Rent and insurance payments are examples of
A. variable expenses.
B. fixed expenses.
C. long-term liabilities.
D. short-term liabilities.
Matthew is concerned about his ability to save money regularlyand has prepared a budget. Which of the following budgetclassifications would be most appropriate for Matthew'sbudget?
A. Savings as a fixed expenditure
B. Saving whatever may be left over
C. Savings as a variable expenditure
Question 3
A successful financial plan includes
A. explicitly stated financial goals.
B. specified values that underlie the plan.
C. all of these.
D. logical and consistent financial strategies.
Question 4
A cash-flow statement is also known as a(n) ____ statement.
A. taxable income
B. net worth
C. income and expense
D. asset-and-liability
Question 5
A long-term goal is one that is projected to be acheived beyondhow much time?
A. five year
B. ten years
C. six months
D. one year
Question 6
A balance sheet includes ____, ____, and ____.
A. income; expenses; net worth
B. assets; expenses; liabilities
C. income; liabilities; net worth
D. assets; liabilities; net worth
Question 7
Disposable income is income
A. after all employer withholding including taxes.
B. minus fixed expenditures.
C. before taxes.
D. after all employer withholding except taxes.
Question 8
Which of the following would be classified as a long-termliability?
A. Education loan balance
B. Credit card debt
C. Bank card debt
D. All of these
Question 9
Stephen Scott's monthly pay stub indicates that his monthlygross income is $3,800. However, $800 is withheld for income andSocial Security taxes, $200 is withheld for his health anddisability insurance, and another $200 is contributed to hispension plan. How much is Stephen's disposable income?
A. $2,800
B. $3,000
C. $2,600
D. $3,800
Question 10
Which of the following provides information about a person'sfinancial condition at a specific point in time?
A. Federal tax return
B. Balance sheet
C. All of these
D. Income and expense statement
Question 11
The two most useful financial statements are ____ and____.
A. federal tax returns; income and expense statements
B. balance sheets; wills
C. cash-flow statements; balance sheets
D. wills; federal tax returns
Question 12
Which of the following is the best example of awell-stated financial goal?
A. Pay off your credit cards as soon as possible
B. Purchase a three-bedroom home in five years
C. Buy a $3,000 computer in 18 months
D. Buy a $2,000 stereo
Question 13
The first step in the budgeting process is
A. setting financial goals.
B. evaluating.
C. organizing.
D. decision making.
Question 13
The first step in the budgeting process is
A. setting financial goals.
B. evaluating.
C. organizing.
D. decision making.
Which of the following is a characteristic of a cash-flowstatement?
A. It shows if you were able to live within your income for theperiod covered.
B. All of these.
C. It covers a period of time, usually one month or one year.
D. The statement includes three sections: income, expenses, andsurplus (or deficit).
Question 15
The formula for calculating net worth is
A. income minus liabilities.
B. assets minus expenses.
C. income minus expenses.
D. assets minus liabilities.
Question 16
Food, clothing, and entertainment are examples of
A. long-term liabilities.
B. short-term liabilities.
C. fixed expenses.
D. variable expenses.
Question 17
To construct a balance sheet, you need to compile dollar valuesfor your assets and liabilities. Good sources from which to beginare
A. checkbook or savings account records.
B. all of these.
C. investments.
D. receipts of various payments.
Question 18
Discretionary income is used to pay for things like
A. housing.
B. vacations.
C. utilities.
D. food.
Question 19
A short-term goal is one that is projected to be acheived withinhow much time?
A. one month
B. three months
C. one year
D. five years
Question 20
The advantages of having organized financial records include
A. helping you take advantage of all available tax deductions.
B. all of these.
C. enabling you to review the results of financialtransactions.
D. helping you save money as well as make money.
Rent and insurance payments are examples of
A. | variable expenses. | |
B. | fixed expenses. | |
C. | long-term liabilities. | |
D. | short-term liabilities. |
Matthew is concerned about his ability to save money regularlyand has prepared a budget. Which of the following budgetclassifications would be most appropriate for Matthew'sbudget?
A. | Savings as a fixed expenditure | |
B. | Saving whatever may be left over | |
C. | Savings as a variable expenditure | |
Question 3
A successful financial plan includes
A. | explicitly stated financial goals. | |
B. | specified values that underlie the plan. | |
C. | all of these. | |
D. | logical and consistent financial strategies. |
Question 4
A cash-flow statement is also known as a(n) ____ statement.
A. | taxable income | |
B. | net worth | |
C. | income and expense | |
D. | asset-and-liability |
Question 5
A long-term goal is one that is projected to be acheived beyondhow much time?
A. | five year | |
B. | ten years | |
C. | six months | |
D. | one year |
Question 6
A balance sheet includes ____, ____, and ____.
A. | income; expenses; net worth | |
B. | assets; expenses; liabilities | |
C. | income; liabilities; net worth | |
D. | assets; liabilities; net worth |
Question 7
Disposable income is income
A. | after all employer withholding including taxes. | |
B. | minus fixed expenditures. | |
C. | before taxes. | |
D. | after all employer withholding except taxes. |
Question 8
Which of the following would be classified as a long-termliability?
A. | Education loan balance | |
B. | Credit card debt | |
C. | Bank card debt | |
D. | All of these |
Question 9
Stephen Scott's monthly pay stub indicates that his monthlygross income is $3,800. However, $800 is withheld for income andSocial Security taxes, $200 is withheld for his health anddisability insurance, and another $200 is contributed to hispension plan. How much is Stephen's disposable income?
A. | $2,800 | |
B. | $3,000 | |
C. | $2,600 | |
D. | $3,800 |
Question 10
Which of the following provides information about a person'sfinancial condition at a specific point in time?
A. | Federal tax return | |
B. | Balance sheet | |
C. | All of these | |
D. | Income and expense statement |
Question 11
The two most useful financial statements are ____ and____.
A. | federal tax returns; income and expense statements | |
B. | balance sheets; wills | |
C. | cash-flow statements; balance sheets | |
D. | wills; federal tax returns |
Question 12
Which of the following is the best example of awell-stated financial goal?
A. | Pay off your credit cards as soon as possible | |
B. | Purchase a three-bedroom home in five years | |
C. | Buy a $3,000 computer in 18 months | |
D. | Buy a $2,000 stereo |
Question 13
The first step in the budgeting process is
A. | setting financial goals. | |
B. | evaluating. | |
C. | organizing. | |
D. | decision making. |
Question 13
The first step in the budgeting process is
A. | setting financial goals. | |
B. | evaluating. | |
C. | organizing. | |
D. | decision making. |
Which of the following is a characteristic of a cash-flowstatement?
A. | It shows if you were able to live within your income for theperiod covered. | |
B. | All of these. | |
C. | It covers a period of time, usually one month or one year. | |
D. | The statement includes three sections: income, expenses, andsurplus (or deficit). |
Question 15
The formula for calculating net worth is
A. | income minus liabilities. | |
B. | assets minus expenses. | |
C. | income minus expenses. | |
D. | assets minus liabilities. |
Question 16
Food, clothing, and entertainment are examples of
A. | long-term liabilities. | |
B. | short-term liabilities. | |
C. | fixed expenses. | |
D. | variable expenses. |
Question 17
To construct a balance sheet, you need to compile dollar valuesfor your assets and liabilities. Good sources from which to beginare
A. | checkbook or savings account records. | |
B. | all of these. | |
C. | investments. | |
D. | receipts of various payments. |
Question 18
Discretionary income is used to pay for things like
A. | housing. | |
B. | vacations. | |
C. | utilities. | |
D. | food. |
Question 19
A short-term goal is one that is projected to be acheived withinhow much time?
A. | one month | |
B. | three months | |
C. | one year | |
D. | five years |
Question 20
The advantages of having organized financial records include
A. | helping you take advantage of all available tax deductions. | |
B. | all of these. | |
C. | enabling you to review the results of financialtransactions. | |
D. | helping you save money as well as make money. |