Exam 2: Using Financial Statements and Budgets

____ would be an example of a fixed expense.

When a cash surplus exists on your income and expense statement,you can use it to

The main purpose of a budget is to

The best way to balance your budget is to increase borrowing.

Approximately 50 percent of Americans prepare a detailed household budget.

Construct a personal balance sheet from the following information.Be sure the format is correct.(Show all work.) Cash on hand \ 75 Bank credit card balance 1,200 Utility bill (over due) 100 Auto loan balance 3,500 Mortgage 75,000 Primary residence 105,000 Jewelry 2,000 Stocks 17,500 Coin collection 2,500 2001 Toyota 7,500

Interest you earned on your savings account would be an entry on your personal balance sheet.

Only four categories of spending account for almost 90% of all consumer expenditures.

The time period covered by an income and expense statement is usually

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -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 in the assets section of your personal balance sheet at [$7,500 | $10,000].

Personal financial statements help you identify potential financial problems.

The value of assets purchased on credit should be included on the asset side of your personal balance sheet.

Jamie wants to have $1,000,000 for her retirement in 25 years.How much should she save annually if she thinks she can earn 10% on her investments?

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Financial planning and budgeting [do | do not] mean the same thing.

Personal net worth is highest at about what age range?

A budget is a detailed statement of what income and expenses occurred over a past period.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -When your assets exceed your liabilities,you are [saving | solvent].

The personal balance sheet and income and expense statement should be prepared at least annually.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Net worth is typically highest for those in the age bracket of [ages 65?74 | ages 75 and older].

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Four categories,accounting for 75% of consumer spending,include [clothing | housing].