Question 1

Which financial planning document should you use to measure your current financial condition?

Accepted Answer

A) Budget 
B) Cash budget 
C) Balance sheet 
D) Income statement 
E) Statement of financial ratios 
A) Budget 
B) Cash budget 
C) Balance sheet 
D) Income statement 
E) Statement of financial ratios

Question 2

Explain the relationship between the debt ratio and insolvency?

Accepted Answer

The debt ratio shows the relationship be

Question 3

An expenditure over which you have control and are not obligated to make,and which may vary from month to month is called a ________ expenditure.

Accepted Answer

A) fixed 
B) flexible 
C) liquid 
D) vacillating 
A) fixed 
B) flexible 
C) liquid 
D) vacillating

Question 4

Under what conditions should people hire a professional financial planner?

Accepted Answer

A) When they need someone to improve or validate the plan they prepared themselves 
B) When they start receiving late payment penalties from their creditors 
C) When it is apparent their financial planning skills are limited 
D) When they run into complex tax or legal issues 
E) All of the above 
A) When they need someone to improve or validate the plan they prepared themselves 
B) When they start receiving late payment penalties from their creditors 
C) When it is apparent their financial planning skills are limited 
D) When they run into complex tax or legal issues 
E) All of the above

Question 5

The median net worth for families where the head of the household is less than 35 years old is?

Accepted Answer

A) $12,500 
B) $25,000 
C) $6,676 
D) $100,000 
A) $12,500 
B) $25,000 
C) $6,676 
D) $100,000

Question 6

What is their current net worth?

Accepted Answer

A) $21,000 
B) $39,000 
C) $18,000 
D) $(21,000) 
A) $21,000 
B) $39,000 
C) $18,000 
D) $(21,000)

Question 7

Which is following is not a source of income?

Accepted Answer

A) Tips 
B) Commissions 
C) Credit cards 
D) Bonuses 
A) Tips 
B) Commissions 
C) Credit cards 
D) Bonuses

Question 8

________ planners charge a fee that is reduced by the amount of the commissions they earn.

Accepted Answer

A) Fee-only 
B) Fee-and-commission 
C) Fee-offset 
D) Commission-based 
A) Fee-only 
B) Fee-and-commission 
C) Fee-offset 
D) Commission-based

Question 9

List the benefits a professional financial planner can offer.

Accepted Answer

A financial planner has the knowledge an

Question 10

From her annual salary of $72,000,Kierstan has $5,700 automatically deducted for insurance on an annual basis.Additionally,$9,000 is deducted each year in taxes.When preparing her personal income statement,what figure should Kierstan enter for her income?

Accepted Answer

A) $66,300 
B) $57,300 
C) $63,000 
D) $72,000 
A) $66,300 
B) $57,300 
C) $63,000 
D) $72,000

Question 11

To calculate your net worth,subtract your total debt from your total assets.

Accepted Answer

A) True 
 B)False

Question 12

Bradley went shopping today and used his American Express credit card to buy a new pullover sweater.He used his bank debit card to pay for a video game and bought some snack food with cash.Which of these purchases are difficult to track and monitor on his budget?

Accepted Answer

A) The pullover sweater is difficult to track because it costs more than what he budgeted for clothing this month. 
B) The video games are difficult to track because he did not add a budget category for electronics. 
C) The snacks are difficult to track because cash transactions don't leave a paper trail. 
D) Both A and B 
A) The pullover sweater is difficult to track because it costs more than what he budgeted for clothing this month. 
B) The video games are difficult to track because he did not add a budget category for electronics. 
C) The snacks are difficult to track because cash transactions don't leave a paper trail. 
D) Both A and B

Question 13

A statement that records where your money has come from and where it has gone over some period of time is called a(n)

Accepted Answer

A) income statement. 
B) balance sheet. 
C) statement of net worth. 
D) none of the above 
A) income statement. 
B) balance sheet. 
C) statement of net worth. 
D) none of the above

Question 14

Describe an income statement and its functions.

Accepted Answer

An income statement consists of three pa

Question 15

________ can be more than or less than the price you paid for a given asset,depending on what others are willing to pay for that asset today.

Accepted Answer

A) Net value 
B) Fair market value 
C) Intrinsic value 
D) Sentimental value 
A) Net value 
B) Fair market value 
C) Intrinsic value 
D) Sentimental value

Question 16

Assets that you purchase for the purpose of accumulating wealth to satisfy your financial goals are called

Accepted Answer

A) monetary assets. 
B) intangible assets. 
C) investment assets. 
D) all of the above. 
A) monetary assets. 
B) intangible assets. 
C) investment assets. 
D) all of the above.

Question 17

Prepare a list of questions to ask a prospective financial planner you are considering.

Accepted Answer

1.How long have you been a financial pla

Question 18

What would happen to your net worth if you sold a tangible asset you owned for $1,000 and used the money to pay off your credit card balance for $1,000?

Accepted Answer

A) Since your liabilities decreased,your net worth would increase by $1,000. 
B) Since your assets decreased,your net worth would decrease by $1,000. 
C) Your net worth would increase by $500. 
D) Your net worth would remain the same. 
A) Since your liabilities decreased,your net worth would increase by $1,000. 
B) Since your assets decreased,your net worth would decrease by $1,000. 
C) Your net worth would increase by $500. 
D) Your net worth would remain the same.

Question 19

The first section of a balance sheet represents your

Accepted Answer

A) net worth. 
B) financial goals. 
C) assets. 
D) liabilities. 
A) net worth. 
B) financial goals. 
C) assets. 
D) liabilities.

Question 20

Current liabilities are those that can typically be paid off in full within 12 months.

Accepted Answer

A) True 
 B)False

Which financial planning document should you use to measure your current financial condition?

Explain the relationship between the debt ratio and insolvency?

An expenditure over which you have control and are not obligated to make,and which may vary from month to month is called a ________ expenditure.

Under what conditions should people hire a professional financial planner?

The median net worth for families where the head of the household is less than 35 years old is?

What is their current net worth?

Which is following is not a source of income?

________ planners charge a fee that is reduced by the amount of the commissions they earn.

List the benefits a professional financial planner can offer.

From her annual salary of $72,000,Kierstan has $5,700 automatically deducted for insurance on an annual basis.Additionally,$9,000 is deducted each year in taxes.When preparing her personal income statement,what figure should Kierstan enter for her income?

To calculate your net worth,subtract your total debt from your total assets.

Bradley went shopping today and used his American Express credit card to buy a new pullover sweater.He used his bank debit card to pay for a video game and bought some snack food with cash.Which of these purchases are difficult to track and monitor on his budget?

A statement that records where your money has come from and where it has gone over some period of time is called a(n)

Describe an income statement and its functions.

________ can be more than or less than the price you paid for a given asset,depending on what others are willing to pay for that asset today.

Assets that you purchase for the purpose of accumulating wealth to satisfy your financial goals are called

Prepare a list of questions to ask a prospective financial planner you are considering.

What would happen to your net worth if you sold a tangible asset you owned for $1,000 and used the money to pay off your credit card balance for $1,000?

The first section of a balance sheet represents your

Current liabilities are those that can typically be paid off in full within 12 months.

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

Which financial planning document should you use to measure your current financial condition?

Explain the relationship between the debt ratio and insolvency?

An expenditure over which you have control and are not obligated to make,and which may vary from month to month is called a ________ expenditure.

Under what conditions should people hire a professional financial planner?

The median net worth for families where the head of the household is less than 35 years old is?

What is their current net worth?

Which is following is not a source of income?

________ planners charge a fee that is reduced by the amount of the commissions they earn.

List the benefits a professional financial planner can offer.

From her annual salary of $72,000,Kierstan has $5,700 automatically deducted for insurance on an annual basis.Additionally,$9,000 is deducted each year in taxes.When preparing her personal income statement,what figure should Kierstan enter for her income?

To calculate your net worth,subtract your total debt from your total assets.

Bradley went shopping today and used his American Express credit card to buy a new pullover sweater.He used his bank debit card to pay for a video game and bought some snack food with cash.Which of these purchases are difficult to track and monitor on his budget?

A statement that records where your money has come from and where it has gone over some period of time is called a(n)

Describe an income statement and its functions.

________ can be more than or less than the price you paid for a given asset,depending on what others are willing to pay for that asset today.

Assets that you purchase for the purpose of accumulating wealth to satisfy your financial goals are called

Prepare a list of questions to ask a prospective financial planner you are considering.

What would happen to your net worth if you sold a tangible asset you owned for $1,000 and used the money to pay off your credit card balance for $1,000?

The first section of a balance sheet represents your

Current liabilities are those that can typically be paid off in full within 12 months.

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