Question 14

Tangible assets are assets whose primary purpose is to provide maintenance of a lifestyle.

Accepted Answer

A) True 
 B)False

Question 15

A net surplus at the end of the month could be

Accepted Answer

A) used to pay down credit card debt. 
B) invested in a retirement account. 
C) carried forward to the next month. 
D) all of these. 
A) used to pay down credit card debt. 
B) invested in a retirement account. 
C) carried forward to the next month. 
D) all of these.

Question 16

A balance sheet includes ____,____,and ____.

Accepted Answer

A) income; expenses; net worth 
B) assets; expenses; liabilities 
C) income; liabilities; net worth 
D) assets; liabilities; net worth 
A) income; expenses; net worth 
B) assets; expenses; liabilities 
C) income; liabilities; net worth 
D) assets; liabilities; net worth

Question 17

When budgeting,recordkeeping is the process of recording the sources and amount of dollars earned and spent.

Accepted Answer

A) True 
 B)False

Question 18

Using a budget design that keeps a declining balance helps one

Accepted Answer

A) control credit purchases 
B) code expenses. 
C) monitor unexpended balances. 
D) use subordinate budgets. 
A) control credit purchases 
B) code expenses. 
C) monitor unexpended balances. 
D) use subordinate budgets.

Question 19

The advantages of having organized financial records include

Accepted Answer

A) helping you save money as well as make money. 
B) helping you take advantage of all available tax deductions. 
C) enabling you to review the results of financial transactions. 
D) all of these. 
A) helping you save money as well as make money. 
B) helping you take advantage of all available tax deductions. 
C) enabling you to review the results of financial transactions. 
D) all of these.

Question 20

Safe-deposit boxes take two keys to open,and the financial institution where the box is located keeps one of these keys.

Accepted Answer

A) True 
 B)False

A cash-flow statement is also known as a(n) ____ statement.

Reducing the number of bank and credit accounts that each partner brings into the marriage can save money on account fees.

Budgeting gives one control over his or her finances.

There should be enough money in a revolving savings fund to

A successful financial plan includes

Disposable income is income

Reconciling budget estimates includes reconciling conflicting needs and wants.

Keeping track of all income and expenses is very important to achieving your financial objectives.

A cash-flow statement shows the value of your assets and liabilities as of a specific date.

The Thomas family projects a budget deficit of $250 in January and $450 in February with surpluses the rest of the year.Their revolving savings fund should be at least

Financial planning is a single,customized plan regarding a person's financial affairs.

Child support received,Social Security benefits,and public assistance are all examples of

Tangible assets are assets whose primary purpose is to provide maintenance of a lifestyle.

A net surplus at the end of the month could be

A balance sheet includes ,,and .

When budgeting,recordkeeping is the process of recording the sources and amount of dollars earned and spent.

Using a budget design that keeps a declining balance helps one

The advantages of having organized financial records include

Safe-deposit boxes take two keys to open,and the financial institution where the box is located keeps one of these keys.

Understanding Personal Finance

Career Planning

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

Exam 3: Financial Statements,tools,and Budgets

A cash-flow statement is also known as a(n) ____ statement.

Reducing the number of bank and credit accounts that each partner brings into the marriage can save money on account fees.

Budgeting gives one control over his or her finances.

There should be enough money in a revolving savings fund to

A successful financial plan includes

Disposable income is income

Reconciling budget estimates includes reconciling conflicting needs and wants.

Keeping track of all income and expenses is very important to achieving your financial objectives.

A cash-flow statement shows the value of your assets and liabilities as of a specific date.

The Thomas family projects a budget deficit of $250 in January and $450 in February with surpluses the rest of the year.Their revolving savings fund should be at least

Financial planning is a single,customized plan regarding a person's financial affairs.

Child support received,Social Security benefits,and public assistance are all examples of

Tangible assets are assets whose primary purpose is to provide maintenance of a lifestyle.

A net surplus at the end of the month could be

A balance sheet includes ____,____,and ____.

When budgeting,recordkeeping is the process of recording the sources and amount of dollars earned and spent.

Using a budget design that keeps a declining balance helps one

The advantages of having organized financial records include

Safe-deposit boxes take two keys to open,and the financial institution where the box is located keeps one of these keys.

Understanding Personal Finance

Career Planning

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

A balance sheet includes ,,and .