Question 1

Which one of the following presents a summary of cash receipts and payments for a period of time?

Accepted Answer

A)  Balance sheet
B)  Credit card statement
C)  Investment summary
D)  Cash flow statement
E)  Asset reportF) A) and D)
G) A) and B)

Question 2

Which of the following can be minimized through budgeting?

Accepted Answer

A)  Overusing credit
B)  Lacking a regular savings program
C)  Failing to ensure future financial security
D)  All of these
E)  None of theseF) B) and E)
G) A) and E)

Question 3

Jamie McFarland has determined that the value of her liquid assets is $5,400,the value of her real estate is $182,000,the value of her personal possessions is $26,000,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 assets?

Accepted Answer

A)  $286,400
B)  $182,000
C)  $73,000
D)  $26,000
E)  $7,500F) C) and D)
G) B) and D)

Question 4

Furniture,jewelry,and an automobile are examples of liquid assets.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  Home file
B)  Safe deposit box
C)  Personal computer
D)  Best friend's house
E)  No storage neededF) B) and E)
G) A) and D)

Question 6

Liabilities are amounts representing:

Accepted Answer

A)  debts owed now.
B)  items of value.
C)  living expenses.
D)  taxable income.
E)  current assets.F) A) and E)
G) B) and D)

Question 7

During the past month,Jennifer Johnson had income of $3,500.During the month,her net worth declined by $300.If no other financial activities occurred,this means Jennifer's payments for the month were:

Accepted Answer

A)  $3,800.
B)  $3,500.
C)  $3,200.
D)  $300.
E)  $0.F) B) and D)
G) C) and D)

Question 8

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

Accepted Answer

Opportunity costs are the trade-offs tha...

Question 9

Changes in the cost of living:

Accepted Answer

A)  vary depending on where you live.
B)  are the same for different locations.
C)  are constant from month to month.
D)  are the same for all goods and services.
E)  are not a factor when preparing a budget.F) B) and D)
G) B) and C)

Question 10

Jonathan Winters has developed a budget that he follows each month.Jonathan has an envelope for each type of expenditure.After he cashes his paycheck,he puts the amount of cash in each envelope that he plans to spend on that category each month.What type of budget has Jonathan created?

Accepted Answer

A)  Mental budget
B)  Physical budget
C)  Written budget
D)  Computerized budget
E)  Cloud budgetF) A) and C)
G) None of the above

Question 11

Discretionary income is:

Accepted Answer

A)  a person's earnings after deducting taxes and other items.
B)  referred to as net pay.
C)  referred to as disposable income.
D)  money left over after paying for housing,food,and other necessities.
E)  referred to as take-home pay.F) C) and D)
G) A) and E)

Question 12

Discretionary income is money left over after paying for housing,food,and other necessities.

Accepted Answer

A) True 
 B)False

Question 13

When preparing her monthly budget,Maria Kent has projected income of $3,700.Each month she pays $1,200 in rent,$42 for life insurance,and $240 for her auto loan.What percentage of her budget goes for these fixed expenses?

Accepted Answer

A)  6 percent
B)  12 percent
C)  27 percent
D)  40 percent
E)  60 percentF) All of the above
G) A) and C)

Question 14

A family has a net worth of $165,000 and liabilities of $176,000,what is the amount of their assets?

Accepted Answer

A)  $11,000
B)  $165,000
C)  $176,000
D)  $341,000
E)  $506,000F) B) and D)
G) A) and E)

Question 15

Amy Farmer has developed a budget that she follows each month.She went to the office supply store and purchased a spiral notebook.Each month she writes in what she plans to spend in the various categories.At the end of the month,she writes in the amount that she actually spent in each of these categories and compares this with the budgeted amounts.What type of budget has Amy created?

Accepted Answer

A)  Mental budget
B)  Physical budget
C)  Written budget
D)  Computerized budget
E)  None of theseF) A) and B)
G) A) and C)

Question 16

Which one of the following illustrates an insolvent situation?

Accepted Answer

A)  Assets $56,000; annual expenses $60,000
B)  Assets $78,000; net worth $22,000
C)  Liabilities $45,000; net worth $6,000
D)  Assets $40,000; liabilities $60,000
E)  Annual cash inflows $45,000; liabilities $50,000F) A) and C)
G) B) and C)

Question 17

Which category of a home file includes stock and bond purchase documents?

Accepted Answer

A)  Investment records
B)  Insurance records
C)  Estate planning records
D)  Tax records
E)  Consumer purchase recordsF) C) and D)
G) A) and E)

Question 18

The value of items owned minus the amounts owed to others equals:

Accepted Answer

A)  net assets.
B)  net worth.
C)  total liabilities.
D)  total income.
E)  budgeted expenses.F) A) and D)
G) None of the above

Question 19

Characteristics of successful budgets include being:

Accepted Answer

A)  well planned.
B)  realistic.
C)  flexible.
D)  clearly communicated.
E)  All of theseF) A) and B)
G) B) and E)

Question 20

Common long-term liabilities include:

Accepted Answer

A)  Auto loans
B)  Medical bills
C)  Insurance premiums
D)  Charge accounts
E)  Cash loansF) A) and E)
G) B) and D)

Exam 3: Money Management Strategy: Financial Statements and Budgeting

Which category of a home file includes stock and bond purchase documents?

Correct Answer
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Correct Answer
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Jeremy Allison needs to store the title to his car and his military papers.Where is the most appropriate place for Jerry to store this information?

Correct Answer
verified

The value of items owned minus the amounts owed to others equals:

Correct Answer
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Which one of the following illustrates an insolvent situation?

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

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

Furniture,jewelry,and an automobile are examples of liquid assets.

Correct Answer
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Common long-term liabilities include:

Correct Answer
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Jonathan Winters has developed a budget that he follows each month.Jonathan has an envelope for each type of expenditure.After he cashes his paycheck,he puts the amount of cash in each envelope that he plans to spend on that category each month.What type of budget has Jonathan created?

Correct Answer
verified

A family has a net worth of $165,000 and liabilities of $176,000,what is the amount of their assets?

Correct Answer
verified

Characteristics of successful budgets include being:

Correct Answer
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When preparing her monthly budget,Maria Kent has projected income of $3,700.Each month she pays $1,200 in rent,$42 for life insurance,and $240 for her auto loan.What percentage of her budget goes for these fixed expenses?

Correct Answer
verified

Discretionary income is money left over after paying for housing,food,and other necessities.

Correct Answer
verified

Which of the following can be minimized through budgeting?

Correct Answer
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Discretionary income is:

Correct Answer
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During the past month,Jennifer Johnson had income of $3,500.During the month,her net worth declined by $300.If no other financial activities occurred,this means Jennifer's payments for the month were:

Correct Answer
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Correct Answer
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Changes in the cost of living:

Correct Answer
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Liabilities are amounts representing:

Correct Answer
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Which one of the following presents a summary of cash receipts and payments for a period of time?

Correct Answer
verified

Exam 3: Money Management Strategy: Financial Statements and Budgeting

Which category of a home file includes stock and bond purchase documents?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The value of items owned minus the amounts owed to others equals:

Correct AnswerverifiedShow Answer

Which one of the following illustrates an insolvent situation?

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

Furniture,jewelry,and an automobile are examples of liquid assets.

Correct AnswerverifiedShow Answer

Common long-term liabilities include:

Correct AnswerverifiedShow Answer

Jonathan Winters has developed a budget that he follows each month.Jonathan has an envelope for each type of expenditure.After he cashes his paycheck,he puts the amount of cash in each envelope that he plans to spend on that category each month.What type of budget has Jonathan created?

Correct AnswerverifiedShow Answer

A family has a net worth of $165,000 and liabilities of $176,000,what is the amount of their assets?

Correct AnswerverifiedShow Answer

Characteristics of successful budgets include being:

Correct AnswerverifiedShow Answer

When preparing her monthly budget,Maria Kent has projected income of $3,700.Each month she pays $1,200 in rent,$42 for life insurance,and $240 for her auto loan.What percentage of her budget goes for these fixed expenses?

Correct AnswerverifiedShow Answer

Discretionary income is money left over after paying for housing,food,and other necessities.

Correct AnswerverifiedShow Answer

Which of the following can be minimized through budgeting?

Correct AnswerverifiedShow Answer

Discretionary income is:

Correct AnswerverifiedShow Answer

During the past month,Jennifer Johnson had income of $3,500.During the month,her net worth declined by $300.If no other financial activities occurred,this means Jennifer's payments for the month were:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Changes in the cost of living:

Correct AnswerverifiedShow Answer

Liabilities are amounts representing:

Correct AnswerverifiedShow Answer

Which one of the following presents a summary of cash receipts and payments for a period of time?

Correct AnswerverifiedShow Answer

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

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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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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