Question 1

Discretionary 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 2

The inability to pay debts when they are due is called

Accepted Answer

A)  Liabilities. 
B)  Insolvency. 
C)  Net worth. 
D)  Cash flow. 
E)  Liquid assets. 
A)  Liabilities. 
B)  Insolvency. 
C)  Net worth. 
D)  Cash flow. 
E)  Liquid assets.

Question 3

In an organized system,a will belongs in a home file.

Accepted Answer

A) True 
 B)False

Question 4

A budget system that involves envelopes,folders,or containers to hold money or slips of paper is called a

Accepted Answer

A)  Mental budget. 
B)  Physical budget. 
C)  Written budget. 
D)  Computerized budget. 
E)  Allocated budget. 
A)  Mental budget. 
B)  Physical budget. 
C)  Written budget. 
D)  Computerized budget. 
E)  Allocated budget.

Question 5

Which of the following ratios indicates that liquid assets are available to pay current liabilities for a household?

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 6

In an organized system,account summaries showing the performance results of investments belong in a computer or online.

Accepted Answer

A) True 
 B)False

Question 7

When completing a cash flow statement,deductions are subtracted from salary to determine take-home pay.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following ratios shows the relationship between debt and net worth?

Accepted Answer

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

Question 9

Which of the following ratios indicates the amount of a person's earnings that goes for payments for credit cards,auto loans,and other debt (except mortgage)?

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 10

Financial advisers suggest that an emergency fund should cover one to two months of living expenses.

Accepted Answer

A) True 
 B)False

Question 11

Given the following information from June 30,2012,create a personal balance sheet for Jacob and Jennifer Johnson in good form:

Accepted Answer

The answer of Given the following information from June 30,2012,create...

Question 12

Why can a spending diary be helpful?

Accepted Answer

A spending diary is

Question 13

In an organized system,credit card records belong in a safe deposit box.

Accepted Answer

A) True 
 B)False

Question 14

How can personal financial statements and a budget allow you to achieve your financial goals?

Accepted Answer

The personal balance sheet reports the c

Question 15

Rebecca Gladlyn budgeted $375 for a new wardrobe in June.She actually spent $408.What is her budget variance?

Accepted Answer

A)  $408 deficit 
B)  $33 deficit 
C)  $783 deficit 
D)  $33 surplus 
E)  $375 surplus 
A)  $408 deficit 
B)  $33 deficit 
C)  $783 deficit 
D)  $33 surplus 
E)  $375 surplus

Question 16

One method to save more money is to write a check each payday and deposit it in a savings account not readily available for regular spending.

Accepted Answer

A) True 
 B)False

Question 17

A budget system that can be kept on notebook paper or budgeting paper is called a

Accepted Answer

A)  Mental budget. 
B)  Physical budget. 
C)  Written budget. 
D)  Computerized budget. 
E)  Allocated budget. 
A)  Mental budget. 
B)  Physical budget. 
C)  Written budget. 
D)  Computerized budget. 
E)  Allocated budget.

Question 18

After the budget is created,it is important to

Accepted Answer

A)  File the budget in a safe deposit box. 
B)  Compare it to the previous budget. 
C)  Track spending and identify variances. 
D)  Pay attention only to expenses that are more than 10 percent of your salary. 
E)  None of these are true since budgets are just estimates. 
A)  File the budget in a safe deposit box. 
B)  Compare it to the previous budget. 
C)  Track spending and identify variances. 
D)  Pay attention only to expenses that are more than 10 percent of your salary. 
E)  None of these are true since budgets are just estimates.

Question 19

The current financial position of an individual or family is a common starting point for financial planning.

Accepted Answer

A) True 
 B)False

Question 20

The focus of an organized system of financial records is to reduce credit card usage.

Accepted Answer

A) True 
 B)False

Discretionary income equals

The inability to pay debts when they are due is called

In an organized system,a will belongs in a home file.

A budget system that involves envelopes,folders,or containers to hold money or slips of paper is called a

Which of the following ratios indicates that liquid assets are available to pay current liabilities for a household?

In an organized system,account summaries showing the performance results of investments belong in a computer or online.

When completing a cash flow statement,deductions are subtracted from salary to determine take-home pay.

Which of the following ratios shows the relationship between debt and net worth?

Which of the following ratios indicates the amount of a person's earnings that goes for payments for credit cards,auto loans,and other debt (except mortgage)?

Financial advisers suggest that an emergency fund should cover one to two months of living expenses.

Given the following information from June 30,2012,create a personal balance sheet for Jacob and Jennifer Johnson in good form:

Why can a spending diary be helpful?

In an organized system,credit card records belong in a safe deposit box.

How can personal financial statements and a budget allow you to achieve your financial goals?

Rebecca Gladlyn budgeted $375 for a new wardrobe in June.She actually spent $408.What is her budget variance?

One method to save more money is to write a check each payday and deposit it in a savings account not readily available for regular spending.

A budget system that can be kept on notebook paper or budgeting paper is called a

After the budget is created,it is important to

The current financial position of an individual or family is a common starting point for financial planning.

The focus of an organized system of financial records is to reduce credit card usage.

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

Discretionary income equals

The inability to pay debts when they are due is called

In an organized system,a will belongs in a home file.

A budget system that involves envelopes,folders,or containers to hold money or slips of paper is called a

Which of the following ratios indicates that liquid assets are available to pay current liabilities for a household?

In an organized system,account summaries showing the performance results of investments belong in a computer or online.

When completing a cash flow statement,deductions are subtracted from salary to determine take-home pay.

Which of the following ratios shows the relationship between debt and net worth?

Which of the following ratios indicates the amount of a person's earnings that goes for payments for credit cards,auto loans,and other debt (except mortgage)?

Financial advisers suggest that an emergency fund should cover one to two months of living expenses.

Given the following information from June 30,2012,create a personal balance sheet for Jacob and Jennifer Johnson in good form:

Why can a spending diary be helpful?

In an organized system,credit card records belong in a safe deposit box.

How can personal financial statements and a budget allow you to achieve your financial goals?

Rebecca Gladlyn budgeted $375 for a new wardrobe in June.She actually spent $408.What is her budget variance?

One method to save more money is to write a check each payday and deposit it in a savings account not readily available for regular spending.

A budget system that can be kept on notebook paper or budgeting paper is called a

After the budget is created,it is important to

The current financial position of an individual or family is a common starting point for financial planning.

The focus of an organized system of financial records is to reduce credit card usage.

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