Question 1

Describe the three sections included in a personal balance sheet.

Accepted Answer

A personal balance sheet consists of thr

Question 2

The median net worth of a family whose head of household has a college education is ________ times higher than one whose head of household does not have a high school diploma.

Accepted Answer

A) 20 
B) 10 
C) 8 
D) 12 
A) 20 
B) 10 
C) 8 
D) 12

Question 3

Your financial situation is insolvent when

Accepted Answer

A) your expenses exceed your income. 
B) your assets are less than your liabilities. 
C) your net worth is positive. 
D) your debt ratio is too high. 
A) your expenses exceed your income. 
B) your assets are less than your liabilities. 
C) your net worth is positive. 
D) your debt ratio is too high.

Question 4

A vehicle leased in your name is an example of a tangible asset that you would list on your balance sheet.

Accepted Answer

A) True 
 B)False

Question 5

Items on the balance sheet that represent amounts owed to others are termed

Accepted Answer

A) assets. 
B) liabilities. 
C) revenues. 
D) expenses. 
E) none of the above. 
A) assets. 
B) liabilities. 
C) revenues. 
D) expenses. 
E) none of the above.

Question 6

How can an income statement help you stay solvent?

Accepted Answer

An income statement can help you stay so

Question 7

As long as a financial planner is certified you need not worry about his ability to provide you with the correct financial plan for your situation.

Accepted Answer

A) True 
 B)False

Question 8

Which questions do financial ratios help you answer?

Accepted Answer

A) Do I have adequate liquidity to meet emergencies? 
B) Do I have the ability to meet my debt obligations? 
C) Am I saving as much as I think I am? 
D) All of the above 
E) A and B 
A) Do I have adequate liquidity to meet emergencies? 
B) Do I have the ability to meet my debt obligations? 
C) Am I saving as much as I think I am? 
D) All of the above 
E) A and B

Question 9

Hector's month's living expenses covered ratio is 0.25 months.He just broke his leg and will not be able to work for six weeks.Without a paycheck for six weeks,what will Hector most likely experience?

Accepted Answer

A) He may have to liquidate some of his tangible or investment assets to keep current on his monthly bills. 
B) He doesn't have to worry because he has plenty of money in his savings accounts. 
C) He may have to borrow some money to keep current on his monthly bills 
D) There is not enough information to answer this question. 
E) Both A and C are realistic possibilities. 
A) He may have to liquidate some of his tangible or investment assets to keep current on his monthly bills. 
B) He doesn't have to worry because he has plenty of money in his savings accounts. 
C) He may have to borrow some money to keep current on his monthly bills 
D) There is not enough information to answer this question. 
E) Both A and C are realistic possibilities.

Question 10

Commission-only planners charge fees and collect commissions on products they recommend.

Accepted Answer

A) True 
 B)False

Question 11

Suppose that David's only assets are an automobile worth $10,000 and a checking account with a $5,000 balance.His only liabilities are a student loan balance of $12,000 and a balance of $9,000 on his car loan.What is his net worth?

Accepted Answer

A) $21,000 
B) $15,000 
C) $6,000 
D) Doug is currently insolvent with $6,000 negative net worth. 
E) None of the above statements are correct. 
A) $21,000 
B) $15,000 
C) $6,000 
D) Doug is currently insolvent with $6,000 negative net worth. 
E) None of the above statements are correct.

Question 12

If the people below,with their respective current ratios,were to lose their jobs today,which one would have more time and more choices until he or she found another job?

Accepted Answer

A) Christy has a current ratio of 0.85 times. 
B) Rick has a current ratio of 2.5 times. 
C) Andrew has a current ratio of 1 time. 
D) There is not enough information to answer this question. 
A) Christy has a current ratio of 0.85 times. 
B) Rick has a current ratio of 2.5 times. 
C) Andrew has a current ratio of 1 time. 
D) There is not enough information to answer this question.

Question 13

What is their debt ratio?

Accepted Answer

A) 123 percent 
B) 3 times 
C) 1.23 times 
D) 0.54 percent 
A) 123 percent 
B) 3 times 
C) 1.23 times 
D) 0.54 percent

Question 14

Alysha has $500 in monetary assets and $5,000 in current liabilities.What is her current ratio?

Accepted Answer

A) 0.100 percent 
B) 0.10 times 
C) 100 percent 
D) 10 times 
A) 0.100 percent 
B) 0.10 times 
C) 100 percent 
D) 10 times

Question 15

Which of the following might be found on an income statement?

Accepted Answer

A) Wages and salaries 
B) Interest and dividends 
C) Income taxes paid 
D) Payroll taxes paid 
E) All of the above 
A) Wages and salaries 
B) Interest and dividends 
C) Income taxes paid 
D) Payroll taxes paid 
E) All of the above

Question 16

The common thread among investment assets is that

Accepted Answer

A) they are purchased for the purpose of generating wealth. 
B) they are purchased for one's personal use,like a vehicle or residence. 
C) they provide the liquidity needed in case of an emergency. 
D) they must be easily turned into cash with little or no loss in value. 
A) they are purchased for the purpose of generating wealth. 
B) they are purchased for one's personal use,like a vehicle or residence. 
C) they provide the liquidity needed in case of an emergency. 
D) they must be easily turned into cash with little or no loss in value.

Question 17

Explain the steps in developing a cash budget.

Accepted Answer

First,determine your anticipated income

Question 18

Does your use of debt affect your net worth?

Accepted Answer

Yes,although this depends on how you use

Question 19

A financial ratio by itself is of little value.To what can you compare your financial ratios to make them valuable financial planning tools?

Accepted Answer

Financial ratios can be compared to hist

Question 20

How would an income statement help you create a financial plan?

Accepted Answer

A) Spot potential areas of gambling 
B) Determines whether you are earning more than you spend 
C) Determines your net worth 
D) Allows you to track future income 
A) Spot potential areas of gambling 
B) Determines whether you are earning more than you spend 
C) Determines your net worth 
D) Allows you to track future income

Describe the three sections included in a personal balance sheet.

The median net worth of a family whose head of household has a college education is ________ times higher than one whose head of household does not have a high school diploma.

Your financial situation is insolvent when

A vehicle leased in your name is an example of a tangible asset that you would list on your balance sheet.

Items on the balance sheet that represent amounts owed to others are termed

How can an income statement help you stay solvent?

As long as a financial planner is certified you need not worry about his ability to provide you with the correct financial plan for your situation.

Which questions do financial ratios help you answer?

Hector's month's living expenses covered ratio is 0.25 months.He just broke his leg and will not be able to work for six weeks.Without a paycheck for six weeks,what will Hector most likely experience?

Commission-only planners charge fees and collect commissions on products they recommend.

Suppose that David's only assets are an automobile worth $10,000 and a checking account with a $5,000 balance.His only liabilities are a student loan balance of $12,000 and a balance of $9,000 on his car loan.What is his net worth?

If the people below,with their respective current ratios,were to lose their jobs today,which one would have more time and more choices until he or she found another job?

What is their debt ratio?

Alysha has $500 in monetary assets and $5,000 in current liabilities.What is her current ratio?

Which of the following might be found on an income statement?

The common thread among investment assets is that

Explain the steps in developing a cash budget.

Does your use of debt affect your net worth?

A financial ratio by itself is of little value.To what can you compare your financial ratios to make them valuable financial planning tools?

How would an income statement help you create a financial plan?

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

Describe the three sections included in a personal balance sheet.

The median net worth of a family whose head of household has a college education is ________ times higher than one whose head of household does not have a high school diploma.

Your financial situation is insolvent when

A vehicle leased in your name is an example of a tangible asset that you would list on your balance sheet.

Items on the balance sheet that represent amounts owed to others are termed

How can an income statement help you stay solvent?

As long as a financial planner is certified you need not worry about his ability to provide you with the correct financial plan for your situation.

Which questions do financial ratios help you answer?

Hector's month's living expenses covered ratio is 0.25 months.He just broke his leg and will not be able to work for six weeks.Without a paycheck for six weeks,what will Hector most likely experience?

Commission-only planners charge fees and collect commissions on products they recommend.

Suppose that David's only assets are an automobile worth $10,000 and a checking account with a $5,000 balance.His only liabilities are a student loan balance of $12,000 and a balance of $9,000 on his car loan.What is his net worth?

If the people below,with their respective current ratios,were to lose their jobs today,which one would have more time and more choices until he or she found another job?

What is their debt ratio?

Alysha has $500 in monetary assets and $5,000 in current liabilities.What is her current ratio?

Which of the following might be found on an income statement?

The common thread among investment assets is that

Explain the steps in developing a cash budget.

Does your use of debt affect your net worth?

A financial ratio by itself is of little value.To what can you compare your financial ratios to make them valuable financial planning tools?

How would an income statement help you create a financial plan?

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