Question 1

The income and expenditures statement examines your financial

Accepted Answer

A)  level. 
B)  performance. 
C)  position. 
D)  assets. 
E)  objectives. 
A)  level. 
B)  performance. 
C)  position. 
D)  assets. 
E)  objectives.

Question 2

A family could have a positive savings ratio at the same time its debt service ratio is increasing.

Accepted Answer

A) True 
 B)False

Question 3

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-Short-term goals are usually based on a maximum period of [one year | five years].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 4

A house and land are examples of financial property.

Accepted Answer

A) True 
 B)False

Question 5

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-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

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 6

You are more likely to achieve your goals if a definite goal date is set.

Accepted Answer

A) True 
 B)False

Question 7

A cash budget has value only if you use it,review it regularly,and keep careful records of income and expenses.

Accepted Answer

A) True 
 B)False

Question 8

You have a balanced budget when total income for the year equals or exceeds total expenditures for the year.

Accepted Answer

A) True 
 B)False

Question 9

All assets are recorded on the balance sheet at their original cost.

Accepted Answer

A) True 
 B)False

Question 10

The expenditure categories for your budget should be determined by

Accepted Answer

A)  the BLS Urban Family Budget categories. 
B)  purchased budget book headings. 
C)  those used in previous years. 
D)  current and expected future spending. 
E)  itemized tax deductions. 
A)  the BLS Urban Family Budget categories. 
B)  purchased budget book headings. 
C)  those used in previous years. 
D)  current and expected future spending. 
E)  itemized tax deductions.

Question 11

Net income (after taxes)should be used when developing an income and expense statement.

Accepted Answer

A) True 
 B)False

Question 12

Rosa and Jose have liquid assets of $5,000 and other assets of $50,000.Their total liabilities equal $26,000.What is their net worth?

Accepted Answer

The answer of Rosa and Jose have liquid assets of...

Question 13

____ would not be listed as a liability on your balance sheet.

Accepted Answer

A)  Taxes owed 
B)  Loan balances 
C)  Bank credit card charges 
D)  Savings accounts 
E)  Rent due 
A)  Taxes owed 
B)  Loan balances 
C)  Bank credit card charges 
D)  Savings accounts 
E)  Rent due

Question 14

The income and expenditures statement is a summary of actual income and expenditures over a specific point of time.

Accepted Answer

A) True 
 B)False

Question 15

Your total cash income is $40,000.You pay $5,000 in taxes and $30,000 in other expenses.Your savings ratio is

Accepted Answer

A)  7.5% 
B)  10.0% 
C)  12.5%. 
D)  13.3%. 
E)  14.3%. 
A)  7.5% 
B)  10.0% 
C)  12.5%. 
D)  13.3%. 
E)  14.3%.

Question 16

In a budget,"fun money" is a budget category used for family members to spend as they like without having to account for how it is spent.

Accepted Answer

A) True 
 B)False

Question 17

Russ buys his wife a valuable painting for $20,000.He purchases it using $15,000 from his savings and a $5,000 loan.How does this transaction affect Russ' balance sheet?

Accepted Answer

A)  His assets increase 
B)  His liabilities increase 
C)  His net worth stays the same 
D)  a and b 
E)  a,b and c 
A)  His assets increase 
B)  His liabilities increase 
C)  His net worth stays the same 
D)  a and b 
E)  a,b and c

Question 18

Using the future value calculations to estimate the funds needed to meet a goal takes compounding into account.

Accepted Answer

A) True 
 B)False

Question 19

Using time value of money is important when planning for long-term goals.

Accepted Answer

A) True 
 B)False

Question 20

Mandy and Jeff have a net worth of $25,000 and total assets of $140,000.If their revolving credit and unpaid bills total $2,200,what are their total liabilities?

Accepted Answer

A)  $115,000 
B)  $140,000 
C)  $142,200 
D)  $165,000 
E)  $167,200 
A)  $115,000 
B)  $140,000 
C)  $142,200 
D)  $165,000 
E)  $167,200

The income and expenditures statement examines your financial

A family could have a positive savings ratio at the same time its debt service ratio is increasing.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Short-term goals are usually based on a maximum period of [one year | five years].

A house and land are examples of financial property.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -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].

You are more likely to achieve your goals if a definite goal date is set.

A cash budget has value only if you use it,review it regularly,and keep careful records of income and expenses.

You have a balanced budget when total income for the year equals or exceeds total expenditures for the year.

All assets are recorded on the balance sheet at their original cost.

The expenditure categories for your budget should be determined by

Net income (after taxes)should be used when developing an income and expense statement.

Rosa and Jose have liquid assets of $5,000 and other assets of $50,000.Their total liabilities equal $26,000.What is their net worth?

____ would not be listed as a liability on your balance sheet.

The income and expenditures statement is a summary of actual income and expenditures over a specific point of time.

Your total cash income is $40,000.You pay $5,000 in taxes and $30,000 in other expenses.Your savings ratio is

In a budget,"fun money" is a budget category used for family members to spend as they like without having to account for how it is spent.

Russ buys his wife a valuable painting for $20,000.He purchases it using $15,000 from his savings and a $5,000 loan.How does this transaction affect Russ' balance sheet?

Using the future value calculations to estimate the funds needed to meet a goal takes compounding into account.

Using time value of money is important when planning for long-term goals.

Mandy and Jeff have a net worth of $25,000 and total assets of $140,000.If their revolving credit and unpaid bills total $2,200,what are their total liabilities?

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

The income and expenditures statement examines your financial

A family could have a positive savings ratio at the same time its debt service ratio is increasing.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -Short-term goals are usually based on a maximum period of [one year | five years].

A house and land are examples of financial property.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select -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].

You are more likely to achieve your goals if a definite goal date is set.

A cash budget has value only if you use it,review it regularly,and keep careful records of income and expenses.

You have a balanced budget when total income for the year equals or exceeds total expenditures for the year.

All assets are recorded on the balance sheet at their original cost.

The expenditure categories for your budget should be determined by

Net income (after taxes)should be used when developing an income and expense statement.

Rosa and Jose have liquid assets of $5,000 and other assets of $50,000.Their total liabilities equal $26,000.What is their net worth?

____ would not be listed as a liability on your balance sheet.

The income and expenditures statement is a summary of actual income and expenditures over a specific point of time.

Your total cash income is $40,000.You pay $5,000 in taxes and $30,000 in other expenses.Your savings ratio is

In a budget,"fun money" is a budget category used for family members to spend as they like without having to account for how it is spent.

Russ buys his wife a valuable painting for $20,000.He purchases it using $15,000 from his savings and a $5,000 loan.How does this transaction affect Russ' balance sheet?

Using the future value calculations to estimate the funds needed to meet a goal takes compounding into account.

Using time value of money is important when planning for long-term goals.

Mandy and Jeff have a net worth of $25,000 and total assets of $140,000.If their revolving credit and unpaid bills total $2,200,what are their total liabilities?

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