Question 1

If you listed your gross salary in the income portion of the budget,the expenditures section must include income taxes and social security taxes.

Accepted Answer

A) True 
 B)False

Question 2

Jamil invested $9,500 in an account he expects will earn 5% annually.Approximately how many years will it take for the account to double in value?

Accepted Answer

A) 8.8 
B) 9.7 
C) 10.8 
D) 11.4 
E) 14.4 
A) 8.8 
B) 9.7 
C) 10.8 
D) 11.4 
E) 14.4

Question 3

Your auto loan payments would be listed as an expense on the income and expense statement.

Accepted Answer

A) True 
 B)False

Question 4

Budgets are

Accepted Answer

A) restrictive. 
B) complicated. 
C) forward looking. 
D) permanent. 
E) retrospective. 
A) restrictive. 
B) complicated. 
C) forward looking. 
D) permanent. 
E) retrospective.

Question 5

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.
-A personal balance sheet provides a statement of your financial [position | performance].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 6

The savings ratio is calculated by dividing the cash surplus by before-tax income.

Accepted Answer

A) True 
 B)False

Question 7

The savings ratio is useful in the evaluation of the personal balance sheet.

Accepted Answer

A) True 
 B)False

Question 8

A cash budget should help you to

Accepted Answer

A) achieve your short-term financial goals. 
B) implement disciplined spending. 
C) eliminate needless spending. 
D) allocate funds to savings and investments. 
E) do all of these. 
A) achieve your short-term financial goals. 
B) implement disciplined spending. 
C) eliminate needless spending. 
D) allocate funds to savings and investments. 
E) do all of these.

Question 9

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.
-A(n)[auto loan balance | insurance premium] would be an example of a current liability.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 10

Money I loaned to a friend is a liability on my balance sheet.

Accepted Answer

A) True 
 B)False

Question 11

Mary and Tom purchased their home for $150,000,and it is now worth $175,000.Its asset value is $150,000.

Accepted Answer

A) True 
 B)False

Question 12

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.
-[Borrowing money | Cutting low-priority expenses] is the preferable way to deal with a budget deficit.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 13

Personal balance sheet liabilities should be recorded at their

Accepted Answer

A) original outstanding balance. 
B) year-end outstanding balance. 
C) average outstanding balance. 
D) current outstanding balance. 
E) none of these. 
A) original outstanding balance. 
B) year-end outstanding balance. 
C) average outstanding balance. 
D) current outstanding balance. 
E) none of these.

Question 14

Rosa and Jose have liquid assets of $5,000 and other assets of $50,000.Their total liabilities equal $26,000.What is their net worth? (Show all work.)

Accepted Answer

The answer of Rosa and Jose have liquid assets of...

Question 15

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.
-A [house | certificate of deposit] is an example of a tangible asset.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 16

Using time value of money is important when planning for long-term goals.

Accepted Answer

A) True 
 B)False

Question 17

If you use net salary as income on your budget,the expenditures section must include income taxes and social security taxes.

Accepted Answer

A) True 
 B)False

Question 18

The savings ratio indicates the percentage of after-tax income that is saved.

Accepted Answer

A) True 
 B)False

Question 19

What can you do if your budget shows an annual budget deficit?

Accepted Answer

A) Liquidate enough savings and investments to meet the total budget shortfall for the year. 
B) Borrow enough to meet the total budget shortfall for the year. 
C) Cut low-priority expenses from the budget. 
D) Increase income. 
E) All of the above. 
A) Liquidate enough savings and investments to meet the total budget shortfall for the year. 
B) Borrow enough to meet the total budget shortfall for the year. 
C) Cut low-priority expenses from the budget. 
D) Increase income. 
E) All of the above.

Question 20

_____ is an example of a variable expense.

Accepted Answer

A) Mortgage payment 
B) Food 
C) Car payment 
D) Monthly insurance premium 
E) Professional dues 
A) Mortgage payment 
B) Food 
C) Car payment 
D) Monthly insurance premium 
E) Professional dues

If you listed your gross salary in the income portion of the budget,the expenditures section must include income taxes and social security taxes.

Jamil invested $9,500 in an account he expects will earn 5% annually.Approximately how many years will it take for the account to double in value?

Your auto loan payments would be listed as an expense on the income and expense statement.

Budgets are

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. -A personal balance sheet provides a statement of your financial [position | performance].

The savings ratio is calculated by dividing the cash surplus by before-tax income.

The savings ratio is useful in the evaluation of the personal balance sheet.

A cash budget should help you to

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. -A(n)[auto loan balance | insurance premium] would be an example of a current liability.

Money I loaned to a friend is a liability on my balance sheet.

Mary and Tom purchased their home for $150,000,and it is now worth $175,000.Its asset value is $150,000.

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. -[Borrowing money | Cutting low-priority expenses] is the preferable way to deal with a budget deficit.

Personal balance sheet liabilities should be recorded at their

Rosa and Jose have liquid assets of $5,000 and other assets of $50,000.Their total liabilities equal $26,000.What is their net worth? (Show all work.)

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. -A [house | certificate of deposit] is an example of a tangible asset.

Using time value of money is important when planning for long-term goals.

If you use net salary as income on your budget,the expenditures section must include income taxes and social security taxes.

The savings ratio indicates the percentage of after-tax income that is saved.

What can you do if your budget shows an annual budget deficit?

_____ is an example of a variable expense.

Understanding the Financial Planning Process

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 2: Using Financial Statements and Budgets

If you listed your gross salary in the income portion of the budget,the expenditures section must include income taxes and social security taxes.

Jamil invested $9,500 in an account he expects will earn 5% annually.Approximately how many years will it take for the account to double in value?

Your auto loan payments would be listed as an expense on the income and expense statement.

Budgets are

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. -A personal balance sheet provides a statement of your financial [position | performance].

The savings ratio is calculated by dividing the cash surplus by before-tax income.

The savings ratio is useful in the evaluation of the personal balance sheet.

A cash budget should help you to

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. -A(n)[auto loan balance | insurance premium] would be an example of a current liability.

Money I loaned to a friend is a liability on my balance sheet.

Mary and Tom purchased their home for $150,000,and it is now worth $175,000.Its asset value is $150,000.

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. -[Borrowing money | Cutting low-priority expenses] is the preferable way to deal with a budget deficit.

Personal balance sheet liabilities should be recorded at their

Rosa and Jose have liquid assets of $5,000 and other assets of $50,000.Their total liabilities equal $26,000.What is their net worth? (Show all work.)

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. -A [house | certificate of deposit] is an example of a tangible asset.

Using time value of money is important when planning for long-term goals.

If you use net salary as income on your budget,the expenditures section must include income taxes and social security taxes.

The savings ratio indicates the percentage of after-tax income that is saved.

What can you do if your budget shows an annual budget deficit?

_____ is an example of a variable expense.

Understanding the Financial Planning Process

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters