Question 1

A net worth statement can be used to monitor the changes in your wealth over time.

Accepted Answer

A) True 
 B)False

Question 2

Credit cards are

Accepted Answer

A) a good source of short term funds to be used in a period of negative cash flow. 
B) used to spend excessively by some because it avoids using up available cash. 
C) a great way to discipline yourself to delay gratification to the future. 
D) an interest free source of credit as long as the balanced is paid of every other month. 
A) a good source of short term funds to be used in a period of negative cash flow. 
B) used to spend excessively by some because it avoids using up available cash. 
C) a great way to discipline yourself to delay gratification to the future. 
D) an interest free source of credit as long as the balanced is paid of every other month.

Question 3

Property such as a person's home,car,and furniture is called

Accepted Answer

A) personal assets. 
B) household assets. 
C) major property assets. 
D) long-term assets. 
A) personal assets. 
B) household assets. 
C) major property assets. 
D) long-term assets.

Question 4

Balance sheet assets should be valued at

Accepted Answer

A) original purchase price. 
B) replacement value. 
C) insured value. 
D) fair market value. 
A) original purchase price. 
B) replacement value. 
C) insured value. 
D) fair market value.

Question 5

Salary or wages are the main source of income for most working people.

Accepted Answer

A) True 
 B)False

Question 6

Budgeting is the forecasting of future income,expenses,and savings.

Accepted Answer

A) True 
 B)False

Question 7

If you sell stock from your portfolio to pay off your car loan,your debt ratio of 0.5 will

Accepted Answer

A) improve (increase). 
B) improve (decrease). 
C) remain unchanged. 
D) decrease (unfavourably). 
A) improve (increase). 
B) improve (decrease). 
C) remain unchanged. 
D) decrease (unfavourably).

Question 8

The current financial position of an individual or family is best presented with the use of a

Accepted Answer

A) net worth statement. 
B) cash flow statement. 
C) balance sheet. 
D) bank statement. 
A) net worth statement. 
B) cash flow statement. 
C) balance sheet. 
D) bank statement.

Question 9

Paradis has total assets of $360 000,current assets of $35 000,current liabilities of $22 000,and total liabilities of $195 000.His debt-to-asset ratio is

Accepted Answer

A) 1.59. 
B) 0.63. 
C) 0.54. 
D) 1.85. 
A) 1.59. 
B) 0.63. 
C) 0.54. 
D) 1.85.

Question 10

Over time the balance sheet will show that your budgeting process is successful if

Accepted Answer

A) there is a constant positive cash flow. 
B) you have controlled all spending habits. 
C) your budget is continually accurate. 
D) your net worth increases each year. 
A) there is a constant positive cash flow. 
B) you have controlled all spending habits. 
C) your budget is continually accurate. 
D) your net worth increases each year.

Question 11

A low liquidity ratio means that

Accepted Answer

A) you have very few debts. 
B) you will not likely have trouble paying your monthly bills. 
C) you probably will have trouble paying your monthly bills. 
D) you have many liquid assets. 
A) you have very few debts. 
B) you will not likely have trouble paying your monthly bills. 
C) you probably will have trouble paying your monthly bills. 
D) you have many liquid assets.

Question 12

What tends to be the case for the retirement life stage?

Accepted Answer

A) Lower debt levels than in early-earning and mid-earning life stages 
B) Managing expenses for new hobbies becomes challenging. 
C) Managing RRSP investments becomes paramount. 
D) Increase in taxes due to income on retirement funds 
A) Lower debt levels than in early-earning and mid-earning life stages 
B) Managing expenses for new hobbies becomes challenging. 
C) Managing RRSP investments becomes paramount. 
D) Increase in taxes due to income on retirement funds

Question 13

Which of the following is not considered an asset for a family?

Accepted Answer

A) Cash in a chequing account 
B) A mortgaged home 
C) Access to a line of credit 
D) Furniture 
A) Cash in a chequing account 
B) A mortgaged home 
C) Access to a line of credit 
D) Furniture

Question 14

A liquidity ratio between 1 and 2 is ideal.

Accepted Answer

A) True 
 B)False

Question 15

Which one of the following is a liquid asset?

Accepted Answer

A) Money in a savings account 
B) A car 
C) Cash in an RRSP 
D) Stock held in an investment account 
A) Money in a savings account 
B) A car 
C) Cash in an RRSP 
D) Stock held in an investment account

Question 16

Net cash flows is defined as which of the following?

Accepted Answer

A) After tax income minus expenses and saving for an emergency fund,investments and major asset purchases 
B) After tax income minus expenses and saving for an emergency fund and investments 
C) After tax income minus expenses and saving for an emergency fund 
D) After tax income minus expenses 
A) After tax income minus expenses and saving for an emergency fund,investments and major asset purchases 
B) After tax income minus expenses and saving for an emergency fund and investments 
C) After tax income minus expenses and saving for an emergency fund 
D) After tax income minus expenses

Question 17

Getting financial help from family and friends should be your first options in case of emergencies.

Accepted Answer

A) True 
 B)False

Question 18

One advantage of budgeting several months in advance is that you will be warned of potential deficiencies and can determine how to cover them.

Accepted Answer

A) True 
 B)False

Question 19

Someone with a monthly income of $5000,$5000 in their checking account and monthly expenses of $5000 would have Liquidity Ratio of 2.

Accepted Answer

A) True 
 B)False

Question 20

A personal balance sheet summarizes

Accepted Answer

A) income,expenses and net worth. 
B) cash inflows,outflows and net worth. 
C) assets,net worth,and income. 
D) assets,liabilities,and net worth. 
A) income,expenses and net worth. 
B) cash inflows,outflows and net worth. 
C) assets,net worth,and income. 
D) assets,liabilities,and net worth.

A net worth statement can be used to monitor the changes in your wealth over time.

Credit cards are

Property such as a person's home,car,and furniture is called

Balance sheet assets should be valued at

Salary or wages are the main source of income for most working people.

Budgeting is the forecasting of future income,expenses,and savings.

If you sell stock from your portfolio to pay off your car loan,your debt ratio of 0.5 will

The current financial position of an individual or family is best presented with the use of a

Paradis has total assets of $360 000,current assets of $35 000,current liabilities of $22 000,and total liabilities of $195 000.His debt-to-asset ratio is

Over time the balance sheet will show that your budgeting process is successful if

A low liquidity ratio means that

What tends to be the case for the retirement life stage?

Which of the following is not considered an asset for a family?

A liquidity ratio between 1 and 2 is ideal.

Which one of the following is a liquid asset?

Net cash flows is defined as which of the following?

Getting financial help from family and friends should be your first options in case of emergencies.

One advantage of budgeting several months in advance is that you will be warned of potential deficiencies and can determine how to cover them.

Someone with a monthly income of $5000,$5000 in their checking account and monthly expenses of $5000 would have Liquidity Ratio of 2.

A personal balance sheet summarizes

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Using Tax Concepts for Planning

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing,Managing and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

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Exam 1: Tools for Financial Planning - Planning with Personal Financial Statements

A net worth statement can be used to monitor the changes in your wealth over time.

Credit cards are

Property such as a person's home,car,and furniture is called

Balance sheet assets should be valued at

Salary or wages are the main source of income for most working people.

Budgeting is the forecasting of future income,expenses,and savings.

If you sell stock from your portfolio to pay off your car loan,your debt ratio of 0.5 will

The current financial position of an individual or family is best presented with the use of a

Paradis has total assets of $360 000,current assets of $35 000,current liabilities of $22 000,and total liabilities of $195 000.His debt-to-asset ratio is

Over time the balance sheet will show that your budgeting process is successful if

A low liquidity ratio means that

What tends to be the case for the retirement life stage?

Which of the following is not considered an asset for a family?

A liquidity ratio between 1 and 2 is ideal.

Which one of the following is a liquid asset?

Net cash flows is defined as which of the following?

Getting financial help from family and friends should be your first options in case of emergencies.

One advantage of budgeting several months in advance is that you will be warned of potential deficiencies and can determine how to cover them.

Someone with a monthly income of $5000,$5000 in their checking account and monthly expenses of $5000 would have Liquidity Ratio of 2.

A personal balance sheet summarizes

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Using Tax Concepts for Planning

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing,Managing and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Filters