Question 1

Indicate whether the following are liquid assets or household assets by placing an L or H beside them.
________ Car
________ Home
________ Checking account
________ Furniture
________ Cash
________ Savings account

Accepted Answer

The answer of Indicate whether the following are liquid assets...

Question 2

Which of the following would increase your liquid assets?

Accepted Answer

A)  Buying a new car 
B)  Making regular deposits to a savings account at your bank 
C)  Buying rental property 
D)  Putting more of your salary in a retirement account

Question 3

If Jo Ann has $4,000 in liquid assets and $1,000 in current liabilities,her liquidity ratio is

Accepted Answer

A)  0.25. 
B)  4.0. 
C)  1,000. 
D)  4,000.

Question 4

If your cash outflows are $600 and your cash inflows are $1,000,you can increase your net worth by

Accepted Answer

A)  $1,000. 
B)  $600. 
C)  $1,600. 
D)  $400.

Question 5

Use the following two columns of items to answer the matching questions below:
-net cash flows

Accepted Answer

A) a summary of assets, liabilities and net worth 
B) the difference between cash inflows and outflows 
C) items owned by a household such as a home or car 
D) a financial statement that measures cash inflows and outflows

Question 6

Cash flow can be increased by all of the following except

Accepted Answer

A)  increasing credit card purchases. 
B)  working overtime. 
C)  selling stock. 
D)  getting a second job.

Question 7

A personal balance sheet summarizes

Accepted Answer

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

Question 8

Debts that are to be paid off within a year are called

Accepted Answer

A)  intermediate-term liabilities. 
B)  one-year liabilities. 
C)  current liabilities. 
D)  insignificant debts.

Question 9

In budgeting,it is useful to compare ________ with the budgeted amounts to determine the accuracy or error of the budget and adjust it as necessary.

Accepted Answer

A)  actual inflows 
B)  actual outflows 
C)  both actual inflows and outflows 
D)  current assets

Question 10

List three components of your personal balance sheet and two components of your income statement.

Accepted Answer

The answer of List three components of your personal balance...

Question 11

If you do not budget for unexpected expenses in a given month,you will likely experience a(n)

Accepted Answer

A)  cash shortage. 
B)  cash surplus. 
C)  increase in assets. 
D)  decrease in liabilities.

Question 12

Jim has $1,000 income from his job and $200 stock dividend income this month.This month Jim has rent and utilities of $300 and he spent $300 on groceries and $200 on clothing.What is his cash inflow this month?

Accepted Answer

A)  $1,200 
B)  $400 
C)  $600 
D)  $500

Question 13

A document that shows your cash inflows and cash outflows is called a(n)________.

Accepted Answer

The answer of A document that shows your cash inflows...

Question 14

Balance sheet assets should be valued at

Accepted Answer

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

Question 15

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

Accepted Answer

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

Question 16

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

Accepted Answer

A)  Cash in a checking account 
B)  A mortgaged home 
C)  A leased car 
D)  Furniture

Question 17

Which factor does not affect a household's cash inflows?

Accepted Answer

A)  Monthly spending on non-essentials 
B)  Stage in career 
C)  Type or level of job 
D)  Number of family members employed

Question 18

Lucky Louie just inherited $50,000 from his great aunt,has $1,500 in his checking account,owns a car with a value of $8,000,and has $20,000 in his 401(k)at work.Louie owes $6,000 on his car,$12,000 on school loans and $3,000 on his credit card.What is Louie's net worth?

Accepted Answer

A)  $58,500 
B)  $58,000 
C)  $38,500 
D)  He has no net worth since he does not own a house.

Question 19

Which of the following is not a cash outflow?

Accepted Answer

A)  Salary 
B)  Rent 
C)  Telephone bill 
D)  Car payment

Question 20

Long-term liabilities are debts that will be paid at least three years into the future.

Accepted Answer

A) True 
 B)False

Exam 2: Planning With Personal Financial Statements

Indicate whether the following are liquid assets or household assets by placing an L or H beside them. Car Home Checking account Furniture Cash Savings account

Which of the following would increase your liquid assets?

If Jo Ann has $4,000 in liquid assets and $1,000 in current liabilities,her liquidity ratio is

If your cash outflows are $600 and your cash inflows are $1,000,you can increase your net worth by

Use the following two columns of items to answer the matching questions below: -net cash flows

Cash flow can be increased by all of the following except

A personal balance sheet summarizes

Debts that are to be paid off within a year are called

In budgeting,it is useful to compare ________ with the budgeted amounts to determine the accuracy or error of the budget and adjust it as necessary.

List three components of your personal balance sheet and two components of your income statement.

If you do not budget for unexpected expenses in a given month,you will likely experience a(n)

Jim has $1,000 income from his job and $200 stock dividend income this month.This month Jim has rent and utilities of $300 and he spent $300 on groceries and $200 on clothing.What is his cash inflow this month?

A document that shows your cash inflows and cash outflows is called a(n)________.

Balance sheet assets should be valued at

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

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

Which factor does not affect a household's cash inflows?

Lucky Louie just inherited $50,000 from his great aunt,has $1,500 in his checking account,owns a car with a value of $8,000,and has $20,000 in his 401(k) at work.Louie owes $6,000 on his car,$12,000 on school loans and $3,000 on his credit card.What is Louie's net worth?

Which of the following is not a cash outflow?

Long-term liabilities are debts that will be paid at least three years into the future.

Exam 2: Planning With Personal Financial Statements

Indicate whether the following are liquid assets or household assets by placing an L or H beside them. ________ Car ________ Home ________ Checking account ________ Furniture ________ Cash ________ Savings account

Which of the following would increase your liquid assets?

If Jo Ann has $4,000 in liquid assets and $1,000 in current liabilities,her liquidity ratio is

If your cash outflows are $600 and your cash inflows are $1,000,you can increase your net worth by

Use the following two columns of items to answer the matching questions below: -net cash flows

Cash flow can be increased by all of the following except

A personal balance sheet summarizes

Debts that are to be paid off within a year are called

In budgeting,it is useful to compare ________ with the budgeted amounts to determine the accuracy or error of the budget and adjust it as necessary.

List three components of your personal balance sheet and two components of your income statement.

If you do not budget for unexpected expenses in a given month,you will likely experience a(n)

Jim has $1,000 income from his job and $200 stock dividend income this month.This month Jim has rent and utilities of $300 and he spent $300 on groceries and $200 on clothing.What is his cash inflow this month?

A document that shows your cash inflows and cash outflows is called a(n)________.

Balance sheet assets should be valued at

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

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

Which factor does not affect a household's cash inflows?

Lucky Louie just inherited $50,000 from his great aunt,has $1,500 in his checking account,owns a car with a value of $8,000,and has $20,000 in his 401(k) at work.Louie owes $6,000 on his car,$12,000 on school loans and $3,000 on his credit card.What is Louie's net worth?

Which of the following is not a cash outflow?

Long-term liabilities are debts that will be paid at least three years into the future.

Indicate whether the following are liquid assets or household assets by placing an L or H beside them. Car Home Checking account Furniture Cash Savings account