Exam 2: Planning With Personal Financial Statements

Jennifer has assets of $100,000 and $10,000 of debt.She could

Cash inflows tend to be the highest in which of the following?

Creating a cash flow statement requires that you determine

A(n)________ is a forecast of your future cash inflows and outflows.

One of the problems in making a monthly budget is that some expenses fluctuate quite a bit from month to month.

All of the following affect cash outflows except

Which one of the following is a liquid asset?

A three-month budget is easier to prepare,anticipates large and unusual expenditures,and gives a better picture than a twelve-month budget.

David's liquidity ratio is 3.0.He has $1,000 in current liabilities.Therefore,he has ________ worth of liquid assets. (a)$3,000 (b)$333 (c)$4,000 (d)$700

Individuals who switch from a low-demand industry to a high-demand industry usually earn higher incomes.

List three components of your personal balance sheet and two components of your income statement.

Balance sheet assets should be valued at

If your net cash inflows exceed your net cash outflows,you can increase your net worth by investing the difference in more ________.

If your current debt to asset ratio is 50%,which of the following will increase it?

Jerry has assets of $200,000,a net worth of $150,000,and an annual income of $100,000.What are Jerry's liabilities? (a)$100,000 (b)$250,000 (c)$50,000 (d)$450,000

Jim has $1,000 income from his job and $200 stock dividend income this month.This month Jim has rent and utilities of $300 and he spent $300 on groceries and $200 on clothing.What is his cash inflow this month?

Salary or wages are the only cash inflows for working people.

The personal cash flow statement measures

The cash in your wallet,your checking account balance,and your savings account comprise your ________ assets.

Detecting future cash flow overages and deficiencies in cash inflows and outflows improves with practice in the budgeting process.