Question 1

Liabilities are amounts representing

Accepted Answer

A)  taxable income 
B)  items of value. 
C)  living expenses. 
D)  debts 
E)  current assets. 
A)  taxable income 
B)  items of value. 
C)  living expenses. 
D)  debts 
E)  current assets.

Question 2

Which of the following situations is a person who could be insolvent?

Accepted Answer

A)  Assets $50,000; annual expenses $60,000 
B)  Assets $68,000; net worth $22,000 
C)  Liabilities $45,000; net worth $6,000 
D)  Assets $5,000; liabilities $6,000 
E)  Annual cash inflows $48,000; liabilities $50,000 
A)  Assets $50,000; annual expenses $60,000 
B)  Assets $68,000; net worth $22,000 
C)  Liabilities $45,000; net worth $6,000 
D)  Assets $5,000; liabilities $6,000 
E)  Annual cash inflows $48,000; liabilities $50,000

Question 3

Items with a monetary worth 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 4

Which of the following financial documents would most likely be stored in a home file?

Accepted Answer

A)  Serial numbers of expensive items 
B)  Personal financial statements 
C)  Mortgage papers, title deed 
D)  Birth, marriage and death certificates 
E)  Guaranteed investment securities 
A)  Serial numbers of expensive items 
B)  Personal financial statements 
C)  Mortgage papers, title deed 
D)  Birth, marriage and death certificates 
E)  Guaranteed investment securities

Question 5

A family with $70,000 in assets and $22,000 of liabilities would have a net worth of:

Accepted Answer

A)  $70,000. 
B)  $22,000. 
C)  $48,000 
D)  $92,000. 
E)  $41,000. 
A)  $70,000. 
B)  $22,000. 
C)  $48,000 
D)  $92,000. 
E)  $41,000.

Question 6

Most Canadians have an adequate savings for emergencies.

Accepted Answer

A) True 
 B)False

Question 7

Janice spends a total of $1,500 a month to cover all living expenses. Which of the following would represent the appropriate emergency fund?

Accepted Answer

A)  $1,500 to $4,500 
B)  $3,000 to $7,500 
C)  $4,500 to $9,000 
D)  $5,000 to $10,000 
E)  $6,000 to $12,000 
A)  $1,500 to $4,500 
B)  $3,000 to $7,500 
C)  $4,500 to $9,000 
D)  $5,000 to $10,000 
E)  $6,000 to $12,000

Question 8

Which of the following financial documents would most likely be stored in a safety deposit box?

Accepted Answer

A)  Company pension information 
B)  Personal financial statements 
C)  Warranties 
D)  Birth, marriage and death certificates 
E)  Checking account statements 
A)  Company pension information 
B)  Personal financial statements 
C)  Warranties 
D)  Birth, marriage and death certificates 
E)  Checking account statements

Question 9

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 10

An individual retirement account is an example of a(n) ____________ asset.

Accepted Answer

A)  liquid 
B)  common 
C)  investment 
D)  household 
E)  budgeted 
A)  liquid 
B)  common 
C)  investment 
D)  household 
E)  budgeted

Question 11

A person's net worth is the difference between the value of the items owned and the amounts owed to others.

Accepted Answer

A) True 
 B)False

Question 12

Changes in the cost of living are

Accepted Answer

A)  different in various geographic areas. 
B)  the same for different locations. 
C)  constant from month to month. 
D)  the same for all goods and services. 
E)  not a factor when preparing a budget. 
A)  different in various geographic areas. 
B)  the same for different locations. 
C)  constant from month to month. 
D)  the same for all goods and services. 
E)  not a factor when preparing a budget.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

"Sharing the bills" is a budgeting strategy for two-income households where each partner contributes an equal amount into the pool.

Accepted Answer

A) True 
 B)False

Question 15

During the past month, Jennifer Sinnet had income of $3,500 and a decrease in net worth of $200. This means Jennifer's payments for the month were:

Accepted Answer

A)  $3,700. 
B)  $3,300. 
C)  $2,800. 
D)  $1,000. 
E)  $200. 
A)  $3,700. 
B)  $3,300. 
C)  $2,800. 
D)  $1,000. 
E)  $200.

Question 16

A person's lifestyle is a reflection of his or her values, goals, career, and family situation.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

A major expenditure for most families is

Accepted Answer

A)  insurance. 
B)  contributions. 
C)  clothing. 
D)  utilities. 
E)  transportation. 
A)  insurance. 
B)  contributions. 
C)  clothing. 
D)  utilities. 
E)  transportation.

Question 19

The Crown family has a difficult time staying on a budget. In an effort to actually see what funds are available for various expenses, a ____________ budget would be most appropriate.

Accepted Answer

A)  written 
B)  computerized 
C)  physical 
D)  deficit 
E)  mental 
A)  written 
B)  computerized 
C)  physical 
D)  deficit 
E)  mental

Question 20

Current liabilities differ from long-term liabilities based on

Accepted Answer

A)  the amount owed. 
B)  the financial situation of the creditor. 
C)  the interest rate charged. 
D)  when the debt is due. 
E)  current economic conditions. 
A)  the amount owed. 
B)  the financial situation of the creditor. 
C)  the interest rate charged. 
D)  when the debt is due. 
E)  current economic conditions.

Liabilities are amounts representing

Which of the following situations is a person who could be insolvent?

Items with a monetary worth are referred to as:

Which of the following financial documents would most likely be stored in a home file?

A family with $70,000 in assets and $22,000 of liabilities would have a net worth of:

Most Canadians have an adequate savings for emergencies.

Janice spends a total of $1,500 a month to cover all living expenses. Which of the following would represent the appropriate emergency fund?

Which of the following financial documents would most likely be stored in a safety deposit box?

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

An individual retirement account is an example of a(n) ____________ asset.

A person's net worth is the difference between the value of the items owned and the amounts owed to others.

Changes in the cost of living are

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

"Sharing the bills" is a budgeting strategy for two-income households where each partner contributes an equal amount into the pool.

During the past month, Jennifer Sinnet had income of $3,500 and a decrease in net worth of $200. This means Jennifer's payments for the month were:

A person's lifestyle is a reflection of his or her values, goals, career, and family situation.

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

A major expenditure for most families is

The Crown family has a difficult time staying on a budget. In an effort to actually see what funds are available for various expenses, a ____________ budget would be most appropriate.

Current liabilities differ from long-term liabilities based on

Personal Financial Planning: An Introduction

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source Credit: the Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters

Exam 2: Money Management Strategy: Financial Statements and Budgeting

Liabilities are amounts representing

Which of the following situations is a person who could be insolvent?

Items with a monetary worth are referred to as:

Which of the following financial documents would most likely be stored in a home file?

A family with $70,000 in assets and $22,000 of liabilities would have a net worth of:

Most Canadians have an adequate savings for emergencies.

Janice spends a total of $1,500 a month to cover all living expenses. Which of the following would represent the appropriate emergency fund?

Which of the following financial documents would most likely be stored in a safety deposit box?

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

An individual retirement account is an example of a(n) ____________ asset.

A person's net worth is the difference between the value of the items owned and the amounts owed to others.

Changes in the cost of living are

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

"Sharing the bills" is a budgeting strategy for two-income households where each partner contributes an equal amount into the pool.

During the past month, Jennifer Sinnet had income of $3,500 and a decrease in net worth of $200. This means Jennifer's payments for the month were:

A person's lifestyle is a reflection of his or her values, goals, career, and family situation.

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

A major expenditure for most families is

The Crown family has a difficult time staying on a budget. In an effort to actually see what funds are available for various expenses, a ____________ budget would be most appropriate.

Current liabilities differ from long-term liabilities based on

Personal Financial Planning: An Introduction

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source Credit: the Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters