Question 1

A personal cash flow statement presents income and outflows of cash for a given time period, such as a month.

Accepted Answer

A) True 
 B)False

Question 2

Katherine Kocher 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. She has recently purchased a 2-year certificate of deposit worth $5,500 and she has a retirement account worth $38,550. What is the value of her liquid assets?

Accepted Answer

A)  $2,050 
B)  $98,000 
C)  $27,800 
D)  $44,050 
E)  $171,900 
A)  $2,050 
B)  $98,000 
C)  $27,800 
D)  $44,050 
E)  $171,900

Question 3

Patricia McDonald has determined that the value of her liquid assets is $4,500, the value of her real estate is $128,000, the value of her personal possessions is $62,000, and the value of her investment assets is $73,000. She has also determined the value of her current liabilities is $7,500 and the value of her long term liabilities is $98,000. What is Patricia's net worth?

Accepted Answer

A)  $267,500 
B)  $105,500 
C)  $162,000 
D)  $205,500 
E)  $132,000 
A)  $267,500 
B)  $105,500 
C)  $162,000 
D)  $205,500 
E)  $132,000

Question 4

A family has a net worth of $156,000 and liabilities of $167,000, what is the amount of their assets?

Accepted Answer

A)  $11,000 
B)  $156,000 
C)  $167,000 
D)  $323,000 
E)  $452,000 
A)  $11,000 
B)  $156,000 
C)  $167,000 
D)  $323,000 
E)  $452,000

Question 5

Katherine Kocher 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. She has recently purchased a 2-year certificate of deposit worth $5,500 and she has a retirement account worth $38,550. What is the value of her real estate assets?

Accepted Answer

A)  $2,050 
B)  $98,000 
C)  $27,800 
D)  $44,050 
E)  $171,900 
A)  $2,050 
B)  $98,000 
C)  $27,800 
D)  $44,050 
E)  $171,900

Question 6

Your Aunt gives you some money for your birthday and you decide to put it into your savings account instead of spending it. The trade-off of not being able to spend the money now is this decision's ________ cost.

Accepted Answer

A)  fixed 
B)  opportunity 
C)  variable 
D)  transaction 
E)  total 
A)  fixed 
B)  opportunity 
C)  variable 
D)  transaction 
E)  total

Question 7

Which of the following would be considered a long-term liability?

Accepted Answer

A)  Charge account payment 
B)  Mortgage 
C)  Six month personal loan 
D)  Amount due for taxes 
E)  Amount due on a credit card 
A)  Charge account payment 
B)  Mortgage 
C)  Six month personal loan 
D)  Amount due for taxes 
E)  Amount due on a credit card

Question 8

Darlene Elkin has the following financial amounts: checking accounts $850, savings account $3,500, credit card balance $300, jewelry $1,600, real estate valued at $78,000, a mortgage on the real estate of $23,000. What is the total of Darlene's assets? What actions could she take to increase her net worth?

Accepted Answer

To calculate Darlene Elkin's total asset

Question 9

Which of the following would most likely be classified as a current liability?

Accepted Answer

A)  Monthly balance due on a credit card 
B)  Total amount of a mortgage 
C)  Balance of a student loan 
D)  Total of a home improvement loan 
E)  Balance of an auto loan 
A)  Monthly balance due on a credit card 
B)  Total amount of a mortgage 
C)  Balance of a student loan 
D)  Total of a home improvement loan 
E)  Balance of an auto loan

Question 10

Which one of the following should be budgeted first?

Accepted Answer

A)  Variable expenses 
B)  Vacation expenses 
C)  Fixed expenses 
D)  Unplanned living expenses 
E)  Recreation expenses 
A)  Variable expenses 
B)  Vacation expenses 
C)  Fixed expenses 
D)  Unplanned living expenses 
E)  Recreation expenses

Question 11

Liabilities are amounts representing:

Accepted Answer

A)  debts. 
B)  items of value. 
C)  living expenses. 
D)  taxable income. 
E)  current assets. 
A)  debts. 
B)  items of value. 
C)  living expenses. 
D)  taxable income. 
E)  current assets.

Question 12

Which one of the following presents a summary of income and outflows for a period of time?

Accepted Answer

A)  Balance sheet 
B)  Bank statement 
C)  Investment summary 
D)  Cash flow statement 
E)  Asset report 
A)  Balance sheet 
B)  Bank statement 
C)  Investment summary 
D)  Cash flow statement 
E)  Asset report

Question 13

Ed Bostrom wants to reduce his fixed expenses. Which action would be appropriate?

Accepted Answer

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

Question 14

Financial records that are referred to on a regular basis should be kept in a safe-deposit box.

Accepted Answer

A) True 
 B)False

Question 15

An example of a liquid asset is:

Accepted Answer

A)  furniture. 
B)  jewelry. 
C)  automobile. 
D)  cash value of life insurance. 
E)  home computer. 
A)  furniture. 
B)  jewelry. 
C)  automobile. 
D)  cash value of life insurance. 
E)  home computer.

Question 16

A personal balance sheet:

Accepted Answer

A)  predicts income and expenses. 
B)  reports what an individual or a family owes and owns. 
C)  reports income and expenses or an individual or a family. 
D)  predicts net worth of an economic entity. 
E)  analyzes debt payment activities. 
A)  predicts income and expenses. 
B)  reports what an individual or a family owes and owns. 
C)  reports income and expenses or an individual or a family. 
D)  predicts net worth of an economic entity. 
E)  analyzes debt payment activities.

Question 17

Money management activities refer to long-term investment decisions.

Accepted Answer

A) True 
 B)False

Question 18

A cash flow statement reports a person's or a family's:

Accepted Answer

A)  net worth. 
B)  current income and payments. 
C)  plan for spending. 
D)  value of investments. 
E)  balance of savings. 
A)  net worth. 
B)  current income and payments. 
C)  plan for spending. 
D)  value of investments. 
E)  balance of savings.

Question 19

The amount of income that a person or household has to spend after deductions for taxes and other items is called:

Accepted Answer

A)  take-home pay. 
B)  discretionary income. 
C)  surplus. 
D)  budget variance. 
E)  cash flow. 
A)  take-home pay. 
B)  discretionary income. 
C)  surplus. 
D)  budget variance. 
E)  cash flow.

Question 20

Which of the following would be an example of a personal and employment document?

Accepted Answer

A)  Budget 
B)  Passbook 
C)  Social Security card 
D)  Property tax bill 
E)  Lease 
A)  Budget 
B)  Passbook 
C)  Social Security card 
D)  Property tax bill 
E)  Lease

A personal cash flow statement presents income and outflows of cash for a given time period, such as a month.

A family has a net worth of $156,000 and liabilities of $167,000, what is the amount of their assets?

Your Aunt gives you some money for your birthday and you decide to put it into your savings account instead of spending it. The trade-off of not being able to spend the money now is this decision's ________ cost.

Which of the following would be considered a long-term liability?

Which of the following would most likely be classified as a current liability?

Which one of the following should be budgeted first?

Liabilities are amounts representing:

Which one of the following presents a summary of income and outflows for a period of time?

Ed Bostrom wants to reduce his fixed expenses. Which action would be appropriate?

Financial records that are referred to on a regular basis should be kept in a safe-deposit box.

An example of a liquid asset is:

A personal balance sheet:

Money management activities refer to long-term investment decisions.

A cash flow statement reports a person's or a family's:

The amount of income that a person or household has to spend after deductions for taxes and other items is called:

Which of the following would be an example of a personal and employment document?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters

Exam 3: Money Management Strategy: Financial Statements and Budgeting

A personal cash flow statement presents income and outflows of cash for a given time period, such as a month.

A family has a net worth of $156,000 and liabilities of $167,000, what is the amount of their assets?

Your Aunt gives you some money for your birthday and you decide to put it into your savings account instead of spending it. The trade-off of not being able to spend the money now is this decision's ________ cost.

Which of the following would be considered a long-term liability?

Which of the following would most likely be classified as a current liability?

Which one of the following should be budgeted first?

Liabilities are amounts representing:

Which one of the following presents a summary of income and outflows for a period of time?

Ed Bostrom wants to reduce his fixed expenses. Which action would be appropriate?

Financial records that are referred to on a regular basis should be kept in a safe-deposit box.

An example of a liquid asset is:

A personal balance sheet:

Money management activities refer to long-term investment decisions.

A cash flow statement reports a person's or a family's:

The amount of income that a person or household has to spend after deductions for taxes and other items is called:

Which of the following would be an example of a personal and employment document?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters