Exam 3: Money Management Strategy: Financial Statements and Budgeting

What are the main components of a personal balance sheet and a cash flow statement? What is the main purpose of each of these personal financial statements?

A person's net worth would increase as a result of:

When it comes to savings,most Americans:

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?

A common deduction from a person's paycheck is for:

The Hernandez family budgets $420 a month for food.Last month they spent $413,which creates a:

Which of the following financial documents would most likely be stored in a safe-deposit box?

Kyle Burroughs has decided to put $25 more per week in his savings account.He knows this will reduce his ability to go out to eat each week but thinks building his savings is important.This would be an example of:

A personal balance sheet:

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:

In order to calculate savings ratio,the amount saved each month is divided by net income.

Darlene Elkin has the following financial amounts: checking account $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?

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?

The value of items owned minus the amounts owed to others equals:

When preparing her monthly budget,Marge Kent has projected income of $4,600.Each month she pays $1,200 in rent,$60 for life insurance,and $240 for her auto loan.What percentage of her budget goes for these fixed expenses?

Which of the following items is something that would typically not be stored in a safety deposit box?

Diane Rossiter lives with her two sons,ages 6 and 9.They have had difficulty managing their finances.What purposes could a budget serve for the Rossiters? What actions would you suggest for the budgeting process to be successful?

Jonathan Wynn has developed a budget that he follows each month.Jonathan has an envelope for each type of expenditure.After he cashes his paycheck,he puts the amount of cash in each envelope that he plans to spend on that category each month.What type of budget has Jonathan created?

A budget deficit would result when a person's or family's:

Jamie McFarland has determined that the value of her liquid assets is $4,500,the value of her real estate is $108,000,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 $9,500 and the value of her long term liabilities is $68,000.What is Jamie's net worth?