Question 1

An estimate of your anticipated after-tax income available for living expenses is commonly called take-home pay.

Accepted Answer

A) True 
 B)False

Question 2

Planning and budgeting requires

Accepted Answer

A) control. 
B) financial restraint. 
C) discipline. 
D) all of the above. 
A) control. 
B) financial restraint. 
C) discipline. 
D) all of the above.

Question 3

Which type of expenditure would probably be the hardest for an individual to track?

Accepted Answer

A) Credit card 
B) Cash 
C) Checks written 
D) Automatic payments 
E) Direct deposits 
A) Credit card 
B) Cash 
C) Checks written 
D) Automatic payments 
E) Direct deposits

Question 4

The house that you are leasing from a landlord is an example of a tangible asset that you would list on your balance sheet.

Accepted Answer

A) True 
 B)False

Question 5

What questions do financial ratios help answer?

Accepted Answer

By calculating your current ratio you ca

Question 6

An expenditure over which you have no control,are obligated to make,and is generally at a constant level each month is called a ________ expenditure.

Accepted Answer

A) fixed 
B) flexible 
C) stationary 
D) discretionary 
E) none of the above 
A) fixed 
B) flexible 
C) stationary 
D) discretionary 
E) none of the above

Question 7

Which of the following is the best type of record-keeping system to use in maintaining financial records?

Accepted Answer

A) Manual method with pencil and notebook 
B) Computer software 
C) Apps 
D) All of the above 
A) Manual method with pencil and notebook 
B) Computer software 
C) Apps 
D) All of the above

Question 8

Your ________ is found by dividing total debt or liabilities by total assets.

Accepted Answer

A) debt ratio 
B) current ratio 
C) net worth 
D) asset ratio 
A) debt ratio 
B) current ratio 
C) net worth 
D) asset ratio

Question 9

According to the Keown book,Mint and Level Money are two of the best smartphone apps for tracking your spending and setting up a budget.

Accepted Answer

A) True 
 B)False

Question 10

What is their month's living expenses covered ratio?

Accepted Answer

A) 2 months 
B) 2.44 months 
C) 1.69 months 
D) 0.5 months 
E) Not enough information to answer this question 
A) 2 months 
B) 2.44 months 
C) 1.69 months 
D) 0.5 months 
E) Not enough information to answer this question

Question 11

Which of the following financial documents would you to use to create a financial plan?

Accepted Answer

A) Balance sheet 
B) Income statement 
C) Budget 
D) Cash budget 
E) All of the above 
A) Balance sheet 
B) Income statement 
C) Budget 
D) Cash budget 
E) All of the above

Question 12

According to the Keown book,what are the three primary reasons for maintaining financial records?

Accepted Answer

First,without adequate records,it is ext

Question 13

What is their month's living expenses covered ratio?

Accepted Answer

A) 2 months 
B) 1.23 months 
C) 1.75 months 
D) Not enough information to answer this question 
A) 2 months 
B) 1.23 months 
C) 1.75 months 
D) Not enough information to answer this question

Question 14

Suppose that you wanted to calculate a financial ratio to measure your liquidity.You would most likely use the ________ ratio.

Accepted Answer

A) debt 
B) long-term debt coverage 
C) savings 
D) current 
E) none of the above 
A) debt 
B) long-term debt coverage 
C) savings 
D) current 
E) none of the above

Question 15

What is their current savings ratio?

Accepted Answer

A) 10.3 percent 
B) negative 10.3 percent 
C) zero 
D) None of the above 
A) 10.3 percent 
B) negative 10.3 percent 
C) zero 
D) None of the above

Question 16

A personal income statement is prepared

Accepted Answer

A) on an accrual basis. 
B) on a cash basis. 
C) based on actual cash flows. 
D) Both B and C. 
A) on an accrual basis. 
B) on a cash basis. 
C) based on actual cash flows. 
D) Both B and C.

Question 17

Suppose that Jacob's assets include a motorcycle worth $12,000 and a checking account with a $3,000 balance,while his liabilities include a credit card balance of $4,000 and a motorcycle loan balance of $7,000.What is his net worth?

Accepted Answer

A) $4,000 
B) $5,000 
C) $7,000 
D) $12,000 
A) $4,000 
B) $5,000 
C) $7,000 
D) $12,000

Question 18

Which of the following is not a type of Long-Term Debt?

Accepted Answer

A) Car loans 
B) Credit card debt 
C) Student Loans 
D) Home Loans 
A) Car loans 
B) Credit card debt 
C) Student Loans 
D) Home Loans

Question 19

Your ________ include cash,checking and savings account balances,and money market funds.

Accepted Answer

A) monetary assets 
B) tangible assets 
C) physical assets 
D) investment assets 
A) monetary assets 
B) tangible assets 
C) physical assets 
D) investment assets

Question 20

Suppose that you were trying to determine how much income was available for future monetary needs as well as for investments.Which of the following ratios would you most likely use?

Accepted Answer

A) Current ratio 
B) Debt ratio 
C) Savings ratio 
D) Total asset turnover 
E) None of the above 
A) Current ratio 
B) Debt ratio 
C) Savings ratio 
D) Total asset turnover 
E) None of the above

An estimate of your anticipated after-tax income available for living expenses is commonly called take-home pay.

Planning and budgeting requires

Which type of expenditure would probably be the hardest for an individual to track?

The house that you are leasing from a landlord is an example of a tangible asset that you would list on your balance sheet.

What questions do financial ratios help answer?

An expenditure over which you have no control,are obligated to make,and is generally at a constant level each month is called a ________ expenditure.

Which of the following is the best type of record-keeping system to use in maintaining financial records?

Your ________ is found by dividing total debt or liabilities by total assets.

According to the Keown book,Mint and Level Money are two of the best smartphone apps for tracking your spending and setting up a budget.

What is their month's living expenses covered ratio?

Which of the following financial documents would you to use to create a financial plan?

According to the Keown book,what are the three primary reasons for maintaining financial records?

What is their month's living expenses covered ratio?

Suppose that you wanted to calculate a financial ratio to measure your liquidity.You would most likely use the ________ ratio.

What is their current savings ratio?

A personal income statement is prepared

Suppose that Jacob's assets include a motorcycle worth $12,000 and a checking account with a $3,000 balance,while his liabilities include a credit card balance of $4,000 and a motorcycle loan balance of $7,000.What is his net worth?

Which of the following is not a type of Long-Term Debt?

Your ________ include cash,checking and savings account balances,and money market funds.

Suppose that you were trying to determine how much income was available for future monetary needs as well as for investments.Which of the following ratios would you most likely use?

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

An estimate of your anticipated after-tax income available for living expenses is commonly called take-home pay.

Planning and budgeting requires

Which type of expenditure would probably be the hardest for an individual to track?

The house that you are leasing from a landlord is an example of a tangible asset that you would list on your balance sheet.

What questions do financial ratios help answer?

An expenditure over which you have no control,are obligated to make,and is generally at a constant level each month is called a ________ expenditure.

Which of the following is the best type of record-keeping system to use in maintaining financial records?

Your ________ is found by dividing total debt or liabilities by total assets.

According to the Keown book,Mint and Level Money are two of the best smartphone apps for tracking your spending and setting up a budget.

What is their month's living expenses covered ratio?

Which of the following financial documents would you to use to create a financial plan?

According to the Keown book,what are the three primary reasons for maintaining financial records?

What is their month's living expenses covered ratio?

Suppose that you wanted to calculate a financial ratio to measure your liquidity.You would most likely use the ________ ratio.

What is their current savings ratio?

A personal income statement is prepared

Suppose that Jacob's assets include a motorcycle worth $12,000 and a checking account with a $3,000 balance,while his liabilities include a credit card balance of $4,000 and a motorcycle loan balance of $7,000.What is his net worth?

Which of the following is not a type of Long-Term Debt?

Your ________ include cash,checking and savings account balances,and money market funds.

Suppose that you were trying to determine how much income was available for future monetary needs as well as for investments.Which of the following ratios would you most likely use?

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