Exam 3: Money Management Strategy: Financial Statements and Budgeting

A person has $1,250 in liabilities, monthly savings of $200, and monthly gross income of $2,500. What is the person's savings ratio?

Definite financial obligations are referred to as:

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?

A person's net worth is the difference between the value of the items owned and the amounts owed to others.

Total earnings of a person minus the deductions for taxes and other items is called:

Definite financial obligations are referred to as variable expenses.

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

Liquid assets refer to:

Allen Arnold has determined that the amount of money he spends on his mortgage payment, car insurance payment, and cable bill totals $1,200 each month. What type of expenses has Allen determined with this calculation?

What types of financial records and documents should be kept in a safe deposit box?

Which one of the following is the best example of a long-term goal for a young couple?

When preparing her monthly budget, Marge Kent has a total spending allowance of $4,600. Each month she pays $1,200 in rent, $60 for cable television and Internet service, and $240 for her auto loan. What percentage of her budget goes for these fixed expenses?

If expenses for a month are greater than income, an increase in net worth will result.

Nick Boss has a savings account with $550 in it. He knows that he can withdraw this money whenever he wishes. This would be an example of:

Patricia McDonald has determined the following information about her own financial situation. Her checking account is worth $850 and her savings account is worth $1,200. She owns her own home that has a market value of $98,000. She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,300. She has a car worth $12,500 and owes $7,800 on her auto loan. She has also purchased some stock worth $5,500 and she has a retirement account worth $38,550. What is the total value of her assets?

Which one of the following illustrates an insolvent situation?

The current financial position (including net worth) of an individual or family is best presented with the use of a(n):

Insolvency is a result of having more liabilities than assets.

Which of the following are considered to be personal financial statements?

A home file should be used for: