Question 1

A cash-flow statement shows the value of your assets and liabilities as of a specific date.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Rent and vehicle insurance payments 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 4

A budgeting device on which annual estimated income and expenses are recorded for each month in an effort to look at surplus or deficit situations is called a​

Accepted Answer

A)  ​cash-flow calendar. 
B)  ​revolving savings fund. 
C)  ​cash budget. 
D)  ​budget control statement. 
A)  ​cash-flow calendar. 
B)  ​revolving savings fund. 
C)  ​cash budget. 
D)  ​budget control statement.

Question 5

There should be enough money in a revolving savings fund to

Accepted Answer

A)  ​pay all short-term debt. 
B)  ​avoid running out of money. 
C)  ​pay all fixed expenditures. 
D)  ​pay for all long-term goals. 
A)  ​pay all short-term debt. 
B)  ​avoid running out of money. 
C)  ​pay all fixed expenditures. 
D)  ​pay for all long-term goals.

Question 6

Safe-deposit boxes take two keys to open,and the financial institution where the box is located keeps one of these keys.

Accepted Answer

A) True 
 B)False

Question 7

NARRBEGIN: Figure 3-1
Figure 3-1
Maria and John Sanchez have just completed their third annual set of financial statements.They met in a personal finance class while in college and still remember their instructor's advice regarding the importance of knowing their financial condition and progress.Even before they got married,they decided that each year on February 2 (Groundhog Day)they would update their cash-flow statement and their balance sheet.
​
The following information is taken from their latest financial statements:
​​  
-Refer to Figure 3-1.What is Maria and John's asset-to-debt ratio?​

Accepted Answer

A)  ​0.57 
B)  ​35.0 
C)  ​2.56 
D)  ​1.77 
A)  ​0.57 
B)  ​35.0 
C)  ​2.56 
D)  ​1.77

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Your goal in financial planning is to manage your income and wealth in such a way that your goals are met in a suitable manner.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

The investment assets-to-total assets ratio compares the value of your investment assets with your total assets.

Accepted Answer

A) True 
 B)False

Question 12

NARRBEGIN: Figure 3-1
Figure 3-1
Maria and John Sanchez have just completed their third annual set of financial statements.They met in a personal finance class while in college and still remember their instructor's advice regarding the importance of knowing their financial condition and progress.Even before they got married,they decided that each year on February 2 (Groundhog Day)they would update their cash-flow statement and their balance sheet.
​
The following information is taken from their latest financial statements:
​​  
-Refer to Figure 3-1.Calculate Maria and John's surplus (loss)for the year.

Accepted Answer

A)  ​$2,503 
B)  ​$1,200 
C)  ​($1,200) 
D)  ($11,800)​ 
A)  ​$2,503 
B)  ​$1,200 
C)  ​($1,200) 
D)  ($11,800)​

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

A balance sheet includes ____,____,and ____.

Accepted Answer

A)  ​income;expenses;net worth 
B)  ​assets;expenses;liabilities 
C)  ​income;liabilities;net worth 
D)  ​assets;liabilities;net worth 
A)  ​income;expenses;net worth 
B)  ​assets;expenses;liabilities 
C)  ​income;liabilities;net worth 
D)  ​assets;liabilities;net worth

Question 15

For most people,the only way to increase net worth is to spend less than their income;people must save and invest.

Accepted Answer

A) True 
 B)False

Question 16

Budgeting gives one control over his or her finances.

Accepted Answer

A) True 
 B)False

Question 17

A cash-flow statement is also known as a(n)____ statement.

Accepted Answer

A)  ​income and expense 
B)  ​net worth 
C)  ​taxable income 
D)  ​asset-and-liability 
A)  ​income and expense 
B)  ​net worth 
C)  ​taxable income 
D)  ​asset-and-liability

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Successful financial planning requires identifying the one best investment asset for an individual,then putting all of an individual's surplus into that asset.

Accepted Answer

A) True 
 B)False

Question 20

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.

A cash-flow statement shows the value of your assets and liabilities as of a specific date.

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

Rent and vehicle insurance payments are examples of

A budgeting device on which annual estimated income and expenses are recorded for each month in an effort to look at surplus or deficit situations is called a

There should be enough money in a revolving savings fund to

Safe-deposit boxes take two keys to open,and the financial institution where the box is located keeps one of these keys.

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

Your goal in financial planning is to manage your income and wealth in such a way that your goals are met in a suitable manner.

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

The investment assets-to-total assets ratio compares the value of your investment assets with your total assets.

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

A balance sheet includes ,,and .

For most people,the only way to increase net worth is to spend less than their income;people must save and invest.

Budgeting gives one control over his or her finances.

A cash-flow statement is also known as a(n)____ statement.

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

Successful financial planning requires identifying the one best investment asset for an individual,then putting all of an individual's surplus into that asset.

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

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

Investing Through Mutual Funds

Real Estate and High-Risk Investments

Retirement Planning

Filters

Exam 3: Financial Statements,tools,and Budgets

A cash-flow statement shows the value of your assets and liabilities as of a specific date.

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

Rent and vehicle insurance payments are examples of​

A budgeting device on which annual estimated income and expenses are recorded for each month in an effort to look at surplus or deficit situations is called a​

There should be enough money in a revolving savings fund to

Safe-deposit boxes take two keys to open,and the financial institution where the box is located keeps one of these keys.

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

Your goal in financial planning is to manage your income and wealth in such a way that your goals are met in a suitable manner.

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

The investment assets-to-total assets ratio compares the value of your investment assets with your total assets.

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

A balance sheet includes ____,____,and ____.

For most people,the only way to increase net worth is to spend less than their income;people must save and invest.

Budgeting gives one control over his or her finances.

A cash-flow statement is also known as a(n)____ statement.

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

Successful financial planning requires identifying the one best investment asset for an individual,then putting all of an individual's surplus into that asset.

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

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

Investing Through Mutual Funds

Real Estate and High-Risk Investments

Retirement Planning

Filters

Rent and vehicle insurance payments are examples of

A budgeting device on which annual estimated income and expenses are recorded for each month in an effort to look at surplus or deficit situations is called a

A balance sheet includes ,,and .

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