Question 1

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 passbook 
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 passbook

Question 2

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?

Accepted Answer

A) current liabilities 
B) long Term liabilities 
C) net worth 
D) variable expenses 
E) fixed expenses 
A) current liabilities 
B) long Term liabilities 
C) net worth 
D) variable expenses 
E) fixed expenses

Question 3

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?

Accepted Answer

The answer of Diane Rossiter lives with her two sons,ages...

Question 4

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

Question 5

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 6

During the past month,Jennifer Ernet had income of $3,000.During the month,her net worth declined by $200.If no other financial activities occurred,this means Jennifer's payments for the month were:

Accepted Answer

A) $3,200. 
B) $3,000. 
C) $2,800. 
D) $200. 
E) $0. 
A) $3,200. 
B) $3,000. 
C) $2,800. 
D) $200. 
E) $0.

Question 7

A family with $45,000 in assets and $22,000 of liabilities would have a net worth of:

Accepted Answer

A) $45,000. 
B) $23,000. 
C) $22,000. 
D) $67,000. 
E) $41,000. 
A) $45,000. 
B) $23,000. 
C) $22,000. 
D) $67,000. 
E) $41,000.

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 the answers 
A) mental budget 
B) physical budget 
C) written budget 
D) computerized budget 
E) none of the answers

Question 9

A personal cash flow statement can serve as the basis for the budget categories used by an individual or family.

Accepted Answer

A) True 
 B)False

Question 10

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 11

Which type of financial records includes stock and bond reports?

Accepted Answer

A) investment 
B) insurance 
C) estate planning 
D) tax 
E) consumer purchase 
A) investment 
B) insurance 
C) estate planning 
D) tax 
E) consumer purchase

Question 12

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

Accepted Answer

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

Question 13

When it comes to savings,most Americans:

Accepted Answer

A) have an adequate emergency fund. 
B) devote large portions of their income to savings. 
C) find saving difficult. 
D) keep substantial amounts in a regular savings account. 
E) reduce the amount they save during their working lifE. 
A) have an adequate emergency fund. 
B) devote large portions of their income to savings. 
C) find saving difficult. 
D) keep substantial amounts in a regular savings account. 
E) reduce the amount they save during their working lifE.

Question 14

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?

Accepted Answer

A) mental budget 
B) physical budget 
C) written budget 
D) computerized budget 
E) none of the answers 
A) mental budget 
B) physical budget 
C) written budget 
D) computerized budget 
E) none of the answers

Question 15

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?

Accepted Answer

The answer of What are the main components of a...

Question 16

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 17

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 18

Which of the following payments would be considered a variable expense?

Accepted Answer

A) rent 
B) installment loan payment 
C) mortgage payment 
D) payment on a car loan 
E) water bill 
A) rent 
B) installment loan payment 
C) mortgage payment 
D) payment on a car loan 
E) water bill

Question 19

Definite financial obligations are referred to as variable expenses.

Accepted Answer

A) True 
 B)False

Question 20

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:

Accepted Answer

A) money management. 
B) an opportunity cost. 
C) a limited asset. 
D) a liquid asset. 
E) net worth analysis. 
A) money management. 
B) an opportunity cost. 
C) a limited asset. 
D) a liquid asset. 
E) net worth analysis.

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

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?

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?

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

During the past month,Jennifer Ernet had income of $3,000.During the month,her net worth declined by $200.If no other financial activities occurred,this means Jennifer's payments for the month were:

A family with $45,000 in assets and $22,000 of liabilities would have a net worth of:

A personal cash flow statement can serve as the basis for the budget categories used by an individual or family.

Which type of financial records includes stock and bond reports?

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

When it comes to savings,most Americans:

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?

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 personal balance sheet presents:

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

Which of the following payments would be considered a variable expense?

Definite financial obligations are referred to as variable expenses.

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:

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

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Exam 3: Money Management Strategy: Financial Statements and Budgeting

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

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?

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?

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

During the past month,Jennifer Ernet had income of $3,000.During the month,her net worth declined by $200.If no other financial activities occurred,this means Jennifer's payments for the month were:

A family with $45,000 in assets and $22,000 of liabilities would have a net worth of:

A personal cash flow statement can serve as the basis for the budget categories used by an individual or family.

Which type of financial records includes stock and bond reports?

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

When it comes to savings,most Americans:

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?

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 personal balance sheet presents:

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

Which of the following payments would be considered a variable expense?

Definite financial obligations are referred to as variable expenses.

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:

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