Exam 3: Financial Statements,tools,and Budgets

Tran Zhao has monetary assets valued at $17,500 and monthly expenses of $2,525.Using the liquidity ratio,how long could Tran live on his monetary assets if he were to lose his job?​

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.According to the liquidity ratio,how long could Maria and John continue to meet their expenses after a total loss of income?​

The surplus section on an individual's cash-flow statement is similar to net profit for a business.

Pre-established plans of action to be implemented in specific circumstances are called​

Reconciling budget estimates includes reconciling conflicting needs and wants.

Values have little impact on financial goals.

Using a budget design that keeps a declining balance helps one​

The balance sheet serves as an assessment of assets and liabilities at fair market value as of a specified date.

A budget variance is the difference between one's actual expenditure with budgeted amount for a specific category.

Many experts recommend that people should have assets equal to one year's expenses in emergency cash reserves.

Paying off debts is an example of a financial goal even though it does not involve a direct purchase.