Question 1

Changes in the cost of living are:

Accepted Answer

A)  different in various geographic areas.
B)  the same for different locations.
C)  constant from month to month.
D)  the same for all goods and services.
E)  not a factor when preparing a budget.F) A) and E)
G) B) and D)

Question 2

For January,Bethany DeWeese had cash inflows of $4,200 and cash outflows of $4,750,resulting in a:

Accepted Answer

A)  balanced budget.
B)  surplus of $550.
C)  deficit of $550.
D)  surplus of $8,950.
E)  deficit of $4,750.F) A) and B)
G) A) and C)

Question 3

A cash flow statement reports a person's or a family's:

Accepted Answer

A)  net worth.
B)  cash receipts and payments.
C)  plan for spending.
D)  value of investments.
E)  balance of savings.F) A) and D)
G) B) and E)

Question 4

The debt ratio is calculated as:

Accepted Answer

A)  Net worth divided by liabilities.
B)  Monthly credit payments divided by take-home pay.
C)  Liabilities divided by net worth.
D)  Liquid assets divided by current liabilities.
E)  Liquid assets divided by monthly expenses.F) A) and B)
G) C) and E)

Question 5

Cash and other tangible property (with a monetary value) that you own are referred to as:

Accepted Answer

A)  liabilities.
B)  variable expenses.
C)  net worth.
D)  income.
E)  assets.F) All of the above
G) B) and C)

Question 6

The value of the home you own would be included in which section of your balance sheet?

Accepted Answer

A)  Liquid assets
B)  Investment assets
C)  Real estate assets
D)  Personal possessions
E)  Current liabilitiesF) B) and D)
G) B) and E)

Question 7

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 $7,500 and the value of her long term liabilities is $98,000.What is the total value of her debts?

Accepted Answer

A)  $267,500
B)  $105,500
C)  $162,000
D)  $205,500
E)  None of theseF) D) and E)
G) A) and E)

Question 8

Katherine Kocher 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 $12,000 and a home computer and laptop worth $3,300.She has a car worth $12,500.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 real estate assets?

Accepted Answer

A)  $2,050
B)  $98,000
C)  $27,800
D)  $44,050
E)  $171,900F) A) and B)
G) A) and D)

Question 9

Improvements in a person's financial position are the result of:

Accepted Answer

A)  increased liabilities.
B)  reductions in earnings.
C)  increased savings and investments.
D)  increased purchases on credit.
E)  lower amounts deposited in savings.F) A) and B)
G) A) and C)

Question 10

Which of the following are considered to be personal financial statements?

Accepted Answer

A)  Budget and credit card statements
B)  Balance sheet and cash flow statement
C)  Checkbook and budget
D)  Tax returns
E)  Bank statement and savings statementF) B) and C)
G) A) and C)

Question 11

One of the main purposes of personal financial statements is to:

Accepted Answer

A)  Report your future financial position relating to the value of items owned and owed.
B)  Measure your progress toward financial goals.
C)  Maintain information about your professional work activities.
D)  Provide data you can use when rating a restaurant.
E)  None of these.F) B) and D)
G) B) and C)

Question 12

Ed Bostrom 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 C)
G) All of the above

Question 13

Sean Carter needs to store monthly statements from his bank,his credit card company and from his savings and loan.Where is the most appropriate place for Sean to store this information?

Accepted Answer

A)  Home file cabinet
B)  Safe deposit box
C)  File at work
D)  Best friend's house
E)  None of theseF) B) and E)
G) A) and E)

Question 14

Most income tax documents should be kept for _____ year(s) .

Accepted Answer

A)  0
B)  1
C)  3
D)  5
E)  7F) A) and D)
G) B) and D)

Question 15

Common long term liabilities include:

Accepted Answer

A)  Educational loans
B)  Medical bills
C)  Insurance premiums
D)  Charge accounts
E)  All of theseF) None of the above
G) C) and E)

Question 16

Jerry Allison needs to store the title to his car and his house.Where is the most appropriate place for Jerry to store this information?

Accepted Answer

A)  Home file cabinet
B)  Safe deposit box
C)  Personal computer
D)  Best friend's house
E)  None of theseF) C) and E)
G) A) and B)

Question 17

A personal balance sheet presents:

Accepted Answer

A)  amounts budgeted for spending.
B)  income and expenses for a period of time.
C)  earnings on savings and investments.
D)  items owned and amounts owed.
E)  family financial goals.F) B) and D)
G) A) and B)

Question 18

Explain why opportunity cost is an important concept in money management.

Accepted Answer

Opportunity costs are the trade-offs tha...

Question 19

Opportunity costs refer to:

Accepted Answer

A)  current spending habits.
B)  changing economic conditions that affect a person's cost of living.
C)  storage facilities to make financial documents easily available.
D)  trade-offs associated with financial decisions.
E)  avoiding the use of consumer credit.F) A) and E)
G) None of the above

Question 20

Patricia McDonald 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 $12,000 and a home computer and laptop worth $3,300.She has a car worth $12,500 and owes $7,800 on her auto loan.She has also purchased some stock worth $5,500 and she has a retirement account worth $38,550.What is the total value of her assets?

Accepted Answer

A)  $2,050
B)  $98,000
C)  $27,800
D)  $44,050
E)  $171,900F) C) and E)
G) B) and D)

Exam 3: Money Management Strategy: Financial Statements and Budgeting

Jerry Allison needs to store the title to his car and his house.Where is the most appropriate place for Jerry to store this information?

Correct Answer
verified

Changes in the cost of living are:

Correct Answer
verified

The value of the home you own would be included in which section of your balance sheet?

Correct Answer
verified

Improvements in a person's financial position are the result of:

Correct Answer
verified

Opportunity costs refer to:

Correct Answer
verified

Common long term liabilities include:

Correct Answer
verified

Most income tax documents should be kept for _____ year(s) .

Correct Answer
verified

Correct Answer
verified

Explain why opportunity cost is an important concept in money management.

Correct Answer
verified
Opportunity costs are the trade-offs tha...
View Answer

Correct Answer
verified

Which of the following are considered to be personal financial statements?

Correct Answer
verified

The debt ratio is calculated as:

Correct Answer
verified

For January,Bethany DeWeese had cash inflows of $4,200 and cash outflows of $4,750,resulting in a:

Correct Answer
verified

One of the main purposes of personal financial statements is to:

Correct Answer
verified

Cash and other tangible property (with a monetary value) that you own are referred to as:

Correct Answer
verified

A cash flow statement reports a person's or a family's:

Correct Answer
verified

A personal balance sheet presents:

Correct Answer
verified

Ed Bostrom wants to reduce his fixed expenses.Which action would be appropriate?

Correct Answer
verified

Sean Carter needs to store monthly statements from his bank,his credit card company and from his savings and loan.Where is the most appropriate place for Sean to store this information?

Correct Answer
verified

Correct Answer
verified

Exam 3: Money Management Strategy: Financial Statements and Budgeting

Jerry Allison needs to store the title to his car and his house.Where is the most appropriate place for Jerry to store this information?

Correct AnswerverifiedShow Answer

Changes in the cost of living are:

Correct AnswerverifiedShow Answer

The value of the home you own would be included in which section of your balance sheet?

Correct AnswerverifiedShow Answer

Improvements in a person's financial position are the result of:

Correct AnswerverifiedShow Answer

Opportunity costs refer to:

Correct AnswerverifiedShow Answer

Common long term liabilities include:

Correct AnswerverifiedShow Answer

Most income tax documents should be kept for _____ year(s) .

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Explain why opportunity cost is an important concept in money management.

Correct AnswerverifiedOpportunity costs are the trade-offs tha...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Which of the following are considered to be personal financial statements?

Correct AnswerverifiedShow Answer

The debt ratio is calculated as:

Correct AnswerverifiedShow Answer

For January,Bethany DeWeese had cash inflows of $4,200 and cash outflows of $4,750,resulting in a:

Correct AnswerverifiedShow Answer

One of the main purposes of personal financial statements is to:

Correct AnswerverifiedShow Answer

Cash and other tangible property (with a monetary value) that you own are referred to as:

Correct AnswerverifiedShow Answer

A cash flow statement reports a person's or a family's:

Correct AnswerverifiedShow Answer

A personal balance sheet presents:

Correct AnswerverifiedShow Answer

Ed Bostrom wants to reduce his fixed expenses.Which action would be appropriate?

Correct AnswerverifiedShow Answer

Sean Carter needs to store monthly statements from his bank,his credit card company and from his savings and loan.Where is the most appropriate place for Sean to store this information?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Opportunity costs are the trade-offs tha...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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