Question 1

Warranties are commonly kept with ________ purchase and automobile records in a home file.

Accepted Answer

A)  investment
B)  insurance
C)  credit
D)  financial service
E)  consumerF) A) and B)
G) All of the above

Question 2

If a family planned to spend $400 for food during April but only spent $350,this difference would be referred to as a:

Accepted Answer

A)  surplus.
B)  deficit.
C)  fixed living expense.
D)  budget reduction.
E)  contribution to net worth.F) A) and E)
G) A) and B)

Question 3

A budget is a spending plan that outlines how you will spend available income.

Accepted Answer

A) True 
 B)False

Question 4

A common deduction from a person's paycheck is for:

Accepted Answer

A)  interest.
B)  Social Security taxes.
C)  rent.
D)  unemployment.
E)  current liabilities.F) A) and E)
G) A) and D)

Question 5

Which of these is an example of an opportunity cost?

Accepted Answer

A)  Spending for current living expenses increases the amount you have for saving and investing.
B)  Saving and investing for the future reduces the amount you can spend now.
C)  Buying on credit results in payments later and increases the amount of future income available.
D)  Using savings for purchases results in additional interest earnings.
E)  Comparison shopping can cost you money and time.F) B) and E)
G) A) and E)

Question 6

Jamie McFarland has determined that the value of her liquid assets is $4,500,the value of her real estate is $128,000,the value of her personal possessions is $62,000,and the value of her investment assets is $73,000.She has also determined the value of her current liabilities is $5,700 and the value of her long-term liabilities is $89,000.What is the total value of her debts?

Accepted Answer

A)  $267,500
B)  $94,700
C)  $162,000
D)  $205,500
E)  $172,800F) C) and E)
G) C) and D)

Question 7

Edward Boston wants to reduce his fixed expenses.Which action would be appropriate?

Accepted Answer

A)  Get a part-time job
B)  Eat more meals at home rather than in restaurants
C)  Find a place to live with a lower rent
D)  Save more money for the future
E)  Buy on credit items that might cost more laterF) A) and B)
G) B) and C)

Question 8

The current financial position of an individual or family is best presented with the use of a:

Accepted Answer

A)  budget.
B)  cash flow statement.
C)  balance sheet.
D)  bank statement.
E)  time value of money report.F) B) and D)
G) None of the above

Question 9

A person has $1,550 in liabilities,monthly savings of $200,and monthly gross income of $2,000.What is the person's savings ratio?

Accepted Answer

A)  0.77
B)  0.10
C)  2.35
D)  0.16
E)  12.90F) B) and C)
G) All of the above

Question 10

Catherine Jones has determined the following information about her own financial situation.Her checking account is worth $850 and her savings account is worth $1,200.She owns her own home that has a market value of $98,000.She has furniture and appliances worth $8,500 and a laptop worth $1,200.She has a car worth $9,700.She has recently purchased a mutual fund worth $5,500 and she has a retirement account worth $38,550.What is the value of her personal possessions?

Accepted Answer

A)  $2,050
B)  $98,000
C)  $19,400
D)  $44,050
E)  $171,900F) C) and D)
G) B) and C)

Question 11

Which of the following would most likely be classified as a current liability?

Accepted Answer

A)  Monthly balance due on a credit card
B)  Total amount of a mortgage
C)  Balance of an education loan
D)  Total amount of a five year home improvement loan
E)  Balance of a 60 month auto loanF) C) and D)
G) None of the above

Question 12

An example of a liquid asset is:

Accepted Answer

A)  furniture.
B)  jewelry.
C)  automobile.
D)  money in a checking account.
E)  home computer.F) A) and B)
G) B) and E)

Question 13

Which one of the following cash outflows should be listed first on a Cash Flow Statement?

Accepted Answer

A)  Variable expenses
B)  Food expenses
C)  Fixed expenses
D)  Utility expenses
E)  Recreation expensesF) A) and B)
G) A) and E)

Question 14

The 50/30/20 financial rule of thumb suggests that 30 percent of income be used for:

Accepted Answer

A)  necessities.
B)  wants.
C)  savings.
D)  car buying.
E)  education.F) A) and B)
G) A) and C)

Question 15

List the four phases of creating and implementing a budget and describe the details of each phase.

Accepted Answer

In Phase 1 (Assess Your Current Situatio...

Question 16

WiseBanyan is an innovative website that offers a free financial advisor that suggests and manages investments for your financial goals.

Accepted Answer

A) True 
 B)False

Question 17

Catherine Jones has determined the following information about her own financial situation.Her checking account is worth $500 and her savings account is worth $900.She owns her own home that has a market value of $98,000.She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,300.She has a car worth $12,500.She has recently purchased an annuity worth $5,500 and she has a retirement account worth $38,550.What is the value of her liquid assets?

Accepted Answer

A)  $1,400
B)  $98,000
C)  $27,800
D)  $44,050
E)  $171,900F) A) and B)
G) B) and E)

Question 18

In order to determine net worth,you would create what kind of report?

Accepted Answer

A)  Written budget
B)  Personal balance sheet
C)  Cash flow statement
D)  SWOT analysis
E)  Physical budgetF) B) and D)
G) A) and E)

Question 19

Which of the following would be organized as a personal and employment record in a home file?

Accepted Answer

A)  Budget
B)  Paycheck stub
C)  Social Security number
D)  Property tax bill
E)  LeaseF) A) and B)
G) C) and E)

Question 20

The Garcia family budgets $400 a month for food.Last month they spent $393,which creates a:

Accepted Answer

A)  budget surplus of $7.
B)  budget deficit of $7.
C)  budget surplus of $400.
D)  budget deficit of $393.
E)  balanced budget.F) B) and D)
G) A) and B)

Exam 3: Money Management Strategy: Financial Statements and Budgeting

Correct Answer
verified

WiseBanyan is an innovative website that offers a free financial advisor that suggests and manages investments for your financial goals.

Correct Answer
verified

Warranties are commonly kept with ________ purchase and automobile records in a home file.

Correct Answer
verified

Edward Boston wants to reduce his fixed expenses.Which action would be appropriate?

Correct Answer
verified

A common deduction from a person's paycheck is for:

Correct Answer
verified

The Garcia family budgets $400 a month for food.Last month they spent $393,which creates a:

Correct Answer
verified

An example of a liquid asset is:

Correct Answer
verified

Which of the following would most likely be classified as a current liability?

Correct Answer
verified

In order to determine net worth,you would create what kind of report?

Correct Answer
verified

If a family planned to spend $400 for food during April but only spent $350,this difference would be referred to as a:

Correct Answer
verified

A person has $1,550 in liabilities,monthly savings of $200,and monthly gross income of $2,000.What is the person's savings ratio?

Correct Answer
verified

The 50/30/20 financial rule of thumb suggests that 30 percent of income be used for:

Correct Answer
verified

Correct Answer
verified

Which one of the following cash outflows should be listed first on a Cash Flow Statement?

Correct Answer
verified

Which of the following would be organized as a personal and employment record in a home file?

Correct Answer
verified

Which of these is an example of an opportunity cost?

Correct Answer
verified

The current financial position of an individual or family is best presented with the use of a:

Correct Answer
verified

List the four phases of creating and implementing a budget and describe the details of each phase.

Correct Answer
verified
In Phase 1 (Assess Your Current Situatio...
View Answer

Correct Answer
verified

A budget is a spending plan that outlines how you will spend available income.

Correct Answer
verified

Exam 3: Money Management Strategy: Financial Statements and Budgeting

Correct AnswerverifiedShow Answer

WiseBanyan is an innovative website that offers a free financial advisor that suggests and manages investments for your financial goals.

Correct AnswerverifiedShow Answer

Warranties are commonly kept with ________ purchase and automobile records in a home file.

Correct AnswerverifiedShow Answer

Edward Boston wants to reduce his fixed expenses.Which action would be appropriate?

Correct AnswerverifiedShow Answer

A common deduction from a person's paycheck is for:

Correct AnswerverifiedShow Answer

The Garcia family budgets $400 a month for food.Last month they spent $393,which creates a:

Correct AnswerverifiedShow Answer

An example of a liquid asset is:

Correct AnswerverifiedShow Answer

Which of the following would most likely be classified as a current liability?

Correct AnswerverifiedShow Answer

In order to determine net worth,you would create what kind of report?

Correct AnswerverifiedShow Answer

If a family planned to spend $400 for food during April but only spent $350,this difference would be referred to as a:

Correct AnswerverifiedShow Answer

A person has $1,550 in liabilities,monthly savings of $200,and monthly gross income of $2,000.What is the person's savings ratio?

Correct AnswerverifiedShow Answer

The 50/30/20 financial rule of thumb suggests that 30 percent of income be used for:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which one of the following cash outflows should be listed first on a Cash Flow Statement?

Correct AnswerverifiedShow Answer

Which of the following would be organized as a personal and employment record in a home file?

Correct AnswerverifiedShow Answer

Which of these is an example of an opportunity cost?

Correct AnswerverifiedShow Answer

The current financial position of an individual or family is best presented with the use of a:

Correct AnswerverifiedShow Answer

List the four phases of creating and implementing a budget and describe the details of each phase.

Correct AnswerverifiedIn Phase 1 (Assess Your Current Situatio...View AnswerShow Answer

Correct AnswerverifiedShow Answer

A budget is a spending plan that outlines how you will spend available income.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In Phase 1 (Assess Your Current Situatio...
View Answer

Correct Answer
verified

Correct Answer
verified