Question 1

You are more likely to achieve your goals when

Accepted Answer

A)  your income is high. 
B)  goal dates are inflexible. 
C)  short- and long-term goals are established separately. 
D)  goals are reassessed and revised periodically. 
E)  one person controls all goals in the household. 
A)  your income is high. 
B)  goal dates are inflexible. 
C)  short- and long-term goals are established separately. 
D)  goals are reassessed and revised periodically. 
E)  one person controls all goals in the household.

Question 2

Net worth is highest at about what age?

Accepted Answer

A)  45 
B)  55 
C)  65 
D)  75 
E)  85 
A)  45 
B)  55 
C)  65 
D)  75 
E)  85

Question 3

The Flemings will need $80,000 annually for 20 years during retirement.How much will they need at retirement if they can earn a 4% rate of return?

Accepted Answer

The answer of The Flemings will need $80,000 annually for...

Question 4

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 [credit card bill | credit card balance] would be an example of a current liability.

Accepted Answer

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

Question 5

All of the following are stages in preparing a cash budget except:

Accepted Answer

A)  estimating income 
B)  estimating expenses 
C)  calculating depreciation expense 
D)  finalizing the cash budget 
A)  estimating income 
B)  estimating expenses 
C)  calculating depreciation expense 
D)  finalizing the cash budget

Question 6

The balance sheet equation is:

Accepted Answer

A)  Total Assets / Total Liabilities = Net Worth. 
B)  Total Assets * Total Liabilities = Net Worth. 
C)  Total Assets - Total Liabilities = Net Worth. 
D)  Total Assets + Total Liabilities = Net Worth. 
E)  Total Liabilities - Total Assets = Net Worth. 
A)  Total Assets / Total Liabilities = Net Worth. 
B)  Total Assets * Total Liabilities = Net Worth. 
C)  Total Assets - Total Liabilities = Net Worth. 
D)  Total Assets + Total Liabilities = Net Worth. 
E)  Total Liabilities - Total Assets = Net Worth.

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.
-Financial planning and budgeting [do | do not] mean the same thing.

Accepted Answer

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

Question 8

Which of the following has been determined to be the best way for dual-income families to handle their money management?

Accepted Answer

A)  Place all income into a single, joint account. 
B)  Have each spouse contribute equal amounts to a joint account for family expenses. 
C)  Have each spouse contribute an equal proportion of their incomes to a joint account for family expenses. 
D)  Have one spouse make all the financial decisions 
E)  None of the above. 
A)  Place all income into a single, joint account. 
B)  Have each spouse contribute equal amounts to a joint account for family expenses. 
C)  Have each spouse contribute an equal proportion of their incomes to a joint account for family expenses. 
D)  Have one spouse make all the financial decisions 
E)  None of the above.

Question 9

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 car has a market value of $10,000 while the balance of the loan against it is now $2,500.You will list this car as an asset worth of [$7,500 | $10,000].

Accepted Answer

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

Question 10

____ is an example of an personal asset.

Accepted Answer

A)  Jewelry 
B)  Recreational equipment 
C)  Corporate bond 
D)  Charge account balance 
E)  Auto insurance premium 
A)  Jewelry 
B)  Recreational equipment 
C)  Corporate bond 
D)  Charge account balance 
E)  Auto insurance premium

Question 11

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.
-Short-term goals are usually based on a maximum period of [one year | five years].

Accepted Answer

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

Question 12

The need for budget adjustments is indicated when

Accepted Answer

A)  income is stable. 
B)  account deficits and surpluses balance out. 
C)  account deficits are more than surpluses. 
D)  a new calendar year begins. 
E)  short-term financial goals are achieved. 
A)  income is stable. 
B)  account deficits and surpluses balance out. 
C)  account deficits are more than surpluses. 
D)  a new calendar year begins. 
E)  short-term financial goals are achieved.

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.
-[Medical expenses | Rent payments] would be more difficult to estimate for the coming year.

Accepted Answer

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

Question 14

If your statement of income and expenditures shows a deficit,you may have

Accepted Answer

A)  increased your debts. 
B)  increased your assets. 
C)  added to savings. 
D)  bought additional insurance. 
E)  paid off some of your debts. 
A)  increased your debts. 
B)  increased your assets. 
C)  added to savings. 
D)  bought additional insurance. 
E)  paid off some of your debts.

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.
-The primary function of financial statements is to provide a picture of your [actual | projected] financial position.

Accepted Answer

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

Question 16

A budget is a detailed financial forecast.

Accepted Answer

A) True 
 B)False

Question 17

Another term sometimes used instead of net worth is

Accepted Answer

A)  assets. 
B)  net debts. 
C)  long-term liabilities 
D)  equity. 
E)  liquid assets. 
A)  assets. 
B)  net debts. 
C)  long-term liabilities 
D)  equity. 
E)  liquid assets.

Question 18

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.
-Personal financial software is mostly available for [free | a fee].

Accepted Answer

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

Question 19

Most types of personal property depreciate,or decline in value,shortly after being put into use.

Accepted Answer

A) True 
 B)False

Question 20

Kathy purchased new furniture for $10,000.She put $1,000 down and financed $9,000.She will pay $350 per month until the loan is paid off.Which of the following are true?

Accepted Answer

A)  The furniture should be recorded as an asset of $10,000 on Kathy's balance sheet. 
B)  The $9,000 is entered as a liability on Kathy's balance sheet. 
C)  The furniture should be recorded as a $1,000 expenditure on Kathy's balance sheet. 
D)  The $350 payments are expenditures on Kathy's income and expenditure statement. 
E)  All are correct except c 
A)  The furniture should be recorded as an asset of $10,000 on Kathy's balance sheet. 
B)  The $9,000 is entered as a liability on Kathy's balance sheet. 
C)  The furniture should be recorded as a $1,000 expenditure on Kathy's balance sheet. 
D)  The $350 payments are expenditures on Kathy's income and expenditure statement. 
E)  All are correct except c

You are more likely to achieve your goals when

Net worth is highest at about what age?

The Flemings will need $80,000 annually for 20 years during retirement.How much will they need at retirement if they can earn a 4% rate of return?

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 [credit card bill | credit card balance] would be an example of a current liability.

All of the following are stages in preparing a cash budget except:

The balance sheet equation is:

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. -Financial planning and budgeting [do | do not] mean the same thing.

Which of the following has been determined to be the best way for dual-income families to handle their money management?

____ is an example of an personal asset.

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. -Short-term goals are usually based on a maximum period of [one year | five years].

The need for budget adjustments is indicated when

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. -[Medical expenses | Rent payments] would be more difficult to estimate for the coming year.

If your statement of income and expenditures shows a deficit,you may have

A budget is a detailed financial forecast.

Another term sometimes used instead of net worth is

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. -Personal financial software is mostly available for [free | a fee].

Most types of personal property depreciate,or decline in value,shortly after being put into use.

Kathy purchased new furniture for $10,000.She put $1,000 down and financed $9,000.She will pay $350 per month until the loan is paid off.Which of the following are true?

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

You are more likely to achieve your goals when

Net worth is highest at about what age?

The Flemings will need $80,000 annually for 20 years during retirement.How much will they need at retirement if they can earn a 4% rate of return?

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 [credit card bill | credit card balance] would be an example of a current liability.

All of the following are stages in preparing a cash budget except:

The balance sheet equation is:

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. -Financial planning and budgeting [do | do not] mean the same thing.

Which of the following has been determined to be the best way for dual-income families to handle their money management?

____ is an example of an personal asset.

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. -Short-term goals are usually based on a maximum period of [one year | five years].

The need for budget adjustments is indicated when

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. -[Medical expenses | Rent payments] would be more difficult to estimate for the coming year.

If your statement of income and expenditures shows a deficit,you may have

A budget is a detailed financial forecast.

Another term sometimes used instead of net worth is

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. -Personal financial software is mostly available for [free | a fee].

Most types of personal property depreciate,or decline in value,shortly after being put into use.

Kathy purchased new furniture for $10,000.She put $1,000 down and financed $9,000.She will pay $350 per month until the loan is paid off.Which of the following are true?

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