Question 1

Given the following information,calculate net worth:

Accepted Answer

$34,850
Feedback: Assets - Liabilities = Net worth.
(Automobile + Cash + Cash value of life insurance + Mutual fund + Home + Market value of TV)less (Auto loan + Credit card balance + Mortgage).
($12,000 + 1,100 + 2,000 + 5,500 + 175,000 + 500)- (10,000 + 1,250 + 150,000)= 196,100 - 161,250 = $34,850.

Question 2

Which of the following categories would be most difficult to cut from a household budget?

Accepted Answer

A)  Vacations 
B)  Lawn services 
C)  Cable 
D)  Charitable donations 
E)  Auto insurance 
A)  Vacations 
B)  Lawn services 
C)  Cable 
D)  Charitable donations 
E)  Auto insurance E

Question 3

Which of the following appears on a cash flow statement?

Accepted Answer

A)  Assets 
B)  Payments for variable expenses 
C)  Net worth 
D)  Liabilities 
E)  Investments 
A)  Assets 
B)  Payments for variable expenses 
C)  Net worth 
D)  Liabilities 
E)  Investments B

Question 4

How long should you keep your most current will?

Accepted Answer

A)  No need to keep it since your lawyer probably has a photocopy. 
B)  One year. 
C)  Three years. 
D)  Seven years. 
E)  Permanently. 
A)  No need to keep it since your lawyer probably has a photocopy. 
B)  One year. 
C)  Three years. 
D)  Seven years. 
E)  Permanently.

Question 5

On a personal balance sheet,assets can be identified as belonging to one of four categories.List each category and provide one example of each.

Accepted Answer

The answer of On a personal balance sheet,assets can be...

Question 6

Most people liquidate their assets to calculate their net worth.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a deduction to determine take-home pay?

Accepted Answer

A)  Interest 
B)  Commissions 
C)  Dividends 
D)  Salary 
E)  Social Security taxes 
A)  Interest 
B)  Commissions 
C)  Dividends 
D)  Salary 
E)  Social Security taxes

Question 8

Given the following information,calculate the savings ratio: Liabilities = $24,500
Liquid assets = $4,900
Monthly credit payments = $800
Monthly savings = $760
Net worth = $72,500
Current liabilities = $1,600
Take-home pay = $2,300
Gross income = $3,500
Monthly expenses = $2,040

Accepted Answer

A)  33.79% 
B)  3.06% 
C)  2.40% 
D)  34.78% 
E)  21.71% 
A)  33.79% 
B)  3.06% 
C)  2.40% 
D)  34.78% 
E)  21.71%

Question 9

Which of the following is a cash inflow?

Accepted Answer

A)  Mail rent check 
B)  Buy groceries 
C)  Make a loan payment 
D)  Receive a paycheck 
E)  Pay medical expenses 
A)  Mail rent check 
B)  Buy groceries 
C)  Make a loan payment 
D)  Receive a paycheck 
E)  Pay medical expenses

Question 10

A debt ratio of 0.5 indicates

Accepted Answer

A)  The balance on the mortgage = 50% of the value of the home. 
B)  For every dollar of net worth, debt equals $0.50. 
C)  For every dollar of debt, net worth equals $0.50. 
D)  For every dollar of take-home pay, monthly credit payments equal $0.50. 
E)  For every dollar of assets, monthly credit payments equal $0.50. 
A)  The balance on the mortgage = 50% of the value of the home. 
B)  For every dollar of net worth, debt equals $0.50. 
C)  For every dollar of debt, net worth equals $0.50. 
D)  For every dollar of take-home pay, monthly credit payments equal $0.50. 
E)  For every dollar of assets, monthly credit payments equal $0.50.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

An example of a fixed expense is

Accepted Answer

A)  Medical expenses. 
B)  Gifts. 
C)  Utilities. 
D)  A mortgage. 
E)  Recreation. 
A)  Medical expenses. 
B)  Gifts. 
C)  Utilities. 
D)  A mortgage. 
E)  Recreation.

Question 13

Disposable income equals

Accepted Answer

A)  Gross income. 
B)  Take-home pay. 
C)  The amount being saved each month. 
D)  Money left over after paying for housing, food, and other necessities. 
E)  Social Security taxes. 
A)  Gross income. 
B)  Take-home pay. 
C)  The amount being saved each month. 
D)  Money left over after paying for housing, food, and other necessities. 
E)  Social Security taxes.

Question 14

What is an example of an asset?
 At what value is it listed on the personal balance sheet?

Accepted Answer

Assets are listed at

Question 15

The main purposes of personal financial statements are to

Accepted Answer

A)  Report your current financial position. 
B)  Measure your progress toward financial goals. 
C)  Maintain information about your financial activities. 
D)  Provide data for preparing tax forms or applying for credit. 
E)  These are all correct. 
A)  Report your current financial position. 
B)  Measure your progress toward financial goals. 
C)  Maintain information about your financial activities. 
D)  Provide data for preparing tax forms or applying for credit. 
E)  These are all correct.

Question 16

The money left over after paying for housing,food,and other necessities is called

Accepted Answer

A)  Monthly savings. 
B)  Discretionary income. 
C)  Disposable income. 
D)  Gross income. 
E)  Take-home pay. 
A)  Monthly savings. 
B)  Discretionary income. 
C)  Disposable income. 
D)  Gross income. 
E)  Take-home pay.

Question 17

Given the following information,calculate the current ratio: Liabilities = $-24,500
Liquid assets = $-4,900
Monthly credit payments = $-800
Monthly savings = $-760
Net worth = $-72,500
Current liabilities = $-1,600
Take-home pay = $-2,300
Gross income = $-3,500
Monthly expenses = $-2,040

Accepted Answer

A)  -33.79 
B)  -3.06 
C)  -2.40 
D)  -34.78 
E)  -21.71 
A)  -33.79 
B)  -3.06 
C)  -2.40 
D)  -34.78 
E)  -21.71

Question 18

Which of the following is NOT a liquid asset?

Accepted Answer

A)  Savings/money market accounts 
B)  Cash value of life insurance 
C)  Checking account balance 
D)  Coins in a jar at home 
E)  Retirement investments 
A)  Savings/money market accounts 
B)  Cash value of life insurance 
C)  Checking account balance 
D)  Coins in a jar at home 
E)  Retirement investments

Question 19

Which of the following is most correct?

Accepted Answer

A)  A warranty belongs in a safe deposit box. 
B)  A birth certificate should be kept in a personal computer system. 
C)  Tax records belong in a home file. 
D)  A plan for effective budgeting belongs in your safe deposit box. 
E)  Adoption papers belong in a home file. 
A)  A warranty belongs in a safe deposit box. 
B)  A birth certificate should be kept in a personal computer system. 
C)  Tax records belong in a home file. 
D)  A plan for effective budgeting belongs in your safe deposit box. 
E)  Adoption papers belong in a home file.

Question 20

In an organized system,birth and marriage certificates belong in a safe deposit box.

Accepted Answer

A) True 
 B)False

Given the following information,calculate net worth:

Which of the following categories would be most difficult to cut from a household budget?

Which of the following appears on a cash flow statement?

How long should you keep your most current will?

On a personal balance sheet,assets can be identified as belonging to one of four categories.List each category and provide one example of each.

Most people liquidate their assets to calculate their net worth.

Which of the following is a deduction to determine take-home pay?

Given the following information,calculate the savings ratio: Liabilities = $24,500 Liquid assets = $4,900 Monthly credit payments = $800 Monthly savings = $760 Net worth = $72,500 Current liabilities = $1,600 Take-home pay = $2,300 Gross income = $3,500 Monthly expenses = $2,040

Which of the following is a cash inflow?

A debt ratio of 0.5 indicates

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

An example of a fixed expense is

Disposable income equals

What is an example of an asset? At what value is it listed on the personal balance sheet?

The main purposes of personal financial statements are to

The money left over after paying for housing,food,and other necessities is called

Given the following information,calculate the current ratio: Liabilities = $-24,500 Liquid assets = $-4,900 Monthly credit payments = $-800 Monthly savings = $-760 Net worth = $-72,500 Current liabilities = $-1,600 Take-home pay = $-2,300 Gross income = $-3,500 Monthly expenses = $-2,040

Which of the following is NOT a liquid asset?

Which of the following is most correct?

In an organized system,birth and marriage certificates belong in a safe deposit box.

Personal Financial Planning in Action

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Filters

Exam 2: Money Management Skills

Given the following information,calculate net worth:

Which of the following categories would be most difficult to cut from a household budget?

Which of the following appears on a cash flow statement?

How long should you keep your most current will?

On a personal balance sheet,assets can be identified as belonging to one of four categories.List each category and provide one example of each.

Most people liquidate their assets to calculate their net worth.

Which of the following is a deduction to determine take-home pay?

Given the following information,calculate the savings ratio: Liabilities = $24,500 Liquid assets = $4,900 Monthly credit payments = $800 Monthly savings = $760 Net worth = $72,500 Current liabilities = $1,600 Take-home pay = $2,300 Gross income = $3,500 Monthly expenses = $2,040

Which of the following is a cash inflow?

A debt ratio of 0.5 indicates

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

An example of a fixed expense is

Disposable income equals

What is an example of an asset? At what value is it listed on the personal balance sheet?

The main purposes of personal financial statements are to

The money left over after paying for housing,food,and other necessities is called

Given the following information,calculate the current ratio: Liabilities = $-24,500 Liquid assets = $-4,900 Monthly credit payments = $-800 Monthly savings = $-760 Net worth = $-72,500 Current liabilities = $-1,600 Take-home pay = $-2,300 Gross income = $-3,500 Monthly expenses = $-2,040

Which of the following is NOT a liquid asset?

Which of the following is most correct?

In an organized system,birth and marriage certificates belong in a safe deposit box.

Personal Financial Planning in Action

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Filters