Question 1

When estimating income for the income and expense statement,you should

Accepted Answer

A)  use gross income. 
B)  include expected pay increases. 
C)  adjust for inflation. 
D)  use net income. 
E)  none of these 
A)  use gross income. 
B)  include expected pay increases. 
C)  adjust for inflation. 
D)  use net income. 
E)  none of these A

Question 2

A savings ratio expresses the

Accepted Answer

A)  percentage of gross income saved. 
B)  ability to cover immediate debt when there is an interruption in income. 
C)  percentage of after-tax income saved. 
D)  percentage of tax-deferred income earned annually. 
E)  none of the above. 
A)  percentage of gross income saved. 
B)  ability to cover immediate debt when there is an interruption in income. 
C)  percentage of after-tax income saved. 
D)  percentage of tax-deferred income earned annually. 
E)  none of the above. C

Question 3

The income statement includes information on your latest paycheck.

Accepted Answer

A) True 
 B)False  False

Question 4

Elena purchased a stamp collection for $5,000 thirty years ago.If it appreciated 8% annually,what is it worth today?

Accepted Answer

A)  $ 17,000 
B)  $ 36,400 
C)  $ 50,313 
D)  $123,023 
E)  $150,000 
A)  $ 17,000 
B)  $ 36,400 
C)  $ 50,313 
D)  $123,023 
E)  $150,000

Question 5

On the balance sheet,a mortgage loan is recorded as the

Accepted Answer

A)  interest only. 
B)  sum of interest paid and the outstanding balance. 
C)  sum of interest due and the outstanding balance. 
D)  principal portion only. 
E)  none of the above. 
A)  interest only. 
B)  sum of interest paid and the outstanding balance. 
C)  sum of interest due and the outstanding balance. 
D)  principal portion only. 
E)  none of the above.

Question 6

If you obtain a loan to purchase a car in June,this loan amount would be included as income for June.

Accepted Answer

A) True 
 B)False

Question 7

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The liquidity ratio is designed to show the percentage of [your annual credit obligations | next months credit obligations] you could cover with your current assets.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 8

____ would not be a long-term financial goal.

Accepted Answer

A)  Purchasing a new car 
B)  Providing adequate life insurance 
C)  Reducing income taxes 
D)  Paying your phone bill 
E)  Planning for retirement 
A)  Purchasing a new car 
B)  Providing adequate life insurance 
C)  Reducing income taxes 
D)  Paying your phone bill 
E)  Planning for retirement

Question 9

Construct a balance sheet from the following information.Be sure the format is correct.(Show all work.)

Accepted Answer

The answer of Construct a balance sheet from the following...

Question 10

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Another term sometimes used for net worth is [collateral | equity].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 11

Interest you earned on your savings account would be an entry on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 12

Your auto loan payments would be listed as an expense on the income statement.

Accepted Answer

A) True 
 B)False

Question 13

The income statement is specific to

Accepted Answer

A)  one point in time. 
B)  a specific period of time. 
C)  last year. 
D)  next year. 
E)  none of these. 
A)  one point in time. 
B)  a specific period of time. 
C)  last year. 
D)  next year. 
E)  none of these.

Question 14

Jacque's total monthly loan payments are $1,020 while her gross income is $3,000 per month.What is her debt service ratio?

Accepted Answer

A)  34% 
B)  43% 
C)  50% 
D)  75% 
E)  82% 
A)  34% 
B)  43% 
C)  50% 
D)  75% 
E)  82%

Question 15

A cash surplus will typically produce a positive savings ratio.

Accepted Answer

A) True 
 B)False

Question 16

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Four categories,accounting for 75% of consumer spending,include [clothing | housing].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 17

Which of the following is not among the four categories accounting for almost three-quarters of consumer spending?

Accepted Answer

A)  Utilities 
B)  Food 
C)  Transportation 
D)  Housing 
E)  Personal insurance and pensions 
A)  Utilities 
B)  Food 
C)  Transportation 
D)  Housing 
E)  Personal insurance and pensions

Question 18

Financial planning is necessary only if you earn a lot of money.

Accepted Answer

A) True 
 B)False

Question 19

Inflation this coming year is expected to be 3 percent.If Mr.Gonza earned $45,000 this year,how much must he earn the following year just to keep up with inflation and maintain the balance between his income and his increasing expenditures? (Show all work.)

Accepted Answer

$45,000 + .03($45,00

Question 20

A balance sheet shows your financial condition as of the time the statement is prepared.

Accepted Answer

A) True 
 B)False

When estimating income for the income and expense statement,you should

A savings ratio expresses the

The income statement includes information on your latest paycheck.

Elena purchased a stamp collection for $5,000 thirty years ago.If it appreciated 8% annually,what is it worth today?

On the balance sheet,a mortgage loan is recorded as the

If you obtain a loan to purchase a car in June,this loan amount would be included as income for June.

____ would not be a long-term financial goal.

Construct a balance sheet from the following information.Be sure the format is correct.(Show all work.)

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Another term sometimes used for net worth is [collateral | equity].

Interest you earned on your savings account would be an entry on the balance sheet.

Your auto loan payments would be listed as an expense on the income statement.

The income statement is specific to

Jacque's total monthly loan payments are $1,020 while her gross income is $3,000 per month.What is her debt service ratio?

A cash surplus will typically produce a positive savings ratio.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Four categories,accounting for 75% of consumer spending,include [clothing | housing].

Which of the following is not among the four categories accounting for almost three-quarters of consumer spending?

Financial planning is necessary only if you earn a lot of money.

Inflation this coming year is expected to be 3 percent.If Mr.Gonza earned $45,000 this year,how much must he earn the following year just to keep up with inflation and maintain the balance between his income and his increasing expenditures? (Show all work.)

A balance sheet shows your financial condition as of the time the statement is prepared.

Understanding the Financial Planning Process

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 2: Using Financial Statements and Budgets

When estimating income for the income and expense statement,you should

A savings ratio expresses the

The income statement includes information on your latest paycheck.

Elena purchased a stamp collection for $5,000 thirty years ago.If it appreciated 8% annually,what is it worth today?

On the balance sheet,a mortgage loan is recorded as the

If you obtain a loan to purchase a car in June,this loan amount would be included as income for June.

____ would not be a long-term financial goal.

Construct a balance sheet from the following information.Be sure the format is correct.(Show all work.)

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Another term sometimes used for net worth is [collateral | equity].

Interest you earned on your savings account would be an entry on the balance sheet.

Your auto loan payments would be listed as an expense on the income statement.

The income statement is specific to

Jacque's total monthly loan payments are $1,020 while her gross income is $3,000 per month.What is her debt service ratio?

A cash surplus will typically produce a positive savings ratio.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Four categories,accounting for 75% of consumer spending,include [clothing | housing].

Which of the following is not among the four categories accounting for almost three-quarters of consumer spending?

Financial planning is necessary only if you earn a lot of money.

Inflation this coming year is expected to be 3 percent.If Mr.Gonza earned $45,000 this year,how much must he earn the following year just to keep up with inflation and maintain the balance between his income and his increasing expenditures? (Show all work.)

A balance sheet shows your financial condition as of the time the statement is prepared.

Understanding the Financial Planning Process

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters