Question 1

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) A) and D)
G) A) and C) B

Question 2

A budget is a specific plan of how a person or family will spend their money.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following would be considered a long-term liability?

Accepted Answer

A)  charge account payment
B)  mortgage
C)  six month personal loan
D)  amount due for taxes
E)  amount due on a credit cardF) D) and E)
G) A) and B)

Question 4

To determine a person's solvency,which financial document should be consulted?

Accepted Answer

A)  cash flow statement
B)  budget
C)  debt consolidation statement
D)  balance sheet
E)  credit reportF) A) and E)
G) C) and D)

Question 5

Liabilities are amounts representing:

Accepted Answer

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

Question 6

A person's net worth would increase as a result of:

Accepted Answer

A)  reduced amounts owed to others.
B)  reduced earnings.
C)  increased spending for current living expenses.
D)  decreased value of personal possessions.
E)  decreased value of investments.F) A) and B)
G) C) and E)

Question 7

Jennifer Rodrick uses a computer to help her record her spending each month.She updates her records weekly.This would be an example of:

Accepted Answer

A)  money management.
B)  an opportunity cost.
C)  a balance sheet.
D)  creative accounting.
E)  electronic analysis.F) A) and D)
G) All of the above

Question 8

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 D)
G) A) and E)

Question 9

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 investment assets?

Accepted Answer

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

Question 10

When one money management decision is made,an alternative must be given up.

Accepted Answer

A) True 
 B)False

Question 11

Jamie McFarland has determined that the value of her liquid assets is $4,500,the value of her real estate is $108,000,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 $9,500 and the value of her long term liabilities is $68,000.What is Jamie's net worth?

Accepted Answer

A)  $267,500
B)  $105,500
C)  $170,000
D)  $205,500
E)  None of the aboveF) A) and B)
G) C) and E)

Question 12

A personal balance sheet reports your income and expenses.

Accepted Answer

A) True 
 B)False

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)  personal computer
D)  best friend's house
E)  None of the aboveF) B) and C)
G) None of the above

Question 14

A budget deficit would result when a person's or family's:

Accepted Answer

A)  actual expenses are less than planned expenses.
B)  actual expenses are greater than planned expenses.
C)  actual expenses equal planned expenses.
D)  assets exceed liabilities.
E)  net worth decreases.F) C) and D)
G) B) and D)

Question 15

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

Question 16

Current liabilities differ from long-term liabilities based on:

Accepted Answer

A)  the amount owed.
B)  the financial situation of the creditor.
C)  the interest rate charged.
D)  when the debt is due.
E)  current economic conditions.F) A) and B)
G) A) and C)

Question 17

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

Accepted Answer

A)  budget
B)  passbook
C)  Social Security card
D)  property tax bill
E)  leaseF) A) and B)
G) C) and D)

Question 18

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

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

What types of financial records and documents should be kept in a safe deposit box?

Accepted Answer

Answers will vary

Exam 3: Money Management Strategy: Financial Statements and Budgeting

Liquid assets refer to:

Correct Answer
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B

A budget is a specific plan of how a person or family will spend their money.

Correct Answer
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Which of the following would be considered a long-term liability?

Correct Answer
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To determine a person's solvency,which financial document should be consulted?

Correct Answer
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Liabilities are amounts representing:

Correct Answer
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A person's net worth would increase as a result of:

Correct Answer
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Jennifer Rodrick uses a computer to help her record her spending each month.She updates her records weekly.This would be an example of:

Correct Answer
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Changes in the cost of living are:

Correct Answer
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Correct Answer
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D

When one money management decision is made,an alternative must be given up.

Correct Answer
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Correct Answer
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A personal balance sheet reports your income and expenses.

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

A budget deficit would result when a person's or family's:

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

Current liabilities differ from long-term liabilities based on:

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

What types of financial records and documents should be kept in a safe deposit box?

Correct Answer
verified
Answers will vary

Exam 3: Money Management Strategy: Financial Statements and Budgeting

Liquid assets refer to:

Correct AnswerverifiedB

A budget is a specific plan of how a person or family will spend their money.

Correct AnswerverifiedShow Answer

Which of the following would be considered a long-term liability?

Correct AnswerverifiedShow Answer

To determine a person's solvency,which financial document should be consulted?

Correct AnswerverifiedShow Answer

Liabilities are amounts representing:

Correct AnswerverifiedShow Answer

A person's net worth would increase as a result of:

Correct AnswerverifiedShow Answer

Jennifer Rodrick uses a computer to help her record her spending each month.She updates her records weekly.This would be an example of:

Correct AnswerverifiedShow Answer

Changes in the cost of living are:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedD

When one money management decision is made,an alternative must be given up.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A personal balance sheet reports your income and expenses.

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

A budget deficit would result when a person's or family's:

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

Current liabilities differ from long-term liabilities based on:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What types of financial records and documents should be kept in a safe deposit box?

Correct AnswerverifiedAnswers will vary

Correct Answer
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B

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D

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Answers will vary