Question 1

You are more likely to achieve your goals if a definite goal date is set.

Accepted Answer

A) True 
 B)False

Question 2

The balance sheet describes a family's financial position:

Accepted Answer

A)  at a certain point in time. 
B)  as an annual summary. 
C)  as at a time period less than one year. 
D)  at a future time. 
E)  none of these 
A)  at a certain point in time. 
B)  as an annual summary. 
C)  as at a time period less than one year. 
D)  at a future time. 
E)  none of these

Question 3

Using the future value calculations to estimate the funds needed to meet a goal takes compounding into account.

Accepted Answer

A) True 
 B)False

Question 4

The financial planning process is regulated by state governments when done by professionals.

Accepted Answer

A) True 
 B)False

Question 5

Net worth peaks at about age 65 and then diminishes throughout retirement years.

Accepted Answer

A) True 
 B)False

Question 6

The Hamptons want to have $1,750,000 for their retirement in 30 years.How much should they save annually if they think they can earn 8% on their investments?

Accepted Answer

The answer of The Hamptons want to have $1,750,000 for...

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

A family could have a positive savings ratio at the same time its debt service ratio is increasing.

Accepted Answer

A) True 
 B)False

Question 9

The income and expenditures statement is a summary of actual income and expenditures over a specific period of time.

Accepted Answer

A) True 
 B)False

Question 10

A budget is a detailed financial forecast.

Accepted Answer

A) True 
 B)False

Question 11

The balance sheet equation is assets plus liabilities equals net worth.

Accepted Answer

A) True 
 B)False

Question 12

The income statement includes:

Accepted Answer

A)  income,liabilities,and net worth. 
B)  income,expenditure,and cash surplus or deficit. 
C)  expenditures,net worth,and cash surplus or deficit. 
D)  net worth,surplus,and income or expenditures. 
E)  savings,surplus,and income or expenditures. 
A)  income,liabilities,and net worth. 
B)  income,expenditure,and cash surplus or deficit. 
C)  expenditures,net worth,and cash surplus or deficit. 
D)  net worth,surplus,and income or expenditures. 
E)  savings,surplus,and income or expenditures.

Question 13

A(n)_____ would not be listed as an asset on your balance sheet.

Accepted Answer

A)  mortgaged home 
B)  savings account 
C)  owned automobile 
D)  checking account 
E)  leased automobile 
A)  mortgaged home 
B)  savings account 
C)  owned automobile 
D)  checking account 
E)  leased automobile

Question 14

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 gross income was $32,000; your net income was $25,000; you saved $1,000.Your savings ratio was [3% | 4%].

Accepted Answer

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

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.
-If you pay off your debt but make no changes in your assets,your net worth will [increase | decrease].

Accepted Answer

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

Question 16

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.
-You bought a $500 stereo on the installment plan and made two payments of $75 during the year.On your income/expense statement for the year,you will show an expense of [$150 | $500].

Accepted Answer

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

Question 17

When the income statement indicates a surplus,this may be used to increase net worth by increasing assets or decreasing liabilities.

Accepted Answer

A) True 
 B)False

Question 18

You are more likely to achieve your financial goals when:

Accepted Answer

A)  your current income is low. 
B)  financial goal dates are inflexible. 
C)  short- and long-term goals are combined. 
D)  financial plans are reassessed and revised periodically. 
E)  one person controls all goals in the household. 
A)  your current income is low. 
B)  financial goal dates are inflexible. 
C)  short- and long-term goals are combined. 
D)  financial plans are reassessed and revised periodically. 
E)  one person controls all goals in the household.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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.
-[Present | Future] value is the value today of an amount to be received in the future.

Accepted Answer

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

You are more likely to achieve your goals if a definite goal date is set.

The balance sheet describes a family's financial position:

Using the future value calculations to estimate the funds needed to meet a goal takes compounding into account.

The financial planning process is regulated by state governments when done by professionals.

Net worth peaks at about age 65 and then diminishes throughout retirement years.

The Hamptons want to have $1,750,000 for their retirement in 30 years.How much should they save annually if they think they can earn 8% on their investments?

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

A family could have a positive savings ratio at the same time its debt service ratio is increasing.

The income and expenditures statement is a summary of actual income and expenditures over a specific period of time.

A budget is a detailed financial forecast.

The balance sheet equation is assets plus liabilities equals net worth.

The income statement includes:

A(n)_____ would not be listed as an asset on your balance sheet.

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. -If you pay off your debt but make no changes in your assets,your net worth will [increase | decrease].

When the income statement indicates a surplus,this may be used to increase net worth by increasing assets or decreasing liabilities.

You are more likely to achieve your financial goals when:

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

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. -[Present | Future] value is the value today of an amount to be received in the future.

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

You are more likely to achieve your goals if a definite goal date is set.

The balance sheet describes a family's financial position:

Using the future value calculations to estimate the funds needed to meet a goal takes compounding into account.

The financial planning process is regulated by state governments when done by professionals.

Net worth peaks at about age 65 and then diminishes throughout retirement years.

The Hamptons want to have $1,750,000 for their retirement in 30 years.How much should they save annually if they think they can earn 8% on their investments?

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

A family could have a positive savings ratio at the same time its debt service ratio is increasing.

The income and expenditures statement is a summary of actual income and expenditures over a specific period of time.

A budget is a detailed financial forecast.

The balance sheet equation is assets plus liabilities equals net worth.

The income statement includes:

A(n)_____ would not be listed as an asset on your balance sheet.

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. -If you pay off your debt but make no changes in your assets,your net worth will [increase | decrease].

When the income statement indicates a surplus,this may be used to increase net worth by increasing assets or decreasing liabilities.

You are more likely to achieve your financial goals when:

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

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. -[Present | Future] value is the value today of an amount to be received in the future.

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