Exam 2: Planning With Personal Financial Statements

Margaret has $5,000 in her checking account,a home with a market value of $175,000,and stocks valued at $10,000.Margaret also has a credit card debt of $15,000.Margaret's liquidity ratio is

A personal cash flow statement is usually the starting point for an individual's or family's budget.

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

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

Many individuals tend to ________ their cash inflows and ________ their outflows.

You save the same dollar amount from each paycheck during your career.As your income increases,your savings rate will

Which of the following is a liquid asset?

A low liquidity ratio means that

An investment company that sell shares to individuals and then invests the proceeds in stocks or bonds is called a

Which of the following statements about stocks is not true?

Detecting future cash flow shortages improves with practice in the budgeting process.

If spending exceeds the amount of your income over a period of time,your best option is probably to

Budgeting is a starting point for developing your financial plan.A good understanding of cash inflows and outflows,or what you make and spend is essential.Describe one way to increase your cash inflows and one way to decrease your personal outflows.

Which of the following will increase your debt?

Getting financial help from family and friends is easy and should be your first option in case of an emergency.

The most common error people make is to underestimate cash inflows and overestimate cash outflows.

Which cash inflow will probably be discontinued after retirement?

Use the following two columns of items to answer the matching questions below: -household assets

Which of the following is not an appropriate approach to solving the problem of an annual budget deficiency?

Which of the following is not a key budgeting influence for a personal financial plan?