Exam 3: Money Management Strategy: Financial Statements and Budgeting

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?

Which one of the following illustrates an insolvent situation?

An investment account that increases from $1,000 to $1,005 in a month is earning approximately __ percent annual interest.

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

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 total value of her assets?

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?

Ben Chase needs to pay off some of his debts over the next few months.Which item on his balance sheet would help him decide what amounts are due in the near future?

Insolvency is a result of having more liabilities than assets.

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

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

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

This month,Ken Grossman has cash inflows of $3,100 and cash outflows of $2,950,resulting in a

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:

If expenses for a month are greater than income,an increase in net worth will result.

A home file should be used for:

Opportunity costs are only associated with money management decisions involving long-term financial security.

A decrease in net worth could be the result of:

Opportunity costs refer to:

Samuel Jackson has developed a budget that he follows each month.This is a budget that he keeps in his head.He does not write anything down,nor does he use a computer to keep track of this budget.What type of budget has Samuel created?

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