Question 1

A liquid asset is most appropriately described as one that is

Accepted Answer

A) cash in a checking account. 
B) cash or any other asset that is easily converted to cash with no loss in market value. 
C) cash or any other asset that is marketable. 
D) cash and all other assets except those specifically designated as retirement assets. 
A) cash in a checking account. 
B) cash or any other asset that is easily converted to cash with no loss in market value. 
C) cash or any other asset that is marketable. 
D) cash and all other assets except those specifically designated as retirement assets.

Question 2

At the end of 2005,Phil had a net worth of $10,000.During 2008,he plans to save $2,000 and he also expects the market value of his assets to increase by 5%.If Phil's total liabilities were $4,000 at December 31,2007,his December 31,2008 net worth will be

Accepted Answer

A) $12,000. 
B) $12,500. 
C) $12,700. 
D) $12,800. 
A) $12,000. 
B) $12,500. 
C) $12,700. 
D) $12,800.

Question 3

The most appropriate definition of a balance sheet is that it is a statement that shows

Accepted Answer

A) a balance between one's goals and resources available to achieve them. 
B) a realistic balance between income and expenses for an upcoming period. 
C) your wealth (net worth)as of a specific date. 
D) how to balance your financial books of account. 
A) a balance between one's goals and resources available to achieve them. 
B) a realistic balance between income and expenses for an upcoming period. 
C) your wealth (net worth)as of a specific date. 
D) how to balance your financial books of account.

Question 4

Unanticipated (unplanned)inflation makes it easier to reach our financial goals.

Accepted Answer

A) True 
 B)False

Question 5

In order to simplify the record-keeping chores of budgeting,you should use cash to pay bills whenever you can.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is not true concerning the monthly income and expense plan?

Accepted Answer

A) Each month's expenses are planned not to exceed the month's income. 
B) The year's expenses and income are detailed by each month. 
C) Some monthly allocations are made by simply dividing the annual estimate by 12. 
D) It may indicate the need for effective cash management. 
A) Each month's expenses are planned not to exceed the month's income. 
B) The year's expenses and income are detailed by each month. 
C) Some monthly allocations are made by simply dividing the annual estimate by 12. 
D) It may indicate the need for effective cash management.

Question 7

The "bottom line" to a personal income statement is the contribution to savings figure.

Accepted Answer

A) True 
 B)False

Question 8

For balance sheet purposes,the best definition of a liability is anything that impedes your financial progress.

Accepted Answer

A) True 
 B)False

Question 9

Liquid assets are less risky than investment assets.

Accepted Answer

A) True 
 B)False

Question 10

An automobile is usually an example of a lifestyle asset.

Accepted Answer

A) True 
 B)False

Question 11

Creating your own vouchers may be desirable when you use cash to pay bills.

Accepted Answer

A) True 
 B)False

Question 12

An example of an inflexible expense is entertainment.

Accepted Answer

A) True 
 B)False

Question 13

A liquid asset is any asset that can be sold quickly,even if such a sale results in a loss.

Accepted Answer

A) True 
 B)False

Question 14

If your liquidity ratio is 1.50,you have

Accepted Answer

A) $1.50 in liquid assets for $1.00 of take-home pay. 
B) $1.50 in liquid assets for $1.00 of current liabilities. 
C) $1.50 in liquid assets for $1.00 of total liabilities. 
D) $1.50 in liquid assets for $1.00 of total assets. 
A) $1.50 in liquid assets for $1.00 of take-home pay. 
B) $1.50 in liquid assets for $1.00 of current liabilities. 
C) $1.50 in liquid assets for $1.00 of total liabilities. 
D) $1.50 in liquid assets for $1.00 of total assets.

Question 15

A key function of the monthly income and expense plan is to identify months of cash shortages.

Accepted Answer

A) True 
 B)False

Question 16

In relation to the balance sheet,an income statement shows

Accepted Answer

A) net worth,not the period's savings or dissavings. 
B) the period's savings or dissavings,not net worth. 
C) activities at a point in time,not over a period of time. 
D) financial position,not financial performance. 
A) net worth,not the period's savings or dissavings. 
B) the period's savings or dissavings,not net worth. 
C) activities at a point in time,not over a period of time. 
D) financial position,not financial performance.

Question 17

In preparing an annual budget,allow for unexpected events by stating broad and general goals.

Accepted Answer

A) True 
 B)False

Question 18

If an income account has a favorable variance,then actual family income is less than budgeted family income.

Accepted Answer

A) True 
 B)False

Question 19

Funds invested in retirement plans are shown as liquid assets.

Accepted Answer

A) True 
 B)False

Question 20

Market value changes in net worth arise from current period savings or dissavings.

Accepted Answer

A) True 
 B)False

A liquid asset is most appropriately described as one that is

At the end of 2005,Phil had a net worth of $10,000.During 2008,he plans to save $2,000 and he also expects the market value of his assets to increase by 5%.If Phil's total liabilities were $4,000 at December 31,2007,his December 31,2008 net worth will be

The most appropriate definition of a balance sheet is that it is a statement that shows

Unanticipated (unplanned)inflation makes it easier to reach our financial goals.

In order to simplify the record-keeping chores of budgeting,you should use cash to pay bills whenever you can.

Which of the following statements is not true concerning the monthly income and expense plan?

The "bottom line" to a personal income statement is the contribution to savings figure.

For balance sheet purposes,the best definition of a liability is anything that impedes your financial progress.

Liquid assets are less risky than investment assets.

An automobile is usually an example of a lifestyle asset.

Creating your own vouchers may be desirable when you use cash to pay bills.

An example of an inflexible expense is entertainment.

A liquid asset is any asset that can be sold quickly,even if such a sale results in a loss.

If your liquidity ratio is 1.50,you have

A key function of the monthly income and expense plan is to identify months of cash shortages.

In relation to the balance sheet,an income statement shows

In preparing an annual budget,allow for unexpected events by stating broad and general goals.

If an income account has a favorable variance,then actual family income is less than budgeted family income.

Funds invested in retirement plans are shown as liquid assets.

Market value changes in net worth arise from current period savings or dissavings.

Financial Planning: Why Its Important to You

The Time Value of Money: All Dollars Are Not Created Equal

Taxes: the Governments Share of Your Rewards

Liquidity Management: Managing Current Assets and Current Liabilities

Short-Term Credit Management: Consumer Credit

Consumer Durables: the Personal Auto

Housing: the Cost of Shelter

Financial Markets and Instruments: Learning the Investment Environment

Investment Basics: Understanding Risk and Return

Stocks and Bonds: Your Most Common Investments

Mutual Fundsother Pooling Arrangements: Simplifying, Maybe Improving Investment Performance

Property and Liability Insurance: Protecting Your Lifestyle Assets

Health Care and Disability Insurance: Protecting Your Earning Capacity

Life Insurance and Estate Planning: Protecting Your Dependents

Retirement Planning: Planning for Your Long-Term Needs

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Exam 3: Financial Statement and Budgets: Where Are You Now and Where Are You Going

A liquid asset is most appropriately described as one that is

At the end of 2005,Phil had a net worth of $10,000.During 2008,he plans to save $2,000 and he also expects the market value of his assets to increase by 5%.If Phil's total liabilities were $4,000 at December 31,2007,his December 31,2008 net worth will be

The most appropriate definition of a balance sheet is that it is a statement that shows

Unanticipated (unplanned)inflation makes it easier to reach our financial goals.

In order to simplify the record-keeping chores of budgeting,you should use cash to pay bills whenever you can.

Which of the following statements is not true concerning the monthly income and expense plan?

The "bottom line" to a personal income statement is the contribution to savings figure.

For balance sheet purposes,the best definition of a liability is anything that impedes your financial progress.

Liquid assets are less risky than investment assets.

An automobile is usually an example of a lifestyle asset.

Creating your own vouchers may be desirable when you use cash to pay bills.

An example of an inflexible expense is entertainment.

A liquid asset is any asset that can be sold quickly,even if such a sale results in a loss.

If your liquidity ratio is 1.50,you have

A key function of the monthly income and expense plan is to identify months of cash shortages.

In relation to the balance sheet,an income statement shows

In preparing an annual budget,allow for unexpected events by stating broad and general goals.

If an income account has a favorable variance,then actual family income is less than budgeted family income.

Funds invested in retirement plans are shown as liquid assets.

Market value changes in net worth arise from current period savings or dissavings.

Financial Planning: Why Its Important to You

The Time Value of Money: All Dollars Are Not Created Equal

Taxes: the Governments Share of Your Rewards

Liquidity Management: Managing Current Assets and Current Liabilities

Short-Term Credit Management: Consumer Credit

Consumer Durables: the Personal Auto

Housing: the Cost of Shelter

Financial Markets and Instruments: Learning the Investment Environment

Investment Basics: Understanding Risk and Return

Stocks and Bonds: Your Most Common Investments

Mutual Fundsother Pooling Arrangements: Simplifying, Maybe Improving Investment Performance

Property and Liability Insurance: Protecting Your Lifestyle Assets

Health Care and Disability Insurance: Protecting Your Earning Capacity

Life Insurance and Estate Planning: Protecting Your Dependents

Retirement Planning: Planning for Your Long-Term Needs

Filters