Question 1

The difference between the amount budgeted and the actual amount received or spent is called the

Accepted Answer

A)  Variance. 
B)  Cash outflow. 
C)  Income. 
D)  Cash inflow. 
E)  Variable expense. 
A)  Variance. 
B)  Cash outflow. 
C)  Income. 
D)  Cash inflow. 
E)  Variable expense.

Question 2

A home file should be used for storing

Accepted Answer

A)  All financial documents and records. 
B)  Financial records for current needs. 
C)  Documents that require maximum security. 
D)  Obsolete financial documents. 
E)  Records that are difficult to replace. 
A)  All financial documents and records. 
B)  Financial records for current needs. 
C)  Documents that require maximum security. 
D)  Obsolete financial documents. 
E)  Records that are difficult to replace.

Question 3

The document that would be most useful to track spending patterns for the past few months is the

Accepted Answer

A)  Balance sheet. 
B)  Cash flow statement. 
C)  Budget. 
D)  All of these. 
E)  None of these. 
A)  Balance sheet. 
B)  Cash flow statement. 
C)  Budget. 
D)  All of these. 
E)  None of these.

Question 4

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

Accepted Answer

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

Question 5

Identify what a cash flow statement is and discuss what it is used for.

Accepted Answer

A cash flow statement is a summary of ca

Question 6

The amount you would have if everything of value would be sold and all debts would be paid in full is called your

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 7

Rebecca Gladlyn budgeted $1,250 for housing and utilities in July.She actually spent $1,162.What is her budget variance?

Accepted Answer

A)  $1,162 deficit 
B)  $88 deficit 
C)  $44 deficit 
D)  $88 surplus 
E)  $1,162 surplus 
A)  $1,162 deficit 
B)  $88 deficit 
C)  $44 deficit 
D)  $88 surplus 
E)  $1,162 surplus

Question 8

Which of the following will increase the net worth of a household?

Accepted Answer

A)  Decrease saving by $50 per month 
B)  Increase the amount borrowed for major purchases 
C)  Decrease spending by $5 per day 
D)  Invest in possessions whose values do not increase 
E)  Keep an extra $100 in a checking account instead of a savings account 
A)  Decrease saving by $50 per month 
B)  Increase the amount borrowed for major purchases 
C)  Decrease spending by $5 per day 
D)  Invest in possessions whose values do not increase 
E)  Keep an extra $100 in a checking account instead of a savings account

Question 9

The two primary personal financial statements include the personal balance sheet and a credit card payoff statement.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following ratios indicates the number of months in which living expenses can be paid if an emergency arises?

Accepted Answer

A)  Debt ratio 
B)  Current ratio 
C)  Liquidity ratio 
D)  Debt payments ratio 
E)  Savings ratio 
A)  Debt ratio 
B)  Current ratio 
C)  Liquidity ratio 
D)  Debt payments ratio 
E)  Savings ratio

Question 11

All of the following are sources of income except

Accepted Answer

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

Question 12

Items with monetary value 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 13

Money management refers to day-to-day financial activities necessary to manage personal economic resources while working toward long-term financial security.

Accepted Answer

A) True 
 B)False

Question 14

A budget is a record of how a person or family has spent their money.

Accepted Answer

A) True 
 B)False

Question 15

A broker statement is an example of a(n)____________ record.

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 16

The current financial position of an individual or family is best presented with the use of a

Accepted Answer

A)  Budget. 
B)  Cash flow statement. 
C)  Balance sheet. 
D)  Bank statement. 
E)  Time value of money report. 
A)  Budget. 
B)  Cash flow statement. 
C)  Balance sheet. 
D)  Bank statement. 
E)  Time value of money report.

Question 17

The number of personal financial records a household has to organize may seem overwhelming.How long should you keep copies of your tax returns?

Accepted Answer

A)  Until you receive your refund 
B)  Until the end of the current year 
C)  Three years 
D)  Seven years 
E)  Permanently 
A)  Until you receive your refund 
B)  Until the end of the current year 
C)  Three years 
D)  Seven years 
E)  Permanently

Question 18

Which of the following is NOT a component of money management?

Accepted Answer

A)  Storing personal financial records to document business transactions and legal matters. 
B)  Creating personal financial statements to measure and assess financial position and progress. 
C)  Creating a budget. 
D)  None of these are components of money management. 
E)  Storing personal financial records, creating personal financial statements, and creating a budget are all components of money management. 
A)  Storing personal financial records to document business transactions and legal matters. 
B)  Creating personal financial statements to measure and assess financial position and progress. 
C)  Creating a budget. 
D)  None of these are components of money management. 
E)  Storing personal financial records, creating personal financial statements, and creating a budget are all components of money management.

Question 19

Given the following information,calculate net worth:

Accepted Answer

@#IMG-DLM& $131,500
Feedback: Assets - L

Question 20

Records related to tax returns should be saved for 10 years.

Accepted Answer

A) True 
 B)False

The difference between the amount budgeted and the actual amount received or spent is called the

A home file should be used for storing

The document that would be most useful to track spending patterns for the past few months is the

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

Identify what a cash flow statement is and discuss what it is used for.

The amount you would have if everything of value would be sold and all debts would be paid in full is called your

Rebecca Gladlyn budgeted $1,250 for housing and utilities in July.She actually spent $1,162.What is her budget variance?

Which of the following will increase the net worth of a household?

The two primary personal financial statements include the personal balance sheet and a credit card payoff statement.

Which of the following ratios indicates the number of months in which living expenses can be paid if an emergency arises?

All of the following are sources of income except

Items with monetary value are referred to as

Money management refers to day-to-day financial activities necessary to manage personal economic resources while working toward long-term financial security.

A budget is a record of how a person or family has spent their money.

A broker statement is an example of a(n)____________ record.

The current financial position of an individual or family is best presented with the use of a

The number of personal financial records a household has to organize may seem overwhelming.How long should you keep copies of your tax returns?

Which of the following is NOT a component of money management?

Given the following information,calculate net worth:

Records related to tax returns should be saved for 10 years.

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

The difference between the amount budgeted and the actual amount received or spent is called the

A home file should be used for storing

The document that would be most useful to track spending patterns for the past few months is the

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

Identify what a cash flow statement is and discuss what it is used for.

The amount you would have if everything of value would be sold and all debts would be paid in full is called your

Rebecca Gladlyn budgeted $1,250 for housing and utilities in July.She actually spent $1,162.What is her budget variance?

Which of the following will increase the net worth of a household?

The two primary personal financial statements include the personal balance sheet and a credit card payoff statement.

Which of the following ratios indicates the number of months in which living expenses can be paid if an emergency arises?

All of the following are sources of income except

Items with monetary value are referred to as

Money management refers to day-to-day financial activities necessary to manage personal economic resources while working toward long-term financial security.

A budget is a record of how a person or family has spent their money.

A broker statement is an example of a(n)____________ record.

The current financial position of an individual or family is best presented with the use of a

The number of personal financial records a household has to organize may seem overwhelming.How long should you keep copies of your tax returns?

Which of the following is NOT a component of money management?

Given the following information,calculate net worth:

Records related to tax returns should be saved for 10 years.

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