Question 1

Inability to reach short-term goals will significantly affect your ability to reach long-term goals.

Accepted Answer

A) True 
 B)False

Question 2

Net worth peaks at about age 65 and then diminishes throughout retirement years.

Accepted Answer

A) True 
 B)False

Question 3

The balance sheet describes a family's wealth

Accepted Answer

A)  at a certain point in tine. 
B)  as an annual summary. 
C)  as a time period less than one year. 
D)  at a future time. 
E)  none of these 
A)  at a certain point in tine. 
B)  as an annual summary. 
C)  as a time period less than one year. 
D)  at a future time. 
E)  none of these

Question 4

You may be under-budgeting for food if you continually have monthly deficits in the food category.

Accepted Answer

A) True 
 B)False

Question 5

Money I loaned to a friend is a liability on my balance sheet.

Accepted Answer

A) True 
 B)False

Question 6

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 word for take-home pay is [gross | disposable] income.

Accepted Answer

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

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.
-[Borrowing money from relatives | cutting low-priority expenses] is the preferable way to deal with budget deficits.

Accepted Answer

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

Question 8

If you listed your gross salary in the income portion of the budget,the expenditures section must include income taxes and social security.

Accepted Answer

A) True 
 B)False

Question 9

A cash deficit decreases net worth.

Accepted Answer

A) True 
 B)False

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.
-Your gross income was $32,000;your net income was $25,000;you saved $1,000.Your savings ratio was [3% | 4%].

Accepted Answer

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

Question 11

If your total assets equal $50,000 and your total liabilities equal $15,000;your debt ratio is

Accepted Answer

A)  30%. 
B)  70%. 
C)  143%. 
D)  233%. 
E)  333%. 
A)  30%. 
B)  70%. 
C)  143%. 
D)  233%. 
E)  333%.

Question 12

Jamie wants to have $1,000,000 for her retirement in 25 years.How much should she save annually if she thinks she can earn 10% on her investments?

Accepted Answer

The answer of Jamie wants to have $1,000,000 for her...

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.
-Payments made on your loan obligations should [increase | decrease] your net worth.

Accepted Answer

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

Question 14

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.
-Net worth is highest for those about [age 65 | age 85].

Accepted Answer

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

Question 15

Personal financial software is widely available,much of which is free.

Accepted Answer

A) True 
 B)False

Question 16

You are solvent if your

Accepted Answer

A)  total liabilities exceed total assets. 
B)  total assets exceed total liabilities. 
C)  total assets exceed net worth. 
D)  total liabilities exceed net worth. 
E)  none of these. 
A)  total liabilities exceed total assets. 
B)  total assets exceed total liabilities. 
C)  total assets exceed net worth. 
D)  total liabilities exceed net worth. 
E)  none of these.

Question 17

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.
-You bought a $500 stereo on the installment plan and made two payments of $75 during the year.On your income/expense statement for the year,you will show an expense of [$150 | $500].

Accepted Answer

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

Question 18

Sonny and Cher have a net worth of $35,000 and total assets of $200,000.If their revolving credit and unpaid bills total $2,200,what are their long-term liabilities?

Accepted Answer

A)  $115,000 
B)  $140,000 
C)  $142,200 
D)  $162,800 
E)  $165,000 
A)  $115,000 
B)  $140,000 
C)  $142,200 
D)  $162,800 
E)  $165,000

Question 19

Your total cash income is $40,000.You pay $5,000 in taxes and $30,000 in other expenses.Your savings ratio is

Accepted Answer

A)  7.5% 
B)  10.0% 
C)  12.5%. 
D)  13.3%. 
E)  14.3%. 
A)  7.5% 
B)  10.0% 
C)  12.5%. 
D)  13.3%. 
E)  14.3%.

Question 20

Russ buys his wife a valuable painting for $20,000.He purchases it using $15,000 from his savings and a $5,000 loan.How does this transaction affect Russ' balance sheet?

Accepted Answer

A)  His assets increase 
B)  His liabilities increase 
C)  His net worth stays the same 
D)  a and b 
E)  a, b and c 
A)  His assets increase 
B)  His liabilities increase 
C)  His net worth stays the same 
D)  a and b 
E)  a, b and c

Inability to reach short-term goals will significantly affect your ability to reach long-term goals.

Net worth peaks at about age 65 and then diminishes throughout retirement years.

The balance sheet describes a family's wealth

You may be under-budgeting for food if you continually have monthly deficits in the food category.

Money I loaned to a friend is a liability on my balance sheet.

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 word for take-home pay is [gross | disposable] income.

If you listed your gross salary in the income portion of the budget,the expenditures section must include income taxes and social security.

A cash deficit decreases net worth.

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. -Your gross income was $32,000;your net income was $25,000;you saved $1,000.Your savings ratio was [3% | 4%].

If your total assets equal $50,000 and your total liabilities equal $15,000;your debt ratio is

Jamie wants to have $1,000,000 for her retirement in 25 years.How much should she save annually if she thinks she can earn 10% on her investments?

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. -Payments made on your loan obligations should [increase | decrease] your net worth.

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. -Net worth is highest for those about [age 65 | age 85].

Personal financial software is widely available,much of which is free.

You are solvent if your

Sonny and Cher have a net worth of $35,000 and total assets of $200,000.If their revolving credit and unpaid bills total $2,200,what are their long-term liabilities?

Your total cash income is $40,000.You pay $5,000 in taxes and $30,000 in other expenses.Your savings ratio is

Russ buys his wife a valuable painting for $20,000.He purchases it using $15,000 from his savings and a $5,000 loan.How does this transaction affect Russ' balance sheet?

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

Inability to reach short-term goals will significantly affect your ability to reach long-term goals.

Net worth peaks at about age 65 and then diminishes throughout retirement years.

The balance sheet describes a family's wealth

You may be under-budgeting for food if you continually have monthly deficits in the food category.

Money I loaned to a friend is a liability on my balance sheet.

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 word for take-home pay is [gross | disposable] income.

If you listed your gross salary in the income portion of the budget,the expenditures section must include income taxes and social security.

A cash deficit decreases net worth.

If your total assets equal $50,000 and your total liabilities equal $15,000;your debt ratio is

Jamie wants to have $1,000,000 for her retirement in 25 years.How much should she save annually if she thinks she can earn 10% on her investments?

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. -Payments made on your loan obligations should [increase | decrease] your net worth.

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. -Net worth is highest for those about [age 65 | age 85].

Personal financial software is widely available,much of which is free.

You are solvent if your

Sonny and Cher have a net worth of $35,000 and total assets of $200,000.If their revolving credit and unpaid bills total $2,200,what are their long-term liabilities?

Your total cash income is $40,000.You pay $5,000 in taxes and $30,000 in other expenses.Your savings ratio is

Russ buys his wife a valuable painting for $20,000.He purchases it using $15,000 from his savings and a $5,000 loan.How does this transaction affect Russ' balance sheet?

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