Question 1

Property such as a person's home,car,and furniture is called

Accepted Answer

A)  liquid assets. 
B)  household assets. 
C)  major property assets. 
D)  investment assets. 
A)  liquid assets. 
B)  household assets. 
C)  major property assets. 
D)  investment assets.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Stocks are considered liquid assets since they are easy to sell without a loss in value.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following usually affects cash inflows the most?

Accepted Answer

A)  The education and income of your parents 
B)  Your job skills 
C)  Your personal consumption behavior 
D)  The size of your family 
A)  The education and income of your parents 
B)  Your job skills 
C)  Your personal consumption behavior 
D)  The size of your family

Question 5

Jerry has assets of $200,000,a net worth of $150,000,and an annual income of $100,000.What are Jerry's liabilities?

Accepted Answer

A)  $100,000 
B)  $250,000 
C)  $50,000 
D)  $450,000 
A)  $100,000 
B)  $250,000 
C)  $50,000 
D)  $450,000

Question 6

Use the following two columns of items to answer the matching questions below:
-cash flow statement

Accepted Answer

A) a summary of assets, liabilities and net worth 
B) the difference between cash inflows and outflows 
C) items owned by a household such as a home or car 
D) a financial statement that measures cash inflows and outflows 
A) a summary of assets, liabilities and net worth 
B) the difference between cash inflows and outflows 
C) items owned by a household such as a home or car 
D) a financial statement that measures cash inflows and outflows

Question 7

A personal balance sheet is comprised of

Accepted Answer

A)  your assets, liabilities and net worth. 
B)  your loans and credit card balances. 
C)  monthly loan, credit card and other "fixed" payments. 
D)  gross monthly income less "fixed" payments. 
A)  your assets, liabilities and net worth. 
B)  your loans and credit card balances. 
C)  monthly loan, credit card and other "fixed" payments. 
D)  gross monthly income less "fixed" payments.

Question 8

One advantage of budgeting several months in advance is that you will be warned of potential deficiencies and can determine how to cover them.

Accepted Answer

A) True 
 B)False

Question 9

Lucky Louie has the following cash inflows and outflows: $500 rent,$200 car payment,$100 car repair,$100 discretionary purchases,$300 food,$150 electric bill,$3,500 monthly salary after deductions for tax,etc.,$200 cell phone,$400 repayment of loan to dad,and $500 planned spending on weekend fun.What is Lucky's net cash flow?

Accepted Answer

A)  $1,050 
B)  $200 
C)  $1,150 
D)  Not enough information regarding paycheck 
A)  $1,050 
B)  $200 
C)  $1,150 
D)  Not enough information regarding paycheck

Question 10

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

Accepted Answer

A)  borrow more money, since her debt ratio is low. 
B)  apply for a bank loan, but expect to be turned down. 
C)  borrow approximately $200,000 at below market rates. 
D)  not borrow more money until she pays off her current debt. 
A)  borrow more money, since her debt ratio is low. 
B)  apply for a bank loan, but expect to be turned down. 
C)  borrow approximately $200,000 at below market rates. 
D)  not borrow more money until she pays off her current debt.

Question 11

A personal balance sheet presents

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. 
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.

Question 12

Allison expects her monthly cash inflow after taxes to be $3,000.She also has the following monthly expenses: Rent,$750; student loan payment,$200; utilities,$150; food,$300; recreation,$600; car expenses,$200; clothing,$150. What is Allison's net cash flow for the current month?

Accepted Answer

A)  $2,350 
B)  $650 
C)  ($650) 
D)  $3,000 
A)  $2,350 
B)  $650 
C)  ($650) 
D)  $3,000

Question 13

When you retire,which of the following will be key sources of cash flow?

Accepted Answer

A)  C and D 
B)  Salary and wages 
C)  Interest and dividends 
D)  Social security and 401K 
A)  C and D 
B)  Salary and wages 
C)  Interest and dividends 
D)  Social security and 401K

Question 14

Paying cash for an Alaskan cruise would

Accepted Answer

A)  increase assets. 
B)  decrease assets. 
C)  increase net worth. 
D)  decrease liabilities. 
A)  increase assets. 
B)  decrease assets. 
C)  increase net worth. 
D)  decrease liabilities.

Question 15

Long term liabilities include all of the following except

Accepted Answer

A)  the amount due on a credit card. 
B)  the mortgage on a home. 
C)  three year car loan. 
D)  a student loan. 
A)  the amount due on a credit card. 
B)  the mortgage on a home. 
C)  three year car loan. 
D)  a student loan.

Question 16

Student loans,car loans,and housing loans are good examples of

Accepted Answer

A)  long-term liabilities. 
B)  current liabilities. 
C)  short-term debts. 
D)  personal obligations. 
A)  long-term liabilities. 
B)  current liabilities. 
C)  short-term debts. 
D)  personal obligations.

Question 17

The net worth of an individual or family can be increased by

Accepted Answer

A)  increasing spending. 
B)  increasing liabilities. 
C)  decreasing assets. 
D)  increasing income. 
A)  increasing spending. 
B)  increasing liabilities. 
C)  decreasing assets. 
D)  increasing income.

Question 18

Creating a cash flow statement requires that you determine

Accepted Answer

A)  assets. 
B)  liabilities. 
C)  cash used for expenses. 
D)  market value of investments. 
A)  assets. 
B)  liabilities. 
C)  cash used for expenses. 
D)  market value of investments.

Question 19

Cash inflows tend to be higher for younger individuals and lower for individuals in their 50s.

Accepted Answer

A) True 
 B)False

Question 20

Use the following two columns of items to answer the matching questions below:
-balance sheet

Accepted Answer

A) a summary of assets, liabilities and net worth 
B) the difference between cash inflows and outflows 
C) items owned by a household such as a home or car 
D) a financial statement that measures cash inflows and outflows 
A) a summary of assets, liabilities and net worth 
B) the difference between cash inflows and outflows 
C) items owned by a household such as a home or car 
D) a financial statement that measures cash inflows and outflows

Property such as a person's home,car,and furniture is called

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

Stocks are considered liquid assets since they are easy to sell without a loss in value.

Which of the following usually affects cash inflows the most?

Jerry has assets of $200,000,a net worth of $150,000,and an annual income of $100,000.What are Jerry's liabilities?

Use the following two columns of items to answer the matching questions below: -cash flow statement

A personal balance sheet is comprised of

One advantage of budgeting several months in advance is that you will be warned of potential deficiencies and can determine how to cover them.

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

A personal balance sheet presents

Allison expects her monthly cash inflow after taxes to be $3,000.She also has the following monthly expenses: Rent,$750; student loan payment,$200; utilities,$150; food,$300; recreation,$600; car expenses,$200; clothing,$150. What is Allison's net cash flow for the current month?

When you retire,which of the following will be key sources of cash flow?

Paying cash for an Alaskan cruise would

Long term liabilities include all of the following except

Student loans,car loans,and housing loans are good examples of

The net worth of an individual or family can be increased by

Creating a cash flow statement requires that you determine

Cash inflows tend to be higher for younger individuals and lower for individuals in their 50s.

Use the following two columns of items to answer the matching questions below: -balance sheet

Overview of a Financial Plan

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters

Exam 2: Planning With Personal Financial Statements

Property such as a person's home,car,and furniture is called

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

Stocks are considered liquid assets since they are easy to sell without a loss in value.

Which of the following usually affects cash inflows the most?

Jerry has assets of $200,000,a net worth of $150,000,and an annual income of $100,000.What are Jerry's liabilities?

Use the following two columns of items to answer the matching questions below: -cash flow statement

A personal balance sheet is comprised of

One advantage of budgeting several months in advance is that you will be warned of potential deficiencies and can determine how to cover them.

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

A personal balance sheet presents

Allison expects her monthly cash inflow after taxes to be $3,000.She also has the following monthly expenses: Rent,$750; student loan payment,$200; utilities,$150; food,$300; recreation,$600; car expenses,$200; clothing,$150. What is Allison's net cash flow for the current month?

When you retire,which of the following will be key sources of cash flow?

Paying cash for an Alaskan cruise would

Long term liabilities include all of the following except

Student loans,car loans,and housing loans are good examples of

The net worth of an individual or family can be increased by

Creating a cash flow statement requires that you determine

Cash inflows tend to be higher for younger individuals and lower for individuals in their 50s.

Use the following two columns of items to answer the matching questions below: -balance sheet

Overview of a Financial Plan

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Retirement Planning

Estate Planning

Integrating the Components of a Financial Plan

Filters