Question 1

In order to minimize the difficulty associated with meeting monthly loan payments,the debt service ratio should be

Accepted Answer

A)  above 50%. 
B)  below 50%. 
C)  at 35%. 
D)  below 35%. 
E)  above 20%. 
A)  above 50%. 
B)  below 50%. 
C)  at 35%. 
D)  below 35%. 
E)  above 20%.

Question 2

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 short-term goals you put into your financial plan [will | will not] affect the achievement of long-term goals.

Accepted Answer

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

Question 3

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.
-A budget will have value only if it is actually used and [records are kept of actual income/expenses | spending never deviates from the budgeted amount].

Accepted Answer

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

Question 4

All assets are recorded on the balance sheet at their original cost.

Accepted Answer

A) True 
 B)False

Question 5

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.
-When your assets exceed your liabilities,you are [saving | solvent].

Accepted Answer

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

Question 6

On an income statement covering January 1 to June 30,____ would not be included as income.

Accepted Answer

A)  wages and salaries received in that six months 
B)  interest received on June 30 
C)  auto sold with payment received May 15 
D)  inheritance granted in April, to be paid in September 
E)  income tax refund received April 14 
A)  wages and salaries received in that six months 
B)  interest received on June 30 
C)  auto sold with payment received May 15 
D)  inheritance granted in April, to be paid in September 
E)  income tax refund received April 14

Question 7

Most personal financial software is available at a reasonable cost.

Accepted Answer

A) True 
 B)False

Question 8

Assets purchased on credit should be included on the asset side of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 9

Dual-income families often face

Accepted Answer

A)  reduced employee benefit options. 
B)  increased complexity in their money management systems. 
C)  reduced expenditures as a result of the second job. 
D)  reduced taxes due to tax breaks. 
E)  increased time to spend with the family. 
A)  reduced employee benefit options. 
B)  increased complexity in their money management systems. 
C)  reduced expenditures as a result of the second job. 
D)  reduced taxes due to tax breaks. 
E)  increased time to spend with the family.

Question 10

If your total assets equal $87,000 and your total liabilities equal $10,000;your solvency ratio is

Accepted Answer

A)  11.5%. 
B)  13.0%. 
C)  77.0%. 
D)  87.0%. 
E)  88.5%. 
A)  11.5%. 
B)  13.0%. 
C)  77.0%. 
D)  87.0%. 
E)  88.5%.

Question 11

The expenditure categories for your budget should be determined by

Accepted Answer

A)  the BLS Urban Family Budget categories. 
B)  purchased budget book headings. 
C)  those used in previous years. 
D)  current and expected future spending. 
E)  itemized tax deductions. 
A)  the BLS Urban Family Budget categories. 
B)  purchased budget book headings. 
C)  those used in previous years. 
D)  current and expected future spending. 
E)  itemized tax deductions.

Question 12

Investment assets include items such as boats or automobiles.

Accepted Answer

A) True 
 B)False

Question 13

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.
-When your liabilities exceed your assets,you are [solvent | insolvent].

Accepted Answer

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

Question 14

Only the current month's payment on your mortgage loans would be listed on the balance sheet as a liability.

Accepted Answer

A) True 
 B)False

Question 15

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.
-A [house | certificate of deposit] is an example of a tangible asset.

Accepted Answer

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

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.
-A detailed forecast used to monitor and control expenses is called a [financial plan | income/expenditures statement].

Accepted Answer

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

Question 17

Phil has $2,000 and he needs it to grow to $4,000 in 8 years.Assuming he adds no more money to this fund,what rate of return would he need to earn?

Accepted Answer

A)  6% 
B)  7% 
C)  8% 
D)  9% 
E)  10% 
A)  6% 
B)  7% 
C)  8% 
D)  9% 
E)  10%

Question 18

The equity in your home is the difference between the loan balance and the purchase price.

Accepted Answer

A) True 
 B)False

Question 19

A cash budget has value only if you use it,review it regularly,and keep careful records of income and expenses.

Accepted Answer

A) True 
 B)False

Question 20

If you use net salary as income on your budget,the expenditures section must include income and social security taxes.

Accepted Answer

A) True 
 B)False

In order to minimize the difficulty associated with meeting monthly loan payments,the debt service ratio should be

All assets are recorded on the balance sheet at their original cost.

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. -When your assets exceed your liabilities,you are [saving | solvent].

On an income statement covering January 1 to June 30,____ would not be included as income.

Most personal financial software is available at a reasonable cost.

Assets purchased on credit should be included on the asset side of the balance sheet.

Dual-income families often face

If your total assets equal $87,000 and your total liabilities equal $10,000;your solvency ratio is

The expenditure categories for your budget should be determined by

Investment assets include items such as boats or automobiles.

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. -When your liabilities exceed your assets,you are [solvent | insolvent].

Only the current month's payment on your mortgage loans would be listed on the balance sheet as a liability.

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. -A [house | certificate of deposit] is an example of a tangible asset.

Phil has $2,000 and he needs it to grow to $4,000 in 8 years.Assuming he adds no more money to this fund,what rate of return would he need to earn?

The equity in your home is the difference between the loan balance and the purchase price.

A cash budget has value only if you use it,review it regularly,and keep careful records of income and expenses.

If you use net salary as income on your budget,the expenditures section must include income and social security taxes.

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

In order to minimize the difficulty associated with meeting monthly loan payments,the debt service ratio should be

All assets are recorded on the balance sheet at their original cost.

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. -When your assets exceed your liabilities,you are [saving | solvent].

On an income statement covering January 1 to June 30,____ would not be included as income.

Most personal financial software is available at a reasonable cost.

Assets purchased on credit should be included on the asset side of the balance sheet.

Dual-income families often face

If your total assets equal $87,000 and your total liabilities equal $10,000;your solvency ratio is

The expenditure categories for your budget should be determined by

Investment assets include items such as boats or automobiles.

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. -When your liabilities exceed your assets,you are [solvent | insolvent].

Only the current month's payment on your mortgage loans would be listed on the balance sheet as a liability.

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. -A [house | certificate of deposit] is an example of a tangible asset.

Phil has $2,000 and he needs it to grow to $4,000 in 8 years.Assuming he adds no more money to this fund,what rate of return would he need to earn?

The equity in your home is the difference between the loan balance and the purchase price.

A cash budget has value only if you use it,review it regularly,and keep careful records of income and expenses.

If you use net salary as income on your budget,the expenditures section must include income and social security taxes.

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