Question 1

Opportunity costs are not only associated with money management decisions involving long-term financial security.

Accepted Answer

A) True 
 B)False

Question 2

Take-home pay is a person's earnings after deductions for taxes and other items.

Accepted Answer

A) True 
 B)False

Question 3

An organized system of financial records provides a basis for:

Accepted Answer

A) Completing required tax reports. 
B) Handling long term business affairs 
C) Handling moderate term business affairs 
D) Cash flow projections 
A) Completing required tax reports. 
B) Handling long term business affairs 
C) Handling moderate term business affairs 
D) Cash flow projections

Question 4

A person's net worth is computed by

Accepted Answer

A) subtracting total liabilities from total assets. 
B) deducting currentliving expenses from total assets. 
C) adding assets and liabilities 
D) subtracting assets from currentliabilities. 
E) adding liabilities and budgeted expenses. 
A) subtracting total liabilities from total assets. 
B) deducting currentliving expenses from total assets. 
C) adding assets and liabilities 
D) subtracting assets from currentliabilities. 
E) adding liabilities and budgeted expenses.

Question 5

A major expenditure for most families is

Accepted Answer

A) insurance. 
B) contributions. 
C) clothing. 
D) utilities. 
E) transportation. 
A) insurance. 
B) contributions. 
C) clothing. 
D) utilities. 
E) transportation.

Question 6

A personal balance sheet presents

Accepted Answer

A) items owned and amountsowed. 
B) income and expenses for a period of time. 
C) earnings on savingsand investments. 
D) amounts budgeted for spending 
E) family financial goals. 
A) items owned and amountsowed. 
B) income and expenses for a period of time. 
C) earnings on savingsand investments. 
D) amounts budgeted for spending 
E) family financial goals.

Question 7

This year Phil's gross income is $80,000.His deductions for federal and provincial taxes, CPP contributions and employment insurance are $16,000.He also had after-tax investment earnings of $6,000.Taylor's take-home pay is:

Accepted Answer

A) $80,000 
B) $86,000 
C) $70,000 
D) $64,000 
E) $58,000 
A) $80,000 
B) $86,000 
C) $70,000 
D) $64,000 
E) $58,000

Question 8

An organized system of financial records provides a basis for:

Accepted Answer

A) Determining available resources for current and future buying. 
B) Handling long term business affairs 
C) Handling moderate term business affairs 
D) Cash flow projections 
A) Determining available resources for current and future buying. 
B) Handling long term business affairs 
C) Handling moderate term business affairs 
D) Cash flow projections

Question 9

Current liabilities are amounts that must be paid within a short period of time, usually less than a year.

Accepted Answer

A) True 
 B)False

Question 10

"Sharing the bills" is a budgeting strategy for two-income households where each partner contributes an equal amount into the pool.

Accepted Answer

A) True 
 B)False

Question 11

Total earnings of a person less deductions for taxes and other items is called

Accepted Answer

A) budgeted income. 
B) gross pay. 
C) net worth. 
D) total revenue. 
E) take-home pay. 
A) budgeted income. 
B) gross pay. 
C) net worth. 
D) total revenue. 
E) take-home pay.

Question 12

Ed Bostromwants to reduce his fixed expenses.What action would be appropriate?

Accepted Answer

A) Get a part-time job 
B) Eat more meals at home than in restaurants 
C) Find a place to live with a lower rent 
D) Save more money for the future 
E) Buy on credit for items that might cost more later 
A) Get a part-time job 
B) Eat more meals at home than in restaurants 
C) Find a place to live with a lower rent 
D) Save more money for the future 
E) Buy on credit for items that might cost more later

Question 13

Most Canadians have an adequate savings for emergencies.

Accepted Answer

A) True 
 B)False

Question 14

During the past month, Jennifer Sinnet had income of $3,500 and a decrease in net worth of $200.This means Jennifer's payments for the month were:

Accepted Answer

A) $3,700. 
B) $3,300. 
C) $2,800. 
D) $1,000. 
E) $200. 
A) $3,700. 
B) $3,300. 
C) $2,800. 
D) $1,000. 
E) $200.

Question 15

Payments that do vary from month to month are ____________ expenses.

Accepted Answer

A) fixed 
B) current 
C) variable 
D) luxury 
E) budgeted 
A) fixed 
B) current 
C) variable 
D) luxury 
E) budgeted

Question 16

Which of the following financial documents would most likely be stored in a home file?

Accepted Answer

A) Serial numbersof expensive items 
B) Personal financial statements 
C) Mortgage papers,title deed 
D) Birth, marriage and death certificates 
E) Guaranteed investment securities 
A) Serial numbersof expensive items 
B) Personal financial statements 
C) Mortgage papers,title deed 
D) Birth, marriage and death certificates 
E) Guaranteed investment securities

Question 17

An individual retirement account is an example of a(n) ____________ asset.

Accepted Answer

A) liquid 
B) common 
C) investment 
D) household 
E) budgeted 
A) liquid 
B) common 
C) investment 
D) household 
E) budgeted

Question 18

Janice spends a total of $3,300 a month to cover all living expenses.Which of the following would represent the maximum suggested acceptable emergency fund?

Accepted Answer

A) Zero 
B) $3,300 
C) $9,9500 
D) $19,800 
E) $6,600 
A) Zero 
B) $3,300 
C) $9,9500 
D) $19,800 
E) $6,600

Question 19

Improvements in a person's financial position are the result of:

Accepted Answer

A) increased liabilities. 
B) reductions in earnings. 
C) increased savingsand investments. 
D) increased purchases on credit. 
E) lower amountsdeposited in savings. 
A) increased liabilities. 
B) reductions in earnings. 
C) increased savingsand investments. 
D) increased purchases on credit. 
E) lower amountsdeposited in savings.

Question 20

Ben Chase needs to pay off some of his debts over the next few months.Which item on his balance sheet would help him decide what amounts are due in the near future?

Accepted Answer

A) the budget variance 
B) investment assets 
C) long-term liabilities 
D) current liabilities 
E) current assets 
A) the budget variance 
B) investment assets 
C) long-term liabilities 
D) current liabilities 
E) current assets

Opportunity costs are not only associated with money management decisions involving long-term financial security.

Take-home pay is a person's earnings after deductions for taxes and other items.

An organized system of financial records provides a basis for:

A person's net worth is computed by

A major expenditure for most families is

A personal balance sheet presents

This year Phil's gross income is $80,000.His deductions for federal and provincial taxes, CPP contributions and employment insurance are $16,000.He also had after-tax investment earnings of $6,000.Taylor's take-home pay is:

An organized system of financial records provides a basis for:

Current liabilities are amounts that must be paid within a short period of time, usually less than a year.

"Sharing the bills" is a budgeting strategy for two-income households where each partner contributes an equal amount into the pool.

Total earnings of a person less deductions for taxes and other items is called

Ed Bostromwants to reduce his fixed expenses.What action would be appropriate?

Most Canadians have an adequate savings for emergencies.

During the past month, Jennifer Sinnet had income of $3,500 and a decrease in net worth of $200.This means Jennifer's payments for the month were:

Payments that do vary from month to month are ____________ expenses.

Which of the following financial documents would most likely be stored in a home file?

An individual retirement account is an example of a(n) ____________ asset.

Janice spends a total of $3,300 a month to cover all living expenses.Which of the following would represent the maximum suggested acceptable emergency fund?

Improvements in a person's financial position are the result of:

Ben Chase needs to pay off some of his debts over the next few months.Which item on his balance sheet would help him decide what amounts are due in the near future?

Personal Financial Planning: An Introduction

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters

Exam 2: Money Management Strategy: Financial Statements and Budgeting

Opportunity costs are not only associated with money management decisions involving long-term financial security.

Take-home pay is a person's earnings after deductions for taxes and other items.

An organized system of financial records provides a basis for:

A person's net worth is computed by

A major expenditure for most families is

A personal balance sheet presents

This year Phil's gross income is $80,000.His deductions for federal and provincial taxes, CPP contributions and employment insurance are $16,000.He also had after-tax investment earnings of $6,000.Taylor's take-home pay is:

An organized system of financial records provides a basis for:

Current liabilities are amounts that must be paid within a short period of time, usually less than a year.

"Sharing the bills" is a budgeting strategy for two-income households where each partner contributes an equal amount into the pool.

Total earnings of a person less deductions for taxes and other items is called

Ed Bostromwants to reduce his fixed expenses.What action would be appropriate?

Most Canadians have an adequate savings for emergencies.

During the past month, Jennifer Sinnet had income of $3,500 and a decrease in net worth of $200.This means Jennifer's payments for the month were:

Payments that do vary from month to month are ____________ expenses.

Which of the following financial documents would most likely be stored in a home file?

An individual retirement account is an example of a(n) ____________ asset.

Janice spends a total of $3,300 a month to cover all living expenses.Which of the following would represent the maximum suggested acceptable emergency fund?

Improvements in a person's financial position are the result of:

Ben Chase needs to pay off some of his debts over the next few months.Which item on his balance sheet would help him decide what amounts are due in the near future?

Personal Financial Planning: An Introduction

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters