Question 1

The amount of income that a person or household has available 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 2

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

Accepted Answer

A) True 
 B)False

Question 3

To determine a person's solvency,which financial document should be consulted?

Accepted Answer

A) Cash flow statement 
B) Budget 
C) Debt consolidation statement 
D) Balance sheet 
E) Credit report 
A) Cash flow statement 
B) Budget 
C) Debt consolidation statement 
D) Balance sheet 
E) Credit report

Question 4

Warranties are commonly kept with ____________ purchase records.

Accepted Answer

A) investment 
B) insurance 
C) credit 
D) financial service 
E) consumer 
A) investment 
B) insurance 
C) credit 
D) financial service 
E) consumer

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which one of the following cash outflows should be listed first on a Cash Flow Statement?

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 7

One of the main purposes of a budget includes:

Accepted Answer

A) Live within your income. 
B) Spend your money quickly. 
C) Reach your career goals. 
D) Prepare for financial non-emergencies. 
E) Develop spontaneous financial management habits. 
A) Live within your income. 
B) Spend your money quickly. 
C) Reach your career goals. 
D) Prepare for financial non-emergencies. 
E) Develop spontaneous financial management habits.

Question 8

Amy Farmer has developed a budget that she follows each month.She went to the office supply store and purchased a spiral notebook.Each month she pens in what she wants to spend in the various categories.At the end of the month,she pens the amount that she actually spent in each of these categories and compares the results.What type of budget has Amy created?

Accepted Answer

A) Mental budget 
B) Physical budget 
C) Written budget 
D) Computerized budget 
E) None of these 
A) Mental budget 
B) Physical budget 
C) Written budget 
D) Computerized budget 
E) None of these

Question 9

Calculate the debt ratio for an individual who has $90,000 in assets and $35,000 in liabilities.

Accepted Answer

A) 0.28 
B) 2.57 
C) 0.39 
D) 0.64 
E) 1.25 
A) 0.28 
B) 2.57 
C) 0.39 
D) 0.64 
E) 1.25

Question 10

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.

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

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

To determine a person's solvency,which financial document should be consulted?

Warranties are commonly kept with ____________ purchase records.

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

Which one of the following cash outflows should be listed first on a Cash Flow Statement?

One of the main purposes of a budget includes:

Calculate the debt ratio for an individual who has $90,000 in assets and $35,000 in liabilities.

Liabilities are amounts representing:

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

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

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

To determine a person's solvency,which financial document should be consulted?

Warranties are commonly kept with ____________ purchase records.

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

Which one of the following cash outflows should be listed first on a Cash Flow Statement?

One of the main purposes of a budget includes:

Calculate the debt ratio for an individual who has $90,000 in assets and $35,000 in liabilities.

Liabilities are amounts representing:

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