Question 1

Budgeting and record keeping are really the same activity.

Accepted Answer

A) True 
 B)False

Question 2

The need for budget adjustments is indicated when:

Accepted Answer

A)  income is stable. 
B)  account deficits and surpluses balance out. 
C)  account deficits are more than surpluses. 
D)  a new calendar year begins. 
E)  short-term financial goals are achieved. 
A)  income is stable. 
B)  account deficits and surpluses balance out. 
C)  account deficits are more than surpluses. 
D)  a new calendar year begins. 
E)  short-term financial goals are achieved.

Question 3

_____ would be an example of a periodic expense.

Accepted Answer

A)  Food 
B)  Vacation 
C)  Utilities 
D)  Taxes 
E)  none of these 
A)  Food 
B)  Vacation 
C)  Utilities 
D)  Taxes 
E)  none of these

Question 4

In a budget,"fun money" is a budget category used for family members to spend as they like without having to account for how it is spent.

Accepted Answer

A) True 
 B)False

Question 5

Budgets are:

Accepted Answer

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

Question 6

Inflation is expected to be 3 percent in the coming year.If Mr.Gonza earned $45,000 this year,how much must he earn the following year just to keep up with inflation and maintain the balance between his income and his increasing expenditures?

Accepted Answer

To keep up with an inflation of 3% in th

Question 7

The expenditure categories for your budget should be determined by:

Accepted Answer

A)  the BLS Urban Family Budget categories. 
B)  purchased budget book headings. 
C)  the affordability to meet the expenses. 
D)  current and expected future spending. 
E)  itemized tax deductions. 
A)  the BLS Urban Family Budget categories. 
B)  purchased budget book headings. 
C)  the affordability to meet the expenses. 
D)  current and expected future spending. 
E)  itemized tax deductions.

Question 8

When a cash surplus exists on your income and expenditure statements,you can:

Accepted Answer

A)  acquire assets. 
B)  pay off existing debts. 
C)  increase your savings. 
D)  increase your investments. 
E)  do any of the above. 
A)  acquire assets. 
B)  pay off existing debts. 
C)  increase your savings. 
D)  increase your investments. 
E)  do any of the above.

Question 9

Jewelry,furniture,and computers are examples of personal property.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Construct a balance sheet from the following information.Be sure the format is correct.

Accepted Answer

The answer of Construct a balance sheet from the following...

Question 12

A charge made on your credit card becomes a liability as soon as the charge is incurred.

Accepted Answer

A) True 
 B)False

Question 13

The level of the debt service ratio would indicate your ability to meet loan payments out of current income.

Accepted Answer

A) True 
 B)False

Question 14

I should not record _____ on an income and expense statement for the period from January 1 to June 30.

Accepted Answer

A)  an $800 refrigerator bought on credit on May 30 
B)  a paid March telephone bill 
C)  health insurance premiums deducted from monthly pay checks 
D)  checking account service charges 
E)  groceries bought and paid for in June 
A)  an $800 refrigerator bought on credit on May 30 
B)  a paid March telephone bill 
C)  health insurance premiums deducted from monthly pay checks 
D)  checking account service charges 
E)  groceries bought and paid for in June

Question 15

Net worth is highest at about what age?

Accepted Answer

A)  45 
B)  55 
C)  65 
D)  75 
E)  85 
A)  45 
B)  55 
C)  65 
D)  75 
E)  85

Question 16

If your statement of income and expenditures shows a deficit,you may have:

Accepted Answer

A)  increased your debts. 
B)  increased your assets. 
C)  added to savings. 
D)  taken a cash loan on your insurance. 
E)  sold some securities. 
A)  increased your debts. 
B)  increased your assets. 
C)  added to savings. 
D)  taken a cash loan on your insurance. 
E)  sold some securities.

Question 17

Elena purchased a stamp collection for $5,000 thirty years ago.If it appreciated 8% annually,what is it worth today?

Accepted Answer

A)  $17,000 
B)  $36,400 
C)  $50,313 
D)  $123,023 
E)  $150,000 
A)  $17,000 
B)  $36,400 
C)  $50,313 
D)  $123,023 
E)  $150,000

Question 18

Russ buys his wife a valuable painting for $20,000.He purchases it using $15,000 from his savings and a $5,000 loan.How does this transaction affect Russ' balance sheet?

Accepted Answer

A)  His assets increase 
B)  His liabilities increase 
C)  His net worth stays the same 
D)  a and b only 
E)  a,b and c 
A)  His assets increase 
B)  His liabilities increase 
C)  His net worth stays the same 
D)  a and b only 
E)  a,b and c

Question 19

Jacque's total monthly loan payments are $1,020 while her gross income is $3,000 per month.What is her debt service ratio?

Accepted Answer

A)  34% 
B)  43% 
C)  50% 
D)  75% 
E)  82% 
A)  34% 
B)  43% 
C)  50% 
D)  75% 
E)  82%

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.
-A deficit on your income/expense statement will have [an | no] effect on your balance sheet.

Accepted Answer

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

Budgeting and record keeping are really the same activity.

The need for budget adjustments is indicated when:

_____ would be an example of a periodic expense.

In a budget,"fun money" is a budget category used for family members to spend as they like without having to account for how it is spent.

Budgets are:

Inflation is expected to be 3 percent in the coming year.If Mr.Gonza earned $45,000 this year,how much must he earn the following year just to keep up with inflation and maintain the balance between his income and his increasing expenditures?

The expenditure categories for your budget should be determined by:

When a cash surplus exists on your income and expenditure statements,you can:

Jewelry,furniture,and computers are examples of personal property.

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

Construct a balance sheet from the following information.Be sure the format is correct.

A charge made on your credit card becomes a liability as soon as the charge is incurred.

The level of the debt service ratio would indicate your ability to meet loan payments out of current income.

I should not record _____ on an income and expense statement for the period from January 1 to June 30.

Net worth is highest at about what age?

If your statement of income and expenditures shows a deficit,you may have:

Elena purchased a stamp collection for $5,000 thirty years ago.If it appreciated 8% annually,what is it worth today?

Russ buys his wife a valuable painting for $20,000.He purchases it using $15,000 from his savings and a $5,000 loan.How does this transaction affect Russ' balance sheet?

Jacque's total monthly loan payments are $1,020 while her gross income is $3,000 per month.What is her debt service ratio?

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 deficit on your income/expense statement will have [an | no] effect on your balance sheet.

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

Budgeting and record keeping are really the same activity.

The need for budget adjustments is indicated when:

_____ would be an example of a periodic expense.

In a budget,"fun money" is a budget category used for family members to spend as they like without having to account for how it is spent.

Budgets are:

Inflation is expected to be 3 percent in the coming year.If Mr.Gonza earned $45,000 this year,how much must he earn the following year just to keep up with inflation and maintain the balance between his income and his increasing expenditures?

The expenditure categories for your budget should be determined by:

When a cash surplus exists on your income and expenditure statements,you can:

Jewelry,furniture,and computers are examples of personal property.

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

Construct a balance sheet from the following information.Be sure the format is correct.

A charge made on your credit card becomes a liability as soon as the charge is incurred.

The level of the debt service ratio would indicate your ability to meet loan payments out of current income.

I should not record _____ on an income and expense statement for the period from January 1 to June 30.

Net worth is highest at about what age?

If your statement of income and expenditures shows a deficit,you may have:

Elena purchased a stamp collection for $5,000 thirty years ago.If it appreciated 8% annually,what is it worth today?

Russ buys his wife a valuable painting for $20,000.He purchases it using $15,000 from his savings and a $5,000 loan.How does this transaction affect Russ' balance sheet?

Jacque's total monthly loan payments are $1,020 while her gross income is $3,000 per month.What is her debt service ratio?

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 deficit on your income/expense statement will have [an | no] effect on your balance sheet.

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