Question 1

Which of the following are not typically found on a balance sheet?

Accepted Answer

A) Monetary assets 
B) Mortgage interest payments 
C) Home's current market value 
D) Interest earned on a CD 
E) Both B and D 
A) Monetary assets 
B) Mortgage interest payments 
C) Home's current market value 
D) Interest earned on a CD 
E) Both B and D

Question 2

The experts say that,stereotypically,a fee-only financial planner is a better option than one who earns commissions on what he or she sells you.Why is this sometimes true?

Accepted Answer

Because of the agency relationship and s

Question 3

An emergency fund,or rainy-day fund,is comprised of liquid assets sufficient to cover 3.5 years of expenditures.

Accepted Answer

A) True 
 B)False

Question 4

According to the Keown book,the most popular personal financial management program for the PC is

Accepted Answer

A) Intuit's Quicken. 
B) MoneyGuidePro. 
C) Financial Peace. 
D) Crown Financial. 
A) Intuit's Quicken. 
B) MoneyGuidePro. 
C) Financial Peace. 
D) Crown Financial.

Question 5

Practical uses of an income statement include

Accepted Answer

A) determining whether you are spending more than you earn. 
B) spotting problem areas of overspending. 
C) determining if money is available for saving or investing. 
D) knowing where your money is going. 
E) all of the above 
A) determining whether you are spending more than you earn. 
B) spotting problem areas of overspending. 
C) determining if money is available for saving or investing. 
D) knowing where your money is going. 
E) all of the above

Question 6

The purpose of using financial ratios is to

Accepted Answer

A) save space on your financial statements. 
B) share your financial figures with your advisors. 
C) help analyze your raw data to compare how well you are doing. 
D) better understand how you are managing your financial resources. 
E) both C and D. 
A) save space on your financial statements. 
B) share your financial figures with your advisors. 
C) help analyze your raw data to compare how well you are doing. 
D) better understand how you are managing your financial resources. 
E) both C and D.

Question 7

From her annual salary of $60,000,Claudia has $4,500 automatically deducted for insurance on an annual basis.Additionally,$7,500 is deducted each year in taxes.When preparing her personal income statement,what figure should Claudia enter for her income?

Accepted Answer

A) $55,500 
B) $48,000 
C) $52,500 
D) $60,000 
A) $55,500 
B) $48,000 
C) $52,500 
D) $60,000

Question 8

An expenditure that you can control over time and that you can manage is a(n)

Accepted Answer

A) variable expenditure. 
B) fixed expenditure. 
C) constant expenditure. 
D) short-term expenditure. 
E) adjustable expenditure. 
A) variable expenditure. 
B) fixed expenditure. 
C) constant expenditure. 
D) short-term expenditure. 
E) adjustable expenditure.

Question 9

George and Betty ask you for financial advice.What would you tell them to do?

Accepted Answer

A) They should hire a Certified Financial Planner to assist them. 
B) Nothing.With their income they are in good shape financially. 
C) They need to live within their means. 
D) Both A and C would be good advice for them. 
A) They should hire a Certified Financial Planner to assist them. 
B) Nothing.With their income they are in good shape financially. 
C) They need to live within their means. 
D) Both A and C would be good advice for them.

Question 10

Which of the following would you calculate if you were concerned about your financial resources with regards to unplanned money emergencies?

Accepted Answer

A) Liability ratio 
B) Debt ratio 
C) Long-term debt coverage ratio 
D) Current ratio 
E) None of the above 
A) Liability ratio 
B) Debt ratio 
C) Long-term debt coverage ratio 
D) Current ratio 
E) None of the above

Question 11

When including an asset such as a car on your balance sheet

Accepted Answer

A) list its current value as indicated in a blue book or site like www.edmunds.com. 
B) list the original purchase price of the vehicle. 
C) list the amount it would cost to purchase a new model of this vehicle. 
D) none of the above. 
A) list its current value as indicated in a blue book or site like www.edmunds.com. 
B) list the original purchase price of the vehicle. 
C) list the amount it would cost to purchase a new model of this vehicle. 
D) none of the above.

Question 12

Below are several people and their current ratios.If they were to lose their jobs today,which one would probably experience financial stress and pressures the quickest?

Accepted Answer

A) Elmo has a current ratio of 0.5 times. 
B) Andy has a current ratio of 2.1 times. 
C) Dee has a current ratio of 1 time. 
D) There is not enough information to answer this question. 
A) Elmo has a current ratio of 0.5 times. 
B) Andy has a current ratio of 2.1 times. 
C) Dee has a current ratio of 1 time. 
D) There is not enough information to answer this question.

Question 13

Before you can hope to achieve your financial goals,you will need to first measure your current financial health and develop a plan and a budget.

Accepted Answer

A) True 
 B)False

Question 14

Henry currently has $1,250 in monetary assets and also has $1,250 in current liabilities.What is his current ratio?

Accepted Answer

A) 1 time 
B) 100 percent 
C) 1 percent 
D) 0 
A) 1 time 
B) 100 percent 
C) 1 percent 
D) 0

Question 15

When measuring your current financial health it is important to create

Accepted Answer

A) positive net worth. 
B) a personal balance sheet. 
C) an income statement. 
D) positive net income. 
E) both B and C. 
A) positive net worth. 
B) a personal balance sheet. 
C) an income statement. 
D) positive net income. 
E) both B and C.

Question 16

The interest charge on your credit card statement should be listed on your personal income statement as a variable expense.

Accepted Answer

A) True 
 B)False

Question 17

Liabilities are best described as

Accepted Answer

A) monetary items of value that you own. 
B) financial debts and obligations that you owe. 
C) your net worth. 
D) assets that depreciate over time. 
E) intangible obligations. 
A) monetary items of value that you own. 
B) financial debts and obligations that you owe. 
C) your net worth. 
D) assets that depreciate over time. 
E) intangible obligations.

Question 18

The current ratio is a measure of liquidity that reflects

Accepted Answer

A) how many current assets you own free and clear. 
B) your debt payments for the current period. 
C) how many times you can pay off your current liabilities by using your liquid assets. 
D) the portion of your total liabilities that are considered current liabilities. 
A) how many current assets you own free and clear. 
B) your debt payments for the current period. 
C) how many times you can pay off your current liabilities by using your liquid assets. 
D) the portion of your total liabilities that are considered current liabilities.

Question 19

In some cases insolvency can lead to bankruptcy.

Accepted Answer

A) True 
 B)False

Question 20

Net worth or equity is measured by adding the assets you own and subtracting

Accepted Answer

A) Current Debt. 
B) Long - Term Debt. 
C) Total Debt. 
D) Other Assets. 
A) Current Debt. 
B) Long - Term Debt. 
C) Total Debt. 
D) Other Assets.

Which of the following are not typically found on a balance sheet?

The experts say that,stereotypically,a fee-only financial planner is a better option than one who earns commissions on what he or she sells you.Why is this sometimes true?

An emergency fund,or rainy-day fund,is comprised of liquid assets sufficient to cover 3.5 years of expenditures.

According to the Keown book,the most popular personal financial management program for the PC is

Practical uses of an income statement include

The purpose of using financial ratios is to

From her annual salary of $60,000,Claudia has $4,500 automatically deducted for insurance on an annual basis.Additionally,$7,500 is deducted each year in taxes.When preparing her personal income statement,what figure should Claudia enter for her income?

An expenditure that you can control over time and that you can manage is a(n)

George and Betty ask you for financial advice.What would you tell them to do?

Which of the following would you calculate if you were concerned about your financial resources with regards to unplanned money emergencies?

When including an asset such as a car on your balance sheet

Below are several people and their current ratios.If they were to lose their jobs today,which one would probably experience financial stress and pressures the quickest?

Before you can hope to achieve your financial goals,you will need to first measure your current financial health and develop a plan and a budget.

Henry currently has $1,250 in monetary assets and also has $1,250 in current liabilities.What is his current ratio?

When measuring your current financial health it is important to create

The interest charge on your credit card statement should be listed on your personal income statement as a variable expense.

Liabilities are best described as

The current ratio is a measure of liquidity that reflects

In some cases insolvency can lead to bankruptcy.

Net worth or equity is measured by adding the assets you own and subtracting

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 of the following are not typically found on a balance sheet?

The experts say that,stereotypically,a fee-only financial planner is a better option than one who earns commissions on what he or she sells you.Why is this sometimes true?

An emergency fund,or rainy-day fund,is comprised of liquid assets sufficient to cover 3.5 years of expenditures.

According to the Keown book,the most popular personal financial management program for the PC is

Practical uses of an income statement include

The purpose of using financial ratios is to

From her annual salary of $60,000,Claudia has $4,500 automatically deducted for insurance on an annual basis.Additionally,$7,500 is deducted each year in taxes.When preparing her personal income statement,what figure should Claudia enter for her income?

An expenditure that you can control over time and that you can manage is a(n)

George and Betty ask you for financial advice.What would you tell them to do?

Which of the following would you calculate if you were concerned about your financial resources with regards to unplanned money emergencies?

When including an asset such as a car on your balance sheet

Below are several people and their current ratios.If they were to lose their jobs today,which one would probably experience financial stress and pressures the quickest?

Before you can hope to achieve your financial goals,you will need to first measure your current financial health and develop a plan and a budget.

Henry currently has $1,250 in monetary assets and also has $1,250 in current liabilities.What is his current ratio?

When measuring your current financial health it is important to create

The interest charge on your credit card statement should be listed on your personal income statement as a variable expense.

Liabilities are best described as

The current ratio is a measure of liquidity that reflects

In some cases insolvency can lead to bankruptcy.

Net worth or equity is measured by adding the assets you own and subtracting

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