Question 1

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

Accepted Answer

A)  ​Next month's rent 
B)  ​Credit card debt 
C)  ​Education loans 
D)  ​A car loan 
A)  ​Next month's rent 
B)  ​Credit card debt 
C)  ​Education loans 
D)  ​A car loan

Question 2

When a college student saves all summer so that he or she has money available to live on during the school year;he or she is using a revolving savings fund.

Accepted Answer

A) True 
 B)False

Question 3

Specific financial goals drive the creation of budgets.

Accepted Answer

A) True 
 B)False

Question 4

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 current net worth.

Accepted Answer

A)  ​$26,325 
B)  ​$25,025 
C)  ​$23,825 
D)  ​$16,325 
A)  ​$26,325 
B)  ​$25,025 
C)  ​$23,825 
D)  ​$16,325

Question 5

The debt-to-income ratio provides a view of total debt burden of an individual or family by comparing the dollars spent on gross annual debt repayments with gross annual income.

Accepted Answer

A) True 
 B)False

Question 6

Keeping track of all income and expenses is very important to achieving your financial objectives.

Accepted Answer

A) True 
 B)False

Question 7

Food,clothing,and entertainment 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 8

Which of the following types of assets is primarily used for the maintenance of a lifestyle?​

Accepted Answer

A)  ​Monetary 
B)  ​Tangible 
C)  ​Investment 
D)  ​Capital 
A)  ​Monetary 
B)  ​Tangible 
C)  ​Investment 
D)  ​Capital

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

To make realistic estimates of income and expenses,reliable financial information is critical.The more accurate the estimates,the more effective the budget.

Accepted Answer

A) True 
 B)False

Question 12

The two most useful financial statements are ____ and ____.

Accepted Answer

A)  federal tax returns;income and expense statements​ 
B)  ​cash-flow statements;balance sheets 
C)  ​balance sheets;wills 
D)  ​wills;federal tax returns 
A)  federal tax returns;income and expense statements​ 
B)  ​cash-flow statements;balance sheets 
C)  ​balance sheets;wills 
D)  ​wills;federal tax returns

Question 13

After the budgeting period has ended,you need to add up the actual income received and expenditures made during that period.

Accepted Answer

A) True 
 B)False

Question 14

Original deeds and mortgage papers should be stored in one's home file.

Accepted Answer

A) True 
 B)False

Question 15

Financial planning is a single,customized plan regarding a person's financial affairs.

Accepted Answer

A) True 
 B)False

Question 16

Budget estimates are the projected dollar amounts in a budget that one plans to receive or spend during the period covered by the budget.

Accepted Answer

A) True 
 B)False

Question 17

Child support received,Social Security benefits,and public assistance are all examples of

Accepted Answer

A)  ​expenses. 
B)  ​assets. 
C)  ​income. 
D)  ​both assets and income. 
A)  ​expenses. 
B)  ​assets. 
C)  ​income. 
D)  ​both assets and income.

Question 18

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 19

Which of the following provides information about a person's financial condition at a specific point in time?​

Accepted Answer

A)  ​Balance sheet 
B)  ​Federal tax return 
C)  ​Income and expense statement 
D)  ​All of these 
A)  ​Balance sheet 
B)  ​Federal tax return 
C)  ​Income and expense statement 
D)  ​All of these

Question 20

Disposable income is income​

Accepted Answer

A)  ​before taxes. 
B)  ​after all employer withholding including taxes. 
C)  ​after all employer withholding except taxes. 
D)  ​minus fixed expenditures. 
A)  ​before taxes. 
B)  ​after all employer withholding including taxes. 
C)  ​after all employer withholding except taxes. 
D)  ​minus fixed expenditures.

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

When a college student saves all summer so that he or she has money available to live on during the school year;he or she is using a revolving savings fund.

Specific financial goals drive the creation of budgets.

The debt-to-income ratio provides a view of total debt burden of an individual or family by comparing the dollars spent on gross annual debt repayments with gross annual income.

Keeping track of all income and expenses is very important to achieving your financial objectives.

Food,clothing,and entertainment are examples of

Which of the following types of assets is primarily used for the maintenance of a lifestyle?

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

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

To make realistic estimates of income and expenses,reliable financial information is critical.The more accurate the estimates,the more effective the budget.

The two most useful financial statements are and .

After the budgeting period has ended,you need to add up the actual income received and expenditures made during that period.

Original deeds and mortgage papers should be stored in one's home file.

Financial planning is a single,customized plan regarding a person's financial affairs.

Budget estimates are the projected dollar amounts in a budget that one plans to receive or spend during the period covered by the budget.

Child support received,Social Security benefits,and public assistance are all examples of

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.

Which of the following provides information about a person's financial condition at a specific point in time?

Disposable income is income

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

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

When a college student saves all summer so that he or she has money available to live on during the school year;he or she is using a revolving savings fund.

Specific financial goals drive the creation of budgets.

The debt-to-income ratio provides a view of total debt burden of an individual or family by comparing the dollars spent on gross annual debt repayments with gross annual income.

Keeping track of all income and expenses is very important to achieving your financial objectives.

Food,clothing,and entertainment are examples of​

Which of the following types of assets is primarily used for the maintenance of a lifestyle?​

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

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

To make realistic estimates of income and expenses,reliable financial information is critical.The more accurate the estimates,the more effective the budget.

The two most useful financial statements are ____ and ____.

After the budgeting period has ended,you need to add up the actual income received and expenditures made during that period.

Original deeds and mortgage papers should be stored in one's home file.

Financial planning is a single,customized plan regarding a person's financial affairs.

Budget estimates are the projected dollar amounts in a budget that one plans to receive or spend during the period covered by the budget.

Child support received,Social Security benefits,and public assistance are all examples of

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.

Which of the following provides information about a person's financial condition at a specific point in time?​

Disposable income is income​

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

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

Food,clothing,and entertainment are examples of

Which of the following types of assets is primarily used for the maintenance of a lifestyle?

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

The two most useful financial statements are and .

Which of the following provides information about a person's financial condition at a specific point in time?

Disposable income is income