Exam 2: Using Financial Statements and Budgets

Elena purchased a stamp collection for $5,000 thirty years ago.If its value appreciated at 8% annually,what is it worth today? (Round the answer to the nearest unit place.)

A cash surplus on an income and expense statement prepared on a cash basis indicates that:

An individual should prepare his or her personal financial statements once in five years.

The Wilsons' short-term goals might include:

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

When estimating income for the income and expense statement,you should:

Mike and Teresa have a monthly gross income of $5,000.They pay $1,000 per month toward taxes and $2,000 per month toward various loans.What is their debt service ratio?

When your assets exceed your liabilities,you are ____________. ​

If your _____,your net worth on the balance sheet will increase from one period to the next.

You record _____ on an income and expense statement.

If an individual obtains a loan to purchase a car in June,this loan amount will be included as income for the month of June.

A cash budget will have value only if it is actually used and ____________. ​

Financial plans provide direction to annual budgets.

A ____________ is an example of a tangible asset. ​

Your car has a market value of $4,000,while the balance of the loan against it is now $2,500.Your ownership interest in the car is ____________. ​

There is a need for budget adjustments when:

Budgeting and record keeping are the same.

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

Your _____ is an example of a liquid asset.

____________ value is the value today of an amount to be received in the future. ​