Question 1

Most income tax documents should be kept for _____ year(s).

Accepted Answer

A) 0 
B) 1 
C) 3 
D) 5 
E) 7 
A) 0 
B) 1 
C) 3 
D) 5 
E) 7

Question 2

Changes in the cost of living are:

Accepted Answer

A) different in various geographic areas. 
B) the same for different locations. 
C) constant from month to month. 
D) the same for all goods and services. 
E) not a factor when preparing a budget. 
A) different in various geographic areas. 
B) the same for different locations. 
C) constant from month to month. 
D) the same for all goods and services. 
E) not a factor when preparing a budget.

Question 3

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

Accepted Answer

A) increased liabilities. 
B) reductions in earnings. 
C) increased savings and investments. 
D) increased purchases on credit. 
E) lower amounts deposited in savings. 
A) increased liabilities. 
B) reductions in earnings. 
C) increased savings and investments. 
D) increased purchases on credit. 
E) lower amounts deposited in savings.

Question 4

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 mutual fund 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 5

For January,Bethany DeWeese had cash inflows of $4,200 and cash outflows of $4,750,resulting in a:

Accepted Answer

A) balanced budget. 
B) surplus of $550. 
C) deficit of $550. 
D) surplus of $8,950. 
E) deficit of $4,750. 
A) balanced budget. 
B) surplus of $550. 
C) deficit of $550. 
D) surplus of $8,950. 
E) deficit of $4,750.

Question 6

One of the main purposes of personal financial statements is to:

Accepted Answer

A) Report your future financial position relating to the value of items owned and owed. 
B) Measure your progress toward financial goals. 
C) Maintain information about your professional work activities. 
D) Provide data you can use when rating a restaurant. 
E) None of these. 
A) Report your future financial position relating to the value of items owned and owed. 
B) Measure your progress toward financial goals. 
C) Maintain information about your professional work activities. 
D) Provide data you can use when rating a restaurant. 
E) None of these.

Question 7

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?

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 8

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

Accepted Answer

A) Budget and credit card statements 
B) Balance sheet and cash flow statement 
C) Checkbook and budget 
D) Tax returns 
E) Bank statement and savings statement 
A) Budget and credit card statements 
B) Balance sheet and cash flow statement 
C) Checkbook and budget 
D) Tax returns 
E) Bank statement and savings statement

Question 9

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

Accepted Answer

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

Question 10

Explain why opportunity cost is an important concept in money management.

Accepted Answer

Opportunity costs are the trade-offs tha

Question 11

Cash and other tangible property (with a monetary value)that you own are referred to as:

Accepted Answer

A) liabilities. 
B) variable expenses. 
C) net worth. 
D) income. 
E) assets. 
A) liabilities. 
B) variable expenses. 
C) net worth. 
D) income. 
E) assets.

Question 12

The value of the home you own would be included in which section of your balance sheet?

Accepted Answer

A) Liquid assets 
B) Investment assets 
C) Real estate assets 
D) Personal possessions 
E) Current liabilities 
A) Liquid assets 
B) Investment assets 
C) Real estate assets 
D) Personal possessions 
E) Current liabilities

Question 13

Opportunity costs refer to:

Accepted Answer

A) current spending habits. 
B) changing economic conditions that affect a person's cost of living. 
C) storage facilities to make financial documents easily available. 
D) trade-offs associated with financial decisions. 
E) avoiding the use of consumer credit. 
A) current spending habits. 
B) changing economic conditions that affect a person's cost of living. 
C) storage facilities to make financial documents easily available. 
D) trade-offs associated with financial decisions. 
E) avoiding the use of consumer credit.

Question 14

Jerry Allison needs to store the title to his car and his house.Where is the most appropriate place for Jerry to store this information?

Accepted Answer

A) Home file cabinet 
B) Safe deposit box 
C) Personal computer 
D) Best friend's house 
E) None of these 
A) Home file cabinet 
B) Safe deposit box 
C) Personal computer 
D) Best friend's house 
E) None of these

Question 15

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 that 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 that might cost more later

Question 16

Sean Carter needs to store monthly statements from his bank,his credit card company and from his savings and loan.Where is the most appropriate place for Sean to store this information?

Accepted Answer

A) Home file cabinet 
B) Safe deposit box 
C) File at work 
D) Best friend's house 
E) None of these 
A) Home file cabinet 
B) Safe deposit box 
C) File at work 
D) Best friend's house 
E) None of these

Question 17

Common long term liabilities include:

Accepted Answer

A) Educational loans 
B) Medical bills 
C) Insurance premiums 
D) Charge accounts 
E) All of these 
A) Educational loans 
B) Medical bills 
C) Insurance premiums 
D) Charge accounts 
E) All of these

Question 18

Jamie McFarland 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 the total value of her debts?

Accepted Answer

A) $267,500 
B) $105,500 
C) $162,000 
D) $205,500 
E) None of these 
A) $267,500 
B) $105,500 
C) $162,000 
D) $205,500 
E) None of these

Question 19

A personal balance sheet presents:

Accepted Answer

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

Question 20

The debt ratio is calculated as:

Accepted Answer

A) Net worth divided by liabilities. 
B) Monthly credit payments divided by take-home pay. 
C) Liabilities divided by net worth. 
D) Liquid assets divided by current liabilities. 
E) Liquid assets divided by monthly expenses. 
A) Net worth divided by liabilities. 
B) Monthly credit payments divided by take-home pay. 
C) Liabilities divided by net worth. 
D) Liquid assets divided by current liabilities. 
E) Liquid assets divided by monthly expenses.

Most income tax documents should be kept for _____ year(s).

Changes in the cost of living are:

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

For January,Bethany DeWeese had cash inflows of $4,200 and cash outflows of $4,750,resulting in a:

One of the main purposes of personal financial statements is to:

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

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

Explain why opportunity cost is an important concept in money management.

Cash and other tangible property (with a monetary value)that you own are referred to as:

The value of the home you own would be included in which section of your balance sheet?

Opportunity costs refer to:

Jerry Allison needs to store the title to his car and his house.Where is the most appropriate place for Jerry to store this information?

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

Sean Carter needs to store monthly statements from his bank,his credit card company and from his savings and loan.Where is the most appropriate place for Sean to store this information?

Common long term liabilities include:

A personal balance sheet presents:

The debt ratio is calculated as:

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 Stock

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

Most income tax documents should be kept for _____ year(s).

Changes in the cost of living are:

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

For January,Bethany DeWeese had cash inflows of $4,200 and cash outflows of $4,750,resulting in a:

One of the main purposes of personal financial statements is to:

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

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

Explain why opportunity cost is an important concept in money management.

Cash and other tangible property (with a monetary value)that you own are referred to as:

The value of the home you own would be included in which section of your balance sheet?

Opportunity costs refer to:

Jerry Allison needs to store the title to his car and his house.Where is the most appropriate place for Jerry to store this information?

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

Sean Carter needs to store monthly statements from his bank,his credit card company and from his savings and loan.Where is the most appropriate place for Sean to store this information?

Common long term liabilities include:

A personal balance sheet presents:

The debt ratio is calculated as:

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 Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters