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) C) and D)
G) B) and E)

Question 2

Insolvency is a result of having more liabilities than assets.

Accepted Answer

A) True 
 B)False

Question 3

Your Aunt gives you some money for your birthday and you decide to put it into your savings account instead of spending it.The trade-off of not being able to spend the money now is an example of ________ cost.

Accepted Answer

A)  fixed
B)  opportunity
C)  variable
D)  transaction
E)  totalF) C) and D)
G) B) and E)

Question 4

A person's net worth is computed by:

Accepted Answer

A)  adding assets and liabilities.
B)  deducting current living expenses from total assets.
C)  subtracting total liabilities from total assets.
D)  subtracting assets from current liabilities.
E)  adding liabilities and budgeted expenses.F) A) and D)
G) B) and C)

Question 5

Liquid assets refer to:

Accepted Answer

A)  amounts that must be paid soon.
B)  cash and other items that are easily converted to cash.
C)  total income available to a family for spending.
D)  the value of investments.
E)  amounts on which taxes must be paid.F) All of the above
G) A) and B)

Question 6

Karen Price has created a financial statement for herself that lists all of the assets she owns as well as the debts she owes.This would be an example of:

Accepted Answer

A)  money management.
B)  opportunity cost analysis.
C)  a balance sheet.
D)  a liquidation exercise.
E)  a budget variance.F) All of the above
G) B) and D)

Question 7

For many years,the United States has ranked highest among industrial nations in savings rate.

Accepted Answer

A) True 
 B)False

Question 8

Ben Chase needs to pay off some of his debts over the next few months.Which item on his balance sheet would help him decide what amounts are due in the near future?

Accepted Answer

A)  Budget variance
B)  Investment assets
C)  Long-term liabilities
D)  Current assets
E)  Current liabilitiesF) A) and E)
G) A) and D)

Question 9

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) A) and E)
G) B) and D)

Question 10

Total earnings of a person minus the deductions for taxes and other items is called:

Accepted Answer

A)  budgeted income.
B)  gross pay.
C)  net worth.
D)  total revenue.
E)  take-home pay.F) A) and E)
G) All of the above

Question 11

Financial payments that do not vary from month to month are referred to as variable expenses.

Accepted Answer

A) True 
 B)False

Question 12

Money management activities refer to long-term investment decisions.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following would be an example of a personal and employment record?

Accepted Answer

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

Question 14

Opportunity costs are only associated with money management decisions involving long-term financial security.

Accepted Answer

A) True 
 B)False

Question 15

Kathy Stumbaugh has determined that the value of her assets is $46,000 and the value of her debts is $32,000.The difference between these two is $14,000.The $14,000 could be referred to as her:

Accepted Answer

A)  nest egg.
B)  total assets.
C)  adjusted assets.
D)  debt equity.
E)  net worth.F) A) and E)
G) A) and C)

Question 16

Which of the following would be considered a fixed expense?

Accepted Answer

A)  Electric bill
B)  Food at home
C)  Rent
D)  Donations
E)  Medical expensesF) B) and C)
G) D) and E)

Question 17

Jeff Willis has a budget that he follows each month.He has used spreadsheet software to help him determine what he wants to spend each month.At the end of the month,the spreadsheet software automatically compares what he budgeted with what he spent.Jeff can also graph these results if he wants to.What type of budget has Jeff created?

Accepted Answer

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

Question 18

About what percent of Americans have no emergency fund?

Accepted Answer

A)  5
B)  10
C)  25
D)  40
E)  50F) C) and E)
G) A) and B)

Question 19

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 a student loan
D)  Total amount of a home improvement loan
E)  None of theseF) A) and C)
G) All of the above

Question 20

If a family planned to spend $370 for food during March but only spent $348,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 B)
G) A) and C)

Exam 3: Money Management Strategy: Financial Statements and Budgeting

Total earnings of a person minus the deductions for taxes and other items is called:

Correct Answer
verified

Which of the following would be an example of a personal and employment record?

Correct Answer
verified

Kathy Stumbaugh has determined that the value of her assets is $46,000 and the value of her debts is $32,000.The difference between these two is $14,000.The $14,000 could be referred to as her:

Correct Answer
verified

Your Aunt gives you some money for your birthday and you decide to put it into your savings account instead of spending it.The trade-off of not being able to spend the money now is an example of ________ cost.

Correct Answer
verified

Correct Answer
verified

A person's net worth is computed by:

Correct Answer
verified

Ben Chase needs to pay off some of his debts over the next few months.Which item on his balance sheet would help him decide what amounts are due in the near future?

Correct Answer
verified

Opportunity costs are only associated with money management decisions involving long-term financial security.

Correct Answer
verified

Which of the following would be considered a fixed expense?

Correct Answer
verified

For many years,the United States has ranked highest among industrial nations in savings rate.

Correct Answer
verified

About what percent of Americans have no emergency fund?

Correct Answer
verified

Insolvency is a result of having more liabilities than assets.

Correct Answer
verified

If a family planned to spend $370 for food during March but only spent $348,this difference would be referred to as a:

Correct Answer
verified

Liquid assets refer to:

Correct Answer
verified

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

Correct Answer
verified

Financial payments that do not vary from month to month are referred to as variable expenses.

Correct Answer
verified

Money management activities refer to long-term investment decisions.

Correct Answer
verified

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

Correct Answer
verified

Karen Price has created a financial statement for herself that lists all of the assets she owns as well as the debts she owes.This would be an example of:

Correct Answer
verified

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

Total earnings of a person minus the deductions for taxes and other items is called:

Correct AnswerverifiedShow Answer

Which of the following would be an example of a personal and employment record?

Correct AnswerverifiedShow Answer

Kathy Stumbaugh has determined that the value of her assets is $46,000 and the value of her debts is $32,000.The difference between these two is $14,000.The $14,000 could be referred to as her:

Correct AnswerverifiedShow Answer

Your Aunt gives you some money for your birthday and you decide to put it into your savings account instead of spending it.The trade-off of not being able to spend the money now is an example of ________ cost.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A person's net worth is computed by:

Correct AnswerverifiedShow Answer

Ben Chase needs to pay off some of his debts over the next few months.Which item on his balance sheet would help him decide what amounts are due in the near future?

Correct AnswerverifiedShow Answer

Opportunity costs are only associated with money management decisions involving long-term financial security.

Correct AnswerverifiedShow Answer

Which of the following would be considered a fixed expense?

Correct AnswerverifiedShow Answer

For many years,the United States has ranked highest among industrial nations in savings rate.

Correct AnswerverifiedShow Answer

About what percent of Americans have no emergency fund?

Correct AnswerverifiedShow Answer

Insolvency is a result of having more liabilities than assets.

Correct AnswerverifiedShow Answer

If a family planned to spend $370 for food during March but only spent $348,this difference would be referred to as a:

Correct AnswerverifiedShow Answer

Liquid assets refer to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Financial payments that do not vary from month to month are referred to as variable expenses.

Correct AnswerverifiedShow Answer

Money management activities refer to long-term investment decisions.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Karen Price has created a financial statement for herself that lists all of the assets she owns as well as the debts she owes.This would be an example of:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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