Question 1

By analyzing financial statements,a person can assess his or her financial condition and progress.

Accepted Answer

A) True 
 B)False

Question 2

Maria Gomez would like to learn more about her financial situation.Help her calculate her current net worth.

Accepted Answer

A) $3,460 
B) $10,210 
C) $11,710 
D) $53,710 
A) $3,460 
B) $10,210 
C) $11,710 
D) $53,710

Question 3

The liquidity ratio reveals how many months it would take to convert all assets into cash.

Accepted Answer

A) True 
 B)False

Question 4

Roberto and Jessica Suarez have a gross income of $53,000 a year and annual expenses of $51,500 including taxes.Their annual debt payments total $15,000.According to the recommended standards for the debt -to-income ratio,the Saurez's ratio of

Accepted Answer

A) 36 percent and is too high for easily manageable debt repayment. 
B) 36 percent implies they have the ability to easily make their debt repayments. 
C) 28 percent is much too high for easily manageable debt repayment. 
D) 28 percent implies they have the ability to make their debt repayments. 
A) 36 percent and is too high for easily manageable debt repayment. 
B) 36 percent implies they have the ability to easily make their debt repayments. 
C) 28 percent is much too high for easily manageable debt repayment. 
D) 28 percent implies they have the ability to make their debt repayments.

Question 5

You can use the liquidity ratio to determine the number of months that you could continue to meet your expenses using only your monetary assets should all income cease.

Accepted Answer

A) True 
 B)False

Question 6

The Ronselli family has total assets of $460,000 and total liabilities of $186,000.Included in their total assets are monetary assets of $47,000 and investment assets of $253,000.What is the Ronsellis' investment assets-to-total assets ratio?

Accepted Answer

A) 26 percent 
B) 55 percent 
C) 65 percent 
D) 92 percent 
A) 26 percent 
B) 55 percent 
C) 65 percent 
D) 92 percent

Question 7

Which of the following is classified as an investment asset?

Accepted Answer

A) Certificates of deposit 
B) Money market accounts 
C) Primary residence 
D) Stocks 
A) Certificates of deposit 
B) Money market accounts 
C) Primary residence 
D) Stocks

Question 8

A cash-flow statement summarizes transactions that have taken place over a specific period of time.

Accepted Answer

A) True 
 B)False

Question 9

To construct a balance sheet,you need to compile dollar values for your assets and liabilities.Good sources from which to begin are

Accepted Answer

A) checkbook or savings account records. 
B) receipts of various payments. 
C) investment account statements. 
D) all of these. 
A) checkbook or savings account records. 
B) receipts of various payments. 
C) investment account statements. 
D) all of these.

Question 10

Eric Jones develops computer software for a major company.Eric's salary and bonuses total $82,000,but he pays $29,233 in income and Social Security taxes.If Eric's annual debt repayments are $33,620,what is his debt -to-income ratio?

Accepted Answer

A) 41 percent 
B) 64 percent 
C) 36 percent 
D) 77 percent 
A) 41 percent 
B) 64 percent 
C) 36 percent 
D) 77 percent

Question 11

A low asset-to-debt ratio is a positive indicator of financial well-being.

Accepted Answer

A) True 
 B)False

Question 12

Both individual retirement accounts (IRAs) and non-residential real estate property are investment assets.

Accepted Answer

A) True 
 B)False

Question 13

Mack and Amy are making regular contributions of $200 a month from their salaries to a money market savings account.These transactions will

Accepted Answer

A) increase their net worth on their balance sheet. 
B) decrease the surplus on their cash-flow statement. 
C) not change either their net worth or the surplus. 
D) both increase their net worth on their balance sheet and decrease the surplus on their income and expense statement. 
A) increase their net worth on their balance sheet. 
B) decrease the surplus on their cash-flow statement. 
C) not change either their net worth or the surplus. 
D) both increase their net worth on their balance sheet and decrease the surplus on their income and expense statement.

Question 14

A surplus demonstrates that you are managing your financial resources successfully and do not have to use savings or borrow to make financial ends meet.

Accepted Answer

A) True 
 B)False

Question 15

The purpose of a revolving savings fund is to

Accepted Answer

A) save for long-term goals. 
B) accumulate funds for large, irregular expenses. 
C) meet occasional deficits. 
D) both accumulate funds for large, irregular expenses and meet occasional deficits. 
A) save for long-term goals. 
B) accumulate funds for large, irregular expenses. 
C) meet occasional deficits. 
D) both accumulate funds for large, irregular expenses and meet occasional deficits.

Question 16

Jason and Larissa would like to accumulate three times their monthly expenses in monetary assets.They currently have $2,800 in their money market account,and their monthly expenses are $4,500.How much more do they need in their money market account to reach their goal?

Accepted Answer

A) $13,500 
B) $3,900 
C) $10,700 
D) $1,700 
A) $13,500 
B) $3,900 
C) $10,700 
D) $1,700

Question 17

Monetary assets include cash and near-cash items that can be readily converted to cash.

Accepted Answer

A) True 
 B)False

Question 18

Financial planning is only for the rich.

Accepted Answer

A) True 
 B)False

Question 19

A debt-payments-to-disposable-income ratio with monthly nonmortgage debt repayments of $470 and a disposable income of $3,615 would be ____ percent

Accepted Answer

A) 13 
B) 20 
C) 8 
D) 87 
A) 13 
B) 20 
C) 8 
D) 87

Question 20

Financial planning focuses primarily on spending wisely.

Accepted Answer

A) True 
 B)False

By analyzing financial statements,a person can assess his or her financial condition and progress.

Maria Gomez would like to learn more about her financial situation.Help her calculate her current net worth.

The liquidity ratio reveals how many months it would take to convert all assets into cash.

Roberto and Jessica Suarez have a gross income of $53,000 a year and annual expenses of $51,500 including taxes.Their annual debt payments total $15,000.According to the recommended standards for the debt -to-income ratio,the Saurez's ratio of

You can use the liquidity ratio to determine the number of months that you could continue to meet your expenses using only your monetary assets should all income cease.

The Ronselli family has total assets of $460,000 and total liabilities of $186,000.Included in their total assets are monetary assets of $47,000 and investment assets of $253,000.What is the Ronsellis' investment assets-to-total assets ratio?

Which of the following is classified as an investment asset?

A cash-flow statement summarizes transactions that have taken place over a specific period of time.

To construct a balance sheet,you need to compile dollar values for your assets and liabilities.Good sources from which to begin are

Eric Jones develops computer software for a major company.Eric's salary and bonuses total $82,000,but he pays $29,233 in income and Social Security taxes.If Eric's annual debt repayments are $33,620,what is his debt -to-income ratio?

A low asset-to-debt ratio is a positive indicator of financial well-being.

Both individual retirement accounts (IRAs) and non-residential real estate property are investment assets.

Mack and Amy are making regular contributions of $200 a month from their salaries to a money market savings account.These transactions will

A surplus demonstrates that you are managing your financial resources successfully and do not have to use savings or borrow to make financial ends meet.

The purpose of a revolving savings fund is to

Jason and Larissa would like to accumulate three times their monthly expenses in monetary assets.They currently have $2,800 in their money market account,and their monthly expenses are $4,500.How much more do they need in their money market account to reach their goal?

Monetary assets include cash and near-cash items that can be readily converted to cash.

Financial planning is only for the rich.

A debt-payments-to-disposable-income ratio with monthly nonmortgage debt repayments of $470 and a disposable income of $3,615 would be ____ percent

Financial planning focuses primarily on spending wisely.

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

By analyzing financial statements,a person can assess his or her financial condition and progress.

Maria Gomez would like to learn more about her financial situation.Help her calculate her current net worth.

The liquidity ratio reveals how many months it would take to convert all assets into cash.

Roberto and Jessica Suarez have a gross income of $53,000 a year and annual expenses of $51,500 including taxes.Their annual debt payments total $15,000.According to the recommended standards for the debt -to-income ratio,the Saurez's ratio of

You can use the liquidity ratio to determine the number of months that you could continue to meet your expenses using only your monetary assets should all income cease.

The Ronselli family has total assets of $460,000 and total liabilities of $186,000.Included in their total assets are monetary assets of $47,000 and investment assets of $253,000.What is the Ronsellis' investment assets-to-total assets ratio?

Which of the following is classified as an investment asset?

A cash-flow statement summarizes transactions that have taken place over a specific period of time.

To construct a balance sheet,you need to compile dollar values for your assets and liabilities.Good sources from which to begin are

Eric Jones develops computer software for a major company.Eric's salary and bonuses total $82,000,but he pays $29,233 in income and Social Security taxes.If Eric's annual debt repayments are $33,620,what is his debt -to-income ratio?

A low asset-to-debt ratio is a positive indicator of financial well-being.

Both individual retirement accounts (IRAs) and non-residential real estate property are investment assets.

Mack and Amy are making regular contributions of $200 a month from their salaries to a money market savings account.These transactions will

A surplus demonstrates that you are managing your financial resources successfully and do not have to use savings or borrow to make financial ends meet.

The purpose of a revolving savings fund is to

Jason and Larissa would like to accumulate three times their monthly expenses in monetary assets.They currently have $2,800 in their money market account,and their monthly expenses are $4,500.How much more do they need in their money market account to reach their goal?

Monetary assets include cash and near-cash items that can be readily converted to cash.

Financial planning is only for the rich.

A debt-payments-to-disposable-income ratio with monthly nonmortgage debt repayments of $470 and a disposable income of $3,615 would be ____ percent

Financial planning focuses primarily on spending wisely.

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