Question 1

A personal balance sheet presents

Accepted Answer

A)  items owned and amounts owed. 
B)  income and expenses for a period of time. 
C)  earnings on savings and investments. 
D)  amounts budgeted for spending 
E)  family financial goals. 
A)  items owned and amounts owed. 
B)  income and expenses for a period of time. 
C)  earnings on savings and investments. 
D)  amounts budgeted for spending 
E)  family financial goals.

Question 2

A person's net worth would increase as a result of

Accepted Answer

A)  increased value on investments 
B)  reduced earnings. 
C)  increased spending for current living expenses. 
D)  decreased value of personal possessions. 
E)  increased amounts owed to others. 
A)  increased value on investments 
B)  reduced earnings. 
C)  increased spending for current living expenses. 
D)  decreased value of personal possessions. 
E)  increased amounts owed to others.

Question 3

Common reasons for saving money include:

Accepted Answer

A)  To set aside money for irregular and unexpected expenses 
B)  To pay for the replacement of expensive items, such as appliances or an automobile, or to have money for a down payment on a house 
C)  To buy special items, such as home video or recreational equipment, or to pay for a vacation 
D)  To provide for long-term expenses, such as the education of children or retirement. 
E)  All of the above 
A)  To set aside money for irregular and unexpected expenses 
B)  To pay for the replacement of expensive items, such as appliances or an automobile, or to have money for a down payment on a house 
C)  To buy special items, such as home video or recreational equipment, or to pay for a vacation 
D)  To provide for long-term expenses, such as the education of children or retirement. 
E)  All of the above

Question 4

A cash flow statement is a record of how a person or family has earned and spent their money.

Accepted Answer

A) True 
 B)False

Question 5

Under a direct deposit system the bank will make an automatic debit from your bank account and have the funds transferred periodically to an investment account.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The main purpose of a budget is to help you

Accepted Answer

A)  Live within your income and spend your money wisely 
B)  Prioritize and attain your financial goals 
C)  Prepare for financial emergencies 
D)  Develop wise financial management habits 
E)  All of the above 
A)  Live within your income and spend your money wisely 
B)  Prioritize and attain your financial goals 
C)  Prepare for financial emergencies 
D)  Develop wise financial management habits 
E)  All of the above

Question 8

What are the 7 steps in creating and implementing a budget?

Accepted Answer

[1] Setting financial goals.
[2] Estimat

Question 9

Insolvency is a result of having an unequal balance of tangible and intangible goods.

Accepted Answer

A) True 
 B)False

Question 10

A cash flow statement reports a person's or a family's

Accepted Answer

A)  net worth. 
B)  current income and payments. 
C)  plan for spending. 
D)  value of investments. 
E)  balance of savings. 
A)  net worth. 
B)  current income and payments. 
C)  plan for spending. 
D)  value of investments. 
E)  balance of savings.

Question 11

Liabilities are cash and items of value that can be easily converted to cash.

Accepted Answer

A) True 
 B)False

Question 12

A person's net worth would increase as a result of

Accepted Answer

A)  decreased value on investments 
B)  reduced earnings. 
C)  increased spending for current living expenses. 
D)  increased value of personal possessions. 
E)  increased amount owed to others. 
A)  decreased value on investments 
B)  reduced earnings. 
C)  increased spending for current living expenses. 
D)  increased value of personal possessions. 
E)  increased amount owed to others.

Question 13

Current liabilities are amounts that must be paid within a short period of time, usually less than a year.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)  Zero 
B)  $1,500 
C)  $4,500 
D)  $9,000 
E)  $3,000 
A)  Zero 
B)  $1,500 
C)  $4,500 
D)  $9,000 
E)  $3,000

Question 15

This year Phil's gross income is $80,000. His deductions for federal and provincial taxes, CPP contributions and employment insurance are $16,000. He also had after-tax investment earnings of $6,000. Taylor's take-home pay is:

Accepted Answer

A)  $80,000 
B)  $86,000 
C)  $70,000 
D)  $64,000 
E)  $58,000 
A)  $80,000 
B)  $86,000 
C)  $70,000 
D)  $64,000 
E)  $58,000

Question 16

During the last month, Astrid had expenses of $6,000 and an increase in net worth of $100. This means Astrid's income for the month was:

Accepted Answer

A)  $6,000 
B)  $5,900 
C)  $6,100 
D)  $5,700 
E)  $5,200 
A)  $6,000 
B)  $5,900 
C)  $6,100 
D)  $5,700 
E)  $5,200

Question 17

A person with $80,000 in assets and $122,000 of liabilities would have a net worth of:

Accepted Answer

A)  $80,000. 
B)  $122,000. 
C)  $202,000 
D)  $42,000. 
E)  - $42,000. 
A)  $80,000. 
B)  $122,000. 
C)  $202,000 
D)  $42,000. 
E)  - $42,000.

Question 18

A home file should be used for:

Accepted Answer

A)  storing all financial documents and records. 
B)  obsolete financial documents. 
C)  documents that require maximum security. 
D)  financial records for current needs. 
E)  records that are difficult to replace. 
A)  storing all financial documents and records. 
B)  obsolete financial documents. 
C)  documents that require maximum security. 
D)  financial records for current needs. 
E)  records that are difficult to replace.

Question 19

Evidence exists that a person's choice of employment influences his or her lifestyle.

Accepted Answer

A) True 
 B)False

Question 20

What are the main components of a personal balance sheet and a cash flow statement? What is the main purpose of each of these personal financial statements?

Accepted Answer

A personal balance sheet is a net worth

A personal balance sheet presents

A person's net worth would increase as a result of

Common reasons for saving money include:

A cash flow statement is a record of how a person or family has earned and spent their money.

Under a direct deposit system the bank will make an automatic debit from your bank account and have the funds transferred periodically to an investment account.

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

The main purpose of a budget is to help you

What are the 7 steps in creating and implementing a budget?

Insolvency is a result of having an unequal balance of tangible and intangible goods.

A cash flow statement reports a person's or a family's

Liabilities are cash and items of value that can be easily converted to cash.

A person's net worth would increase as a result of

Current liabilities are amounts that must be paid within a short period of time, usually less than a year.

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

This year Phil's gross income is $80,000. His deductions for federal and provincial taxes, CPP contributions and employment insurance are $16,000. He also had after-tax investment earnings of $6,000. Taylor's take-home pay is:

During the last month, Astrid had expenses of $6,000 and an increase in net worth of $100. This means Astrid's income for the month was:

A person with $80,000 in assets and $122,000 of liabilities would have a net worth of:

A home file should be used for:

Evidence exists that a person's choice of employment influences his or her lifestyle.

What are the main components of a personal balance sheet and a cash flow statement? What is the main purpose of each of these personal financial statements?

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

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Exam 2: Money Management Strategy: Financial Statements and Budgeting

A personal balance sheet presents

A person's net worth would increase as a result of

Common reasons for saving money include:

A cash flow statement is a record of how a person or family has earned and spent their money.

Under a direct deposit system the bank will make an automatic debit from your bank account and have the funds transferred periodically to an investment account.

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

The main purpose of a budget is to help you

What are the 7 steps in creating and implementing a budget?

Insolvency is a result of having an unequal balance of tangible and intangible goods.

A cash flow statement reports a person's or a family's

Liabilities are cash and items of value that can be easily converted to cash.

A person's net worth would increase as a result of

Current liabilities are amounts that must be paid within a short period of time, usually less than a year.

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

This year Phil's gross income is $80,000. His deductions for federal and provincial taxes, CPP contributions and employment insurance are $16,000. He also had after-tax investment earnings of $6,000. Taylor's take-home pay is:

During the last month, Astrid had expenses of $6,000 and an increase in net worth of $100. This means Astrid's income for the month was:

A person with $80,000 in assets and $122,000 of liabilities would have a net worth of:

A home file should be used for:

Evidence exists that a person's choice of employment influences his or her lifestyle.

What are the main components of a personal balance sheet and a cash flow statement? What is the main purpose of each of these personal financial statements?

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