Question 1

A personal balance sheet reports

Accepted Answer

A)  Amounts budgeted for spending. 
B)  Income and expenses for a period of time. 
C)  Earnings on savings and investments. 
D)  Items owned and amounts owed. 
E)  Family financial goals. 
A)  Amounts budgeted for spending. 
B)  Income and expenses for a period of time. 
C)  Earnings on savings and investments. 
D)  Items owned and amounts owed. 
E)  Family financial goals.

Question 2

When creating a personal balance sheet, which of the following is a current liability?

Accepted Answer

A)  Checking account 
B)  Mortgage 
C)  Educational loan 
D)  Auto loan 
E)  Medical bill 
A)  Checking account 
B)  Mortgage 
C)  Educational loan 
D)  Auto loan 
E)  Medical bill

Question 3

A mortgage is an amount borrowed to buy a tv or other personal possession.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

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

Question 5

Which of the following is a cash inflow?

Accepted Answer

A)  Payment for rent 
B)  Purchase of groceries 
C)  Payment for loan 
D)  Income from employment 
E)  Payment for medical expenses 
A)  Payment for rent 
B)  Purchase of groceries 
C)  Payment for loan 
D)  Income from employment 
E)  Payment for medical expenses

Question 6

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 7

Copies of tax returns and supporting data should be saved for 10 years.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

An example of a variable expense is a(n)

Accepted Answer

A)  Mortgage or rent payment. 
B)  Installment loan payment. 
C)  Monthly train ticket for commuting to work. 
D)  Monthly allocation for life insurance. 
E)  Electric bill. 
A)  Mortgage or rent payment. 
B)  Installment loan payment. 
C)  Monthly train ticket for commuting to work. 
D)  Monthly allocation for life insurance. 
E)  Electric bill.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

Which of the following is a liquid asset?

Accepted Answer

A)  Savings/money market accounts 
B)  Cash value of life insurance 
C)  Checking account balance 
D)  Money market accounts 
E)  All of the above are liquid assets 
A)  Savings/money market accounts 
B)  Cash value of life insurance 
C)  Checking account balance 
D)  Money market accounts 
E)  All of the above are liquid assets

Question 13

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)  Increase spending by $5 per day 
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)  Increase spending by $5 per day

Question 14

Another name for a statement of financial position is a

Accepted Answer

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

Question 15

Rebecca Wilson budgeted $1,200 for housing and utilities in July. She actually spent $1,160. What is her budget variance?

Accepted Answer

A)  $1,160 deficit 
B)  $40 deficit 
C)  $60 deficit 
D)  $40 surplus 
E)  $1,160 surplus 
A)  $1,160 deficit 
B)  $40 deficit 
C)  $60 deficit 
D)  $40 surplus 
E)  $1,160 surplus

Question 16

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 17

Given the following information, calculate the net worth: Assets = $8,000
Cash inflows = $6,000
Cash outflows = $4,500
Liabilities = $4,000

Accepted Answer

A)  $500 
B)  $1,500 
C)  $2,000 
D)  $3,500 
E)  $4,000 
A)  $500 
B)  $1,500 
C)  $2,000 
D)  $3,500 
E)  $4,000

Question 18

Financial documents that you may need quick access to should be kept in a safe deposit box.

Accepted Answer

A) True 
 B)False

Question 19

All of the following are ways that households can increase their net worth except

Accepted Answer

A)  Increase their savings. 
B)  Reduce spending. 
C)  Increase value of investments. 
D)  Reduce amounts owed. 
E)  Increase their debt ratio. 
A)  Increase their savings. 
B)  Reduce spending. 
C)  Increase value of investments. 
D)  Reduce amounts owed. 
E)  Increase their debt ratio.

Question 20

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

Accepted Answer

A) True 
 B)False

A personal balance sheet reports

When creating a personal balance sheet, which of the following is a current liability?

A mortgage is an amount borrowed to buy a tv or other personal possession.

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

Which of the following is a cash inflow?

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

Copies of tax returns and supporting data should be saved for 10 years.

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

An example of a variable expense is a(n)

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

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

Which of the following is a liquid asset?

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

Another name for a statement of financial position is a

Rebecca Wilson budgeted $1,200 for housing and utilities in July. She actually spent $1,160. What is her budget variance?

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

Given the following information, calculate the net worth: Assets = $8,000 Cash inflows = $6,000 Cash outflows = $4,500 Liabilities = $4,000

Financial documents that you may need quick access to should be kept in a safe deposit box.

All of the following are ways that households can increase their net worth except

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

Personal Financial Planning in Action

Taxes in Your Financial Plan

Financial Services: Saving Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Insurance

Financial Planning With Life Insurance

Investing Fundamentals and Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Filters

Exam 2: Money Management Skills

A personal balance sheet reports

When creating a personal balance sheet, which of the following is a current liability?

A mortgage is an amount borrowed to buy a tv or other personal possession.

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

Which of the following is a cash inflow?

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

Copies of tax returns and supporting data should be saved for 10 years.

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

An example of a variable expense is a(n)

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

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

Which of the following is a liquid asset?

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

Another name for a statement of financial position is a

Rebecca Wilson budgeted $1,200 for housing and utilities in July. She actually spent $1,160. What is her budget variance?

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

Given the following information, calculate the net worth: Assets = $8,000 Cash inflows = $6,000 Cash outflows = $4,500 Liabilities = $4,000

Financial documents that you may need quick access to should be kept in a safe deposit box.

All of the following are ways that households can increase their net worth except

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

Personal Financial Planning in Action

Taxes in Your Financial Plan

Financial Services: Saving Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Insurance

Financial Planning With Life Insurance

Investing Fundamentals and Bonds

Investing in Stocks

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Filters