Question 1

Warranties are commonly associated with ____________ purchases.

Accepted Answer

A)  investment
B)  insurance
C)  credit
D)  financial service
E)  consumerF) None of the above
G) C) and E)

Question 2

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 of a home improvement loan
E)  balance of an auto loanF) A) and B)
G) B) and C)

Question 3

A person's net worth is the difference between the value of the items owned and the amounts owed to others.

Accepted Answer

A) True 
 B)False

Question 4

An investment account that increases from $3,000 to $3,271 in one year is earning approximately ___ percent annual interest.

Accepted Answer

A)  3
B)  5
C)  7
D)  9
E)  11F) A) and C)
G) A) and B)

Question 5

A person has $1,250 in liabilities,monthly savings of $200,and monthly gross income of $2,500.What is the person's savings ratio?

Accepted Answer

A)  0.52
B)  0.08
C)  2.35
D)  0.16
E)  12.58F) C) and D)
G) A) and D)

Question 6

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) C) and D)
G) A) and E)

Question 7

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 D)
G) C) and D)

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 2-year certificate of deposit worth $5,500 and she has a retirement account worth $38,550.What is the value of her personal assets?

Accepted Answer

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

Question 9

When preparing her monthly budget,Marge Kent has a total spending allowance of $4,600.Each month she pays $1,200 in rent,$60 for cable television and Internet service,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)  33 percent
E)  40 percentF) A) and B)
G) D) and E)

Question 10

Which of the following would be considered a fixed expense?

Accepted Answer

A)  electric bill
B)  cell phone bill on a plan without unlimited minutes
C)  mortgage payment
D)  gas bill
E)  medical expensesF) B) and E)
G) B) and D)

Question 11

Items that you own with a monetary worth are referred to as:

Accepted Answer

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

Question 12

Payments that do not vary from month to month are ____________ expenses.

Accepted Answer

A)  fixed
B)  usage
C)  variable
D)  luxury
E)  outputF) B) and D)
G) C) and D)

Question 13

A family has a net worth of $156,000 and liabilities of $167,000,what is the amount of their assets?

Accepted Answer

A)  $11,000
B)  $156,000
C)  $167,000
D)  $323,000
E)  $452,000F) A) and E)
G) A) and D)

Question 14

Jeff Willis has a budget that he follows each month.He has used Microsoft's Money to help him determine what he wants to spend each month.At the end of the month,Money 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 the answersF) C) and D)
G) A) and D)

Question 15

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 16

Which of the following is (are) typically considered to be a personal financial record?

Accepted Answer

A)  birth certificate
B)  marriage license
C)  certificate of deposit
D)  social security card
E)  all of the answersF) A) and C)
G) B) and E)

Question 17

Which of the following financial documents would most likely be stored in a safe- deposit box?

Accepted Answer

A)  W-2 forms
B)  personal financial statements
C)  warranties
D)  savings certificates
E)  checking account statementsF) A) and D)
G) All of the above

Question 18

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 assets?

Accepted Answer

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

Question 19

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 this decision's ________ cost.

Accepted Answer

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

Question 20

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 2-year certificate of deposit 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) C) and D)
G) C) and E)

Exam 3: Money Management Strategy: Financial Statements and Budgeting

Items that you own with a monetary worth are referred to as:

Correct Answer
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Correct Answer
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A person's net worth is the difference between the value of the items owned and the amounts owed to others.

Correct Answer
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Correct Answer
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Warranties are commonly associated with ____________ purchases.

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

Correct Answer
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Payments that do not vary from month to month are ____________ expenses.

Correct Answer
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Which of the following financial documents would most likely be stored in a safe- deposit box?

Correct Answer
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Which of the following would be considered a fixed expense?

Correct Answer
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When preparing her monthly budget,Marge Kent has a total spending allowance of $4,600.Each month she pays $1,200 in rent,$60 for cable television and Internet service,and $240 for her auto loan.What percentage of her budget goes for these fixed expenses?

Correct Answer
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Correct Answer
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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
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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 this decision's ________ cost.

Correct Answer
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A person's net worth is computed by:

Correct Answer
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A family has a net worth of $156,000 and liabilities of $167,000,what is the amount of their assets?

Correct Answer
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Correct Answer
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Which of the following is (are) typically considered to be a personal financial record?

Correct Answer
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A person has $1,250 in liabilities,monthly savings of $200,and monthly gross income of $2,500.What is the person's savings ratio?

Correct Answer
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An investment account that increases from $3,000 to $3,271 in one year is earning approximately ___ percent annual interest.

Correct Answer
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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
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Exam 3: Money Management Strategy: Financial Statements and Budgeting

Items that you own with a monetary worth are referred to as:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A person's net worth is the difference between the value of the items owned and the amounts owed to others.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Warranties are commonly associated with ____________ purchases.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Payments that do not vary from month to month are ____________ expenses.

Correct AnswerverifiedShow Answer

Which of the following financial documents would most likely be stored in a safe- deposit box?

Correct AnswerverifiedShow Answer

Which of the following would be considered a fixed expense?

Correct AnswerverifiedShow Answer

When preparing her monthly budget,Marge Kent has a total spending allowance of $4,600.Each month she pays $1,200 in rent,$60 for cable television and Internet service,and $240 for her auto loan.What percentage of her budget goes for these fixed expenses?

Correct AnswerverifiedShow Answer

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

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 this decision's ________ cost.

Correct AnswerverifiedShow Answer

A person's net worth is computed by:

Correct AnswerverifiedShow Answer

A family has a net worth of $156,000 and liabilities of $167,000,what is the amount of their assets?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is (are) typically considered to be a personal financial record?

Correct AnswerverifiedShow Answer

A person has $1,250 in liabilities,monthly savings of $200,and monthly gross income of $2,500.What is the person's savings ratio?

Correct AnswerverifiedShow Answer

An investment account that increases from $3,000 to $3,271 in one year is earning approximately ___ percent annual interest.

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

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