Question 1

Partners should max out their retirement savings separately.

Accepted Answer

A) True 
 B)False

Question 2

Tran Zhao has monetary assets valued at $17,500 and monthly expenses of $2,525.Using the liquidity ratio,how long could Tran live on his monetary assets if he were to lose his job?

Accepted Answer

A) Over 12 months 
B) About 7 months 
C) About 3 month 
D) Less than 1 month 
A) Over 12 months 
B) About 7 months 
C) About 3 month 
D) Less than 1 month

Question 3

Financial goals

Accepted Answer

A) should be explicitly stated. 
B) should be consistent with your values. 
C) all of these. 
D) none of these. 
A) should be explicitly stated. 
B) should be consistent with your values. 
C) all of these. 
D) none of these.

Question 4

Bookkeeping is the process of recording the sources and amounts of dollars earned and spent.

Accepted Answer

A) True 
 B)False

Question 5

A person is insolvent when he or she doesn't have enough current income to pay all of his or her current bills.

Accepted Answer

A) True 
 B)False

Question 6

Among the intermediate-term goals for capital accumulation is having a fund for emergencies.

Accepted Answer

A) True 
 B)False

Question 7

Food,clothing,and entertainment are examples of

Accepted Answer

A) short-term liabilities. 
B) variable expenses. 
C) fixed expenses. 
D) long-term liabilities. 
A) short-term liabilities. 
B) variable expenses. 
C) fixed expenses. 
D) long-term liabilities.

Question 8

Vincent and Paula Farelli have decided to pay off their $875 MasterCard debt by taking $875 out of their money market savings account.This transaction will

Accepted Answer

A) increase their net worth on their balance sheet. 
B) not change their net worth on their balance sheet. 
C) decrease the surplus on their income and expense statement. 
D) not change the surplus on their income and expense statement. 
A) increase their net worth on their balance sheet. 
B) not change their net worth on their balance sheet. 
C) decrease the surplus on their income and expense statement. 
D) not change the surplus on their income and expense statement.

Question 9

A cash-flow statement shows flows of income in and expenses out of your finances for a given period of time.

Accepted Answer

A) True 
 B)False

Question 10

The debt payments-to-disposable-income ratio is gross income divided by monthly nonmortgage debt repayments.

Accepted Answer

A) True 
 B)False

Question 11

A budget variance is the difference between the amount budgeted and the actual amount spent or received.

Accepted Answer

A) True 
 B)False

Question 12

Stephen Scott's monthly pay stub indicates that his monthly gross income is $3,800.However,$800 is withheld for income and Social Security taxes and $200 is withheld for his health and disability insurance.How much is Stephen's disposable income?

Accepted Answer

A) $2,600 
B) $2,800 
C) $3,000 
D) $3,800 
A) $2,600 
B) $2,800 
C) $3,000 
D) $3,800

Question 13

Households dependent on the income from a self-employed person may need a larger emergency cash reserve than others.

Accepted Answer

A) True 
 B)False

Question 14

Discretionary income is the money left over once the necessities of living are covered.

Accepted Answer

A) True 
 B)False

Question 15

To make realistic estimates of income and expenses,reliable financial information is critical.The more accurate the estimates,the more effective the budget.

Accepted Answer

A) True 
 B)False

Question 16

Financial ratios are numerical calculations that make assessments of financial conditions more complex.

Accepted Answer

A) True 
 B)False

Question 17

A surplus on your cash-flow statement indicates that you are

Accepted Answer

A) using savings to pay current expenses. 
B) managing your financial resources successfully. 
C) borrowing money to pay current expenses. 
D) both using savings to pay current expenses and borrowing money to pay current expenses. 
A) using savings to pay current expenses. 
B) managing your financial resources successfully. 
C) borrowing money to pay current expenses. 
D) both using savings to pay current expenses and borrowing money to pay current expenses.

Question 18

A balance sheet shows flows of income in and expenses out of your finances for a given period of time.

Accepted Answer

A) True 
 B)False

Question 19

The use of automated teller machines is recommended as a valid method of controlling expenditures.

Accepted Answer

A) True 
 B)False

Question 20

The major purpose of budgeting is to make sure bills get paid.

Accepted Answer

A) True 
 B)False

Partners should max out their retirement savings separately.

Tran Zhao has monetary assets valued at $17,500 and monthly expenses of $2,525.Using the liquidity ratio,how long could Tran live on his monetary assets if he were to lose his job?

Financial goals

Bookkeeping is the process of recording the sources and amounts of dollars earned and spent.

A person is insolvent when he or she doesn't have enough current income to pay all of his or her current bills.

Among the intermediate-term goals for capital accumulation is having a fund for emergencies.

Food,clothing,and entertainment are examples of

Vincent and Paula Farelli have decided to pay off their $875 MasterCard debt by taking $875 out of their money market savings account.This transaction will

A cash-flow statement shows flows of income in and expenses out of your finances for a given period of time.

The debt payments-to-disposable-income ratio is gross income divided by monthly nonmortgage debt repayments.

A budget variance is the difference between the amount budgeted and the actual amount spent or received.

Stephen Scott's monthly pay stub indicates that his monthly gross income is $3,800.However,$800 is withheld for income and Social Security taxes and $200 is withheld for his health and disability insurance.How much is Stephen's disposable income?

Households dependent on the income from a self-employed person may need a larger emergency cash reserve than others.

Discretionary income is the money left over once the necessities of living are covered.

To make realistic estimates of income and expenses,reliable financial information is critical.The more accurate the estimates,the more effective the budget.

Financial ratios are numerical calculations that make assessments of financial conditions more complex.

A surplus on your cash-flow statement indicates that you are

A balance sheet shows flows of income in and expenses out of your finances for a given period of time.

The use of automated teller machines is recommended as a valid method of controlling expenditures.

The major purpose of budgeting is to make sure bills get paid.

Understanding Personal Finance

Career Planning

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

Exam 3: Financial Statements,tools,and Budgets

Partners should max out their retirement savings separately.

Tran Zhao has monetary assets valued at $17,500 and monthly expenses of $2,525.Using the liquidity ratio,how long could Tran live on his monetary assets if he were to lose his job?

Financial goals

Bookkeeping is the process of recording the sources and amounts of dollars earned and spent.

A person is insolvent when he or she doesn't have enough current income to pay all of his or her current bills.

Among the intermediate-term goals for capital accumulation is having a fund for emergencies.

Food,clothing,and entertainment are examples of

Vincent and Paula Farelli have decided to pay off their $875 MasterCard debt by taking $875 out of their money market savings account.This transaction will

A cash-flow statement shows flows of income in and expenses out of your finances for a given period of time.

The debt payments-to-disposable-income ratio is gross income divided by monthly nonmortgage debt repayments.

A budget variance is the difference between the amount budgeted and the actual amount spent or received.

Stephen Scott's monthly pay stub indicates that his monthly gross income is $3,800.However,$800 is withheld for income and Social Security taxes and $200 is withheld for his health and disability insurance.How much is Stephen's disposable income?

Households dependent on the income from a self-employed person may need a larger emergency cash reserve than others.

Discretionary income is the money left over once the necessities of living are covered.

To make realistic estimates of income and expenses,reliable financial information is critical.The more accurate the estimates,the more effective the budget.

Financial ratios are numerical calculations that make assessments of financial conditions more complex.

A surplus on your cash-flow statement indicates that you are

A balance sheet shows flows of income in and expenses out of your finances for a given period of time.

The use of automated teller machines is recommended as a valid method of controlling expenditures.

The major purpose of budgeting is to make sure bills get paid.

Understanding Personal Finance

Career Planning

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters