Question 1

Cameron has $17,000 in monetary assets and $4,000 in current liabilities.What is his current ratio?

Accepted Answer

A) 17,000/4,000 
B) .535 times 
C) 5 times 
D) 13,000/4,000 
A) 17,000/4,000 
B) .535 times 
C) 5 times 
D) 13,000/4,000 A

Question 2

A debt ratio is aimed at determining if you have adequate liquidity to meet emergencies.

Accepted Answer

A) True 
 B)False  False

Question 3

An income statement tracks the amount of money you have coming in and going out over some period of time,such as a month or a year.

Accepted Answer

A) True 
 B)False  True

Question 4

If your liabilities are greater than the value of your assets you are considered

Accepted Answer

A) unstable. 
B) bankrupt. 
C) insolvent. 
D) unbalanced. 
A) unstable. 
B) bankrupt. 
C) insolvent. 
D) unbalanced.

Question 5

Having negative net income every once in a while is not such a bad thing as long as you have planned for it.

Accepted Answer

A) True 
 B)False

Question 6

What are the four choices in managing your financial affairs?

Accepted Answer

The most simple approach is to manage yo

Question 7

Suppose that you have been operating an online marketing business out of your home,and the business has recently expanded beyond belief.Since you have neglected your personal finances for some time,what would you do as a first step?

Accepted Answer

A) Separate your personal finances from the business finances. 
B) Combine your personal finances and business finances to save time. 
C) Rent a separate office for your business activities. 
D) Purchase a software program to handle both your business and personal finance at the same time. 
A) Separate your personal finances from the business finances. 
B) Combine your personal finances and business finances to save time. 
C) Rent a separate office for your business activities. 
D) Purchase a software program to handle both your business and personal finance at the same time.

Question 8

Assuming that they have no current bills other than those that are listed,what is their current ratio?

Accepted Answer

A) 0.59 times 
B) 2,000/1,000 
C) 2 times 
D) Both B and C are correct. 
E) Not enough information available 
A) 0.59 times 
B) 2,000/1,000 
C) 2 times 
D) Both B and C are correct. 
E) Not enough information available

Question 9

What is their current net worth?

Accepted Answer

A) $13,000 
B) $22,000 
C) $9,000 
D) $35,000 
E) $(13,000) 
A) $13,000 
B) $22,000 
C) $9,000 
D) $35,000 
E) $(13,000)

Question 10

According the Keown book,which Web-based personal financial planning website is known as "the best free way to manage your money?"

Accepted Answer

A) Mint.com 
B) Levelmoney.com 
C) YahooFinance.com 
D) WSJ.com 
A) Mint.com 
B) Levelmoney.com 
C) YahooFinance.com 
D) WSJ.com

Question 11

What is their debt ratio?

Accepted Answer

A) 169 percent 
B) 1.69 times 
C) 0.59 percent 
D) 0.59 times 
E) 2 times 
A) 169 percent 
B) 1.69 times 
C) 0.59 percent 
D) 0.59 times 
E) 2 times

Question 12

A(n)________ is a reserve or rainy-day fund with money set aside to be used for unexpected expenses or when normal income has been disrupted.

Accepted Answer

A) emergency fund 
B) umbrella fund 
C) resources fund 
D) risk fund 
A) emergency fund 
B) umbrella fund 
C) resources fund 
D) risk fund

Question 13

A physical asset such as a high-definition,flat-screen TV or a Harley Davidson motorcycle is called a(n)

Accepted Answer

A) financial asset. 
B) liability. 
C) tangible asset. 
D) investment. 
A) financial asset. 
B) liability. 
C) tangible asset. 
D) investment.

Question 14

A budget is a process of setting spending goals for the upcoming month or year.

Accepted Answer

A) True 
 B)False

Question 15

Describe how to implement the "envelope" budgeting system.

Accepted Answer

For those new to budgeting or those with

Question 16

According to the Keown book,an emergency fund consists of liquid assets that are sufficient to cover ________ of expenditures.

Accepted Answer

A) 1 to 2 months 
B) 3 to 6 months 
C) 9 to 12 months 
D) 18 to 36 months 
A) 1 to 2 months 
B) 3 to 6 months 
C) 9 to 12 months 
D) 18 to 36 months

Question 17

To determine your net worth,subtract your liabilities from your positive net equity.

Accepted Answer

A) True 
 B)False

Question 18

What are some benefits of using a mobile app coupled with a Web-based personal financial planning website? Which two websites/apps are highly recommended by the author?

Accepted Answer

Many personal financial planning apps an

Question 19

In general,how long should you keep records dealing with taxes?

Accepted Answer

A) 6 months 
B) 2 years 
C) 6 years 
D) 10 years 
A) 6 months 
B) 2 years 
C) 6 years 
D) 10 years

Question 20

The term "fair market value" refers to

Accepted Answer

A) what an asset could be sold for today. 
B) what you paid when you purchased an asset. 
C) what an asset will be worth at some point in the future. 
D) how the price of an asset has changed since its original purchase. 
A) what an asset could be sold for today. 
B) what you paid when you purchased an asset. 
C) what an asset will be worth at some point in the future. 
D) how the price of an asset has changed since its original purchase.

Cameron has $17,000 in monetary assets and $4,000 in current liabilities.What is his current ratio?

A debt ratio is aimed at determining if you have adequate liquidity to meet emergencies.

An income statement tracks the amount of money you have coming in and going out over some period of time,such as a month or a year.

If your liabilities are greater than the value of your assets you are considered

Having negative net income every once in a while is not such a bad thing as long as you have planned for it.

What are the four choices in managing your financial affairs?

Suppose that you have been operating an online marketing business out of your home,and the business has recently expanded beyond belief.Since you have neglected your personal finances for some time,what would you do as a first step?

Assuming that they have no current bills other than those that are listed,what is their current ratio?

What is their current net worth?

According the Keown book,which Web-based personal financial planning website is known as "the best free way to manage your money?"

What is their debt ratio?

A(n)________ is a reserve or rainy-day fund with money set aside to be used for unexpected expenses or when normal income has been disrupted.

A physical asset such as a high-definition,flat-screen TV or a Harley Davidson motorcycle is called a(n)

A budget is a process of setting spending goals for the upcoming month or year.

Describe how to implement the "envelope" budgeting system.

According to the Keown book,an emergency fund consists of liquid assets that are sufficient to cover ________ of expenditures.

To determine your net worth,subtract your liabilities from your positive net equity.

What are some benefits of using a mobile app coupled with a Web-based personal financial planning website? Which two websites/apps are highly recommended by the author?

In general,how long should you keep records dealing with taxes?

The term "fair market value" refers to

The Financial Planning Process

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters

Exam 2: Measuring Your Financial Health and Making a Plan

Cameron has $17,000 in monetary assets and $4,000 in current liabilities.What is his current ratio?

A debt ratio is aimed at determining if you have adequate liquidity to meet emergencies.

An income statement tracks the amount of money you have coming in and going out over some period of time,such as a month or a year.

If your liabilities are greater than the value of your assets you are considered

Having negative net income every once in a while is not such a bad thing as long as you have planned for it.

What are the four choices in managing your financial affairs?

Suppose that you have been operating an online marketing business out of your home,and the business has recently expanded beyond belief.Since you have neglected your personal finances for some time,what would you do as a first step?

Assuming that they have no current bills other than those that are listed,what is their current ratio?

What is their current net worth?

According the Keown book,which Web-based personal financial planning website is known as "the best free way to manage your money?"

What is their debt ratio?

A(n)________ is a reserve or rainy-day fund with money set aside to be used for unexpected expenses or when normal income has been disrupted.

A physical asset such as a high-definition,flat-screen TV or a Harley Davidson motorcycle is called a(n)

A budget is a process of setting spending goals for the upcoming month or year.

Describe how to implement the "envelope" budgeting system.

According to the Keown book,an emergency fund consists of liquid assets that are sufficient to cover ________ of expenditures.

To determine your net worth,subtract your liabilities from your positive net equity.

What are some benefits of using a mobile app coupled with a Web-based personal financial planning website? Which two websites/apps are highly recommended by the author?

In general,how long should you keep records dealing with taxes?

The term "fair market value" refers to

The Financial Planning Process

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters