Question 1

The primary purpose of setting long-term financial goals is to help

Accepted Answer

A) measure financial success or failure 
B) provide direction for overall financial planning. 
C) acquire great wealth. 
D) achieve a comfortable retirement. 
A) measure financial success or failure 
B) provide direction for overall financial planning. 
C) acquire great wealth. 
D) achieve a comfortable retirement.

Question 2

A debt-to-income ratio of 0.36 or less is considered manageable for most families.

Accepted Answer

A) True 
 B)False

Question 3

Cindy Estrada is applying for a loan and the bank has asked her for some financial information.Use the following data to calculate Cindy's net worth.

Accepted Answer

A) $121,025 
B) $129,725 
C) $130,375 
D) $131,025 
A) $121,025 
B) $129,725 
C) $130,375 
D) $131,025

Question 4

Which of the following would be classified as a long-term liability?

Accepted Answer

A) Credit card debt 
B) Bank card debt 
C) Education loan balance 
D) All of these 
A) Credit card debt 
B) Bank card debt 
C) Education loan balance 
D) All of these

Question 5

The major purpose of budgeting is to reach your financial goals.

Accepted Answer

A) True 
 B)False

Question 6

It is usually easy to reduce a fixed expense.

Accepted Answer

A) True 
 B)False

Question 7

Most people keep track of their finances on a cash basis rather than on an accrual basis.

Accepted Answer

A) True 
 B)False

Question 8

Savings set aside can be categorized as both fixed and variable expenses.

Accepted Answer

A) True 
 B)False

Question 9

Budgeting is narrower in scope than overall financial planning as it is primarily concerned with projecting future income and expenditures over a period of time.

Accepted Answer

A) True 
 B)False

Question 10

A short-term goal is one that is projected to be achieved within how much time?

Accepted Answer

A) one month 
B) three months 
C) one year 
D) five years 
A) one month 
B) three months 
C) one year 
D) five years

Question 11

The best method to control overspending is to regularly monitor unexpended balances in each budget classification.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is the best example of a well-stated financial goal?

Accepted Answer

A) Buy a $3,000 computer in 18 months 
B) Purchase a three-bedroom home in five years 
C) Buy a $2,000 stereo 
D) Pay off your credit cards as soon as possible 
A) Buy a $3,000 computer in 18 months 
B) Purchase a three-bedroom home in five years 
C) Buy a $2,000 stereo 
D) Pay off your credit cards as soon as possible

Question 13

A balance sheet describes an individual's financial progress over a period of time,generally a year.

Accepted Answer

A) True 
 B)False

Question 14

Blaine and Lindsay McDonald have total assets valued at $346,000 and total debt of $168,000.What is Blaine and Lindsay's asset-to-debt ratio?

Accepted Answer

A) 2.06 
B) 1.00 
C) 0.51 
D) 0.49 
A) 2.06 
B) 1.00 
C) 0.51 
D) 0.49

Question 15

Checking account statements provide a source of information for the value of

Accepted Answer

A) assets. 
B) liabilities. 
C) investments. 
D) expenditures. 
A) assets. 
B) liabilities. 
C) investments. 
D) expenditures.

Question 16

Discretionary income is the money people use to pay for the necessities of life.

Accepted Answer

A) True 
 B)False

Question 17

In general,tangible assets do not depreciate in value over time.

Accepted Answer

A) True 
 B)False

Question 18

Janice Leno has the following assets and debts listed on her balance sheet:
​
 
Janice's asset-to-debt ratio is

Accepted Answer

A) 3.55 
B) 2.54 
C) 3.96 
D) 0.29 
A) 3.55 
B) 2.54 
C) 3.96 
D) 0.29

Question 19

A net surplus in your monthly budget cannot be carried forward to the next month.

Accepted Answer

A) True 
 B)False

Question 20

A family with two income earners will always need a greater amount of cash reserves than a family with one earner.

Accepted Answer

A) True 
 B)False

The primary purpose of setting long-term financial goals is to help

A debt-to-income ratio of 0.36 or less is considered manageable for most families.

Cindy Estrada is applying for a loan and the bank has asked her for some financial information.Use the following data to calculate Cindy's net worth.

Which of the following would be classified as a long-term liability?

The major purpose of budgeting is to reach your financial goals.

It is usually easy to reduce a fixed expense.

Most people keep track of their finances on a cash basis rather than on an accrual basis.

Savings set aside can be categorized as both fixed and variable expenses.

Budgeting is narrower in scope than overall financial planning as it is primarily concerned with projecting future income and expenditures over a period of time.

A short-term goal is one that is projected to be achieved within how much time?

The best method to control overspending is to regularly monitor unexpended balances in each budget classification.

Which of the following is the best example of a well-stated financial goal?

A balance sheet describes an individual's financial progress over a period of time,generally a year.

Blaine and Lindsay McDonald have total assets valued at $346,000 and total debt of $168,000.What is Blaine and Lindsay's asset-to-debt ratio?

Checking account statements provide a source of information for the value of

Discretionary income is the money people use to pay for the necessities of life.

In general,tangible assets do not depreciate in value over time.

Janice Leno has the following assets and debts listed on her balance sheet: Janice's asset-to-debt ratio is

A net surplus in your monthly budget cannot be carried forward to the next month.

A family with two income earners will always need a greater amount of cash reserves than a family with one earner.

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

The primary purpose of setting long-term financial goals is to help

A debt-to-income ratio of 0.36 or less is considered manageable for most families.

Cindy Estrada is applying for a loan and the bank has asked her for some financial information.Use the following data to calculate Cindy's net worth.

Which of the following would be classified as a long-term liability?

The major purpose of budgeting is to reach your financial goals.

It is usually easy to reduce a fixed expense.

Most people keep track of their finances on a cash basis rather than on an accrual basis.

Savings set aside can be categorized as both fixed and variable expenses.

Budgeting is narrower in scope than overall financial planning as it is primarily concerned with projecting future income and expenditures over a period of time.

A short-term goal is one that is projected to be achieved within how much time?

The best method to control overspending is to regularly monitor unexpended balances in each budget classification.

Which of the following is the best example of a well-stated financial goal?

A balance sheet describes an individual's financial progress over a period of time,generally a year.

Blaine and Lindsay McDonald have total assets valued at $346,000 and total debt of $168,000.What is Blaine and Lindsay's asset-to-debt ratio?

Checking account statements provide a source of information for the value of

Discretionary income is the money people use to pay for the necessities of life.

In general,tangible assets do not depreciate in value over time.

Janice Leno has the following assets and debts listed on her balance sheet: ​ Janice's asset-to-debt ratio is

A net surplus in your monthly budget cannot be carried forward to the next month.

A family with two income earners will always need a greater amount of cash reserves than a family with one earner.

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

Janice Leno has the following assets and debts listed on her balance sheet: Janice's asset-to-debt ratio is