FINC 298 Chap 002 Practice Quiz
Transcript of FINC 298 Chap 002 Practice Quiz
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Chapter 02 - Money Management Skills
". (p. 4+) # !udget is a record of ho$ a person or family has spent their money.FALSE
# !udget is a spending plan% looking to the future.
Bloom's: ompre ension Difficulty: &edium Learning !"ecti#e: $%opic: *inancial records
&. (p. 4+) 'rograms are availa!le to help lo$-income older or disa!led people $ho havedifficulty !udgeting.TRUE
(ased on the )*id +ou ,no$) section.
Bloom's: Knowledge Difficulty: Easy Learning !"ecti#e: $%opic: ,,- &oney &anagement rogram
. (p. 4 ) n an organi ed system% credit card records !elong in a safe deposit !o/.FALSE
See /hi!it 2-1
Bloom's: Knowledge Difficulty: Easy Learning !"ecti#e: $%opic: *inancial records
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. (p. 4 ) n an organi ed system% !irth and marriage certificates !elong in a safe deposit !o/.TRUE
See /hi!it 2-1
Bloom's: Knowledge Difficulty: Easy Learning !"ecti#e: $%opic: *inancial records
. (p. 4 ) n an organi ed system% a $ill !elongs in a home file.TRUE
See /hi!it 2-1
Bloom's: Knowledge Difficulty: &edium Learning !"ecti#e: $%opic: *inancial records
. (p. 4/) 4inancial records that may need to !e referred to on a regular !asis should !e kept in asafe-deposit !o/.FALSE
These should !e kept in a home file.
Bloom's: Knowledge Difficulty: Easy Learning !"ecti#e: $%opic: *inancial records
10. (p. 4 ) n an organi ed system% an annual stock investment statement !elongs in a safedeposit !o/.
TRUE
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11. (p. 4 ) 5ecords related to ta/ returns should !e saved for ten years.FALSE
These should !e saved for seven years.
Bloom's: Knowledge Difficulty: Easy Learning !"ecti#e: $%opic: *inancial records
12. (p. 4 ) 6ills and Social Security data should !e kept for up to ten years.FALSE
These should !e kept permanently.
Bloom's: Knowledge Difficulty: Easy Learning !"ecti#e: $%opic: *inancial records
13. (p. 40) The t$o primary personal financial statements include the personal !alance sheet anda credit card payoff statement.FALSE
The statements include the personal !alance sheet and the cash flo$ statement.
Bloom's: Knowledge Difficulty: &edium Learning !"ecti#e: 1%opic: ersonal financial statements
1". (p. 40) The current financial position of an individual or family is a common starting pointfor financial planning.
TRUE
Bloom's: ompre ension Difficulty: Easy Learning !"ecti#e: 1%opic: ersonal !alance s eet
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Chapter 02 - Money Management Skills
1&. (p. 40) 7et $orth is the amount o$ed to others.FALSE
8ia!ilities are amounts o$ed to others.
Bloom's: Knowledge Difficulty: Easy Learning !"ecti#e: 1%opic: Determining amounts owed
1 . (p. 5$) Current lia!ilities are the de!ts you must pay $ithin a short time.TRUE
Bloom's: Knowledge Difficulty: Easy Learning !"ecti#e: 1%opic: Determining amounts owed
1 . (p. 5$) Most people li9uidate their assets to calculate their net $orth.FALSE
:ery fe$ people% if any% li9uidate all assets.
Bloom's: ompre ension Difficulty: &edium Learning !"ecti#e: 1%opic: omputing net wort
1 . (p. 5$) # cash flo$ statement uses the e9uation; assets - lia!ilities < net $orth.FALSE
The e9uation is for a personal !alance sheet.
Bloom's: ompre ension Difficulty: Easy Learning !"ecti#e: 1%opic: *inancial statements
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1 . (p. 52) # cash flo$ statement uses the e9uation; cash inflo$s - cash outflo$s < cash surplus=deficit>TRUE
Bloom's: ompre ension Difficulty: Easy Learning !"ecti#e: 1%opic: *inancial statements
20. (p. 52) 6hen completing a cash flo$ statement% deductions are su!tracted from salary todetermine take home pay.TRUE
Bloom's: ompre ension Difficulty: Easy Learning !"ecti#e: 1%opic: as flow statement
21. (p. 52) 6hen completing a cash flo$ statement% take home pay less deductions e9ualssalary.FALSE
Bloom's: ompre ension Difficulty: &edium Learning !"ecti#e: 1%opic: as flow statement
22. (p. 5+) 4inancial advisers suggest that an emergency fund should cover one to t$o months of living e/penses.FALSE
#n emergency fund should cover three to si/ months of living e/penses.
Bloom's: Knowledge Difficulty: &edium Learning !"ecti#e: 2%opic: Budget
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23. (p. 5+) 6hen creating a !udget% it is important to save the amount you have left at the end ofthe month.FALSE
t is important to )pay yourself first.)
Bloom's: Knowledge Difficulty: &edium Learning !"ecti#e: 2%opic: Budget
2". (p. +2) ?ne method to spend more money is to use a direct deposit system from payroll.FALSE
*irect deposit is one method to make saving easier.
Bloom's: Knowledge Difficulty: Easy Learning !"ecti#e: 4%opic: 3a#ings tec ni ues
2&. (p. +2) ?ne method to save more money is to $rite a check each payday and deposit it in asavings account not readily availa!le for regular spending.TRUE
*irect deposit is one method to make saving easier.
Bloom's: Knowledge Difficulty: Easy Learning !"ecti#e: 4%opic: 3a#ings tec ni ues
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Multiple Choi e Questions
2 . (p. 45) Money management refers to#. 'reparing personal financial statements.!" *ay-to-day financial activities.C. Trade-offs that occur $ith financial decisions.*. Storing financial records for easy access.. Spending money on current living e/penses.
Bloom's: ompre ension Difficulty: &edium Learning !"ecti#e: $%opic: &oney management
2 . (p. 4+) 6hich of the follo$ing is 7?T a component of money management@#. Creating personal financial records to document !usiness transactions and legal matters(. Creating personal financial statements to measure and assess financial position and
progressC. Creating a !udget*. 7one of the a!ove are components of money managementE" #ll of the a!ove are components of money management
Bloom's: ompre ension Difficulty: &edium Learning !"ecti#e: 1
%opic: omponents of money management
2 . (p. 4 ) # home file should !e used for storing#. #ll financial documents and records.!" 4inancial records for current needs.C. *ocuments that re9uire ma/imum security.*. ?!solete financial documents.. 5ecords that are difficult to replace.
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2 . (p. 4 ) 6hich of the follo$ing financial documents $ould most likely !e stored in a safedeposit !o/@#. 6-2 forms(. personal financial statements
C. $arranties#" marriage certificates. checking account statements
Bloom's: ompre ension Difficulty: Easy Learning !"ecti#e: $%opic: ersonal financial records
30. (p. 4 ) 6hich of the follo$ing is most correct@
#. # $arranty !elongs in a safe deposit !o/(. # !irth certificate should !e kept in a personal computer systemC" Ta/ records !elong in a home file*. 'ast !udgets !elong in a safe deposit !o/. #doption papers !elong in a home file
Aome file; 6arranty% ta/ recordsSafe deposit !o/; (irth certificate% adoption papers'ersonal computer system; 'ast !udgets
Bloom's: ,pplication Difficulty: ard Learning !"ecti#e: 1%opic: *inancial records
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3". (p. 4 ) The num!er of personal financial records a household has to organi e may seemover$helming. Ao$ long should you keep documents relating to the purchase of real estate@#. ntil the mortgage is paid off (. ntil you move out of the house
C. Three years*. Seven yearsE" ndefinitely
Bloom's: ,pplication Difficulty: &edium Learning !"ecti#e: 1%opic: *inancial records
3&. (p. 4 ) Ao$ long should you keep documents relating to investments@
#. 7o need to since the !roker pro!a!ly has a copy!" #s long as you o$n themC. Seven years*. Ten years. 'ermanently
Bloom's: ,pplication Difficulty: &edium Learning !"ecti#e: 1%opic: *inancial records
3 . (p. 4 ) Ao$ long should you keep your most current $ill@#. 7o need to keep it since your la$yer pro!a!ly has a photocopy(. ?ne year C. Three years*. Seven yearsE" 'ermanently
Bloom's: ,pplication Difficulty: &edium
Learning !"ecti#e: 1%opic: *inancial records
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3 . (p. 40) The main purposes of personal financial statements are to;#. 5eport your current financial position(. Measure your progress to$ard financial goalsC. Maintain information a!out your financial activities
*. 'rovide data for preparing ta/ forms or applying for creditE" These are all correct
Bloom's: ompre ension Difficulty: Easy Learning !"ecti#e: 1%opic: ersonal financial statements
3 . (p. 40) 6hich of the follo$ing are considered to !e the primary personal financialstatements@
#. (udget and credit card statements!" (alance sheet and cash flo$ statementC. Check!ook and !udget*. Ta/ returns. (ank statement and savings pass!ook
Bloom's: ompre ension Difficulty: &edium Learning !"ecti#e: 1%opic: ersonal financial statements
3 . (p. 40) # personal !alance sheet presents#. #mounts !udgeted for spending.(. ncome and e/penses for a period of time.C. arnings on savings and investments.#" tems o$ned and amounts o$ed.. 4amily financial goals.
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Learning !"ecti#e: 1%opic: ersonal financial statements
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"0. (p. 40) The current financial position of an individual or family is !est presented $ith the useof a=n>#. (udget.(. Cash flo$ statement.
C" (alance sheet.*. (ank statement.. Time value of money report.
Bloom's: ompre ension Difficulty: &edium Learning !"ecti#e: 1%opic: ersonal financial statements
"1. (p. 40) #nother name for a statement of financial position is a
A" (alance sheet.(. (ank statement.C. (udget.*. Cash flo$ statement.. Time value of money report.
Bloom's: ompre ension Difficulty: ard Learning !"ecti#e: 1%opic: ersonal financial statements
"2. (p. 40) The statement that includes li9uid assets% real estate% personal possessions% andinvestment assets is kno$n as aA" 'ersonal !alance sheet.(. (ank statement.C. (udget.*. Cash flo$ statement.. Time value of money report.
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"3. (p. 5$) tems $ith value are referred to as#. 8ia!ilities.(. :aria!le e/penses.C. 7et $orth.
*. ncome.E" #ssets.
Bloom's: ompre ension Difficulty: Easy Learning !"ecti#e: 1%opic: ersonal financial statements
"". (p. 5675$) 6hich of the follo$ing is 7?T a li9uid asset@#. Cash $ithdra$n from an #TM
(. Cash value of life insuranceC. Checking account !alance*. Coins in a Dar at homeE" 5etirement investments
Bloom's: ompre ension Difficulty: &edium Learning !"ecti#e: 1%opic: ,ssets
"&. (p. 5675$) 6hen creating a personal !alance sheet% $hich of the follo$ing is a real estateasset@#. Cash value of life insurance!" :acation propertyC. 'ossessions in your home*. nvestments for a dream home. Mutual funds
Bloom's: ompre ension Difficulty: ard
Learning !"ecti#e: 1%opic: ,ssets
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" . (p. 4075$) 6hen creating a personal !alance sheet% $hich of the follo$ing is considered to !ea personal possession asset@A" # five-year-old television set(. # home
C. Cash $ithdra$n from an #TM*. 5etirement investments. :acation property
Bloom's: ompre ension Difficulty: ard Learning !"ecti#e: 1%opic: ,ssets
" . (p. 4075$) 6hen creating a personal !alance sheet% $hich of the follo$ing is an investment
asset@#. Cash value of life insurance(. Checking accountC. 'ossessions in your home#" 5etirement account. :acation property
Bloom's: ompre ension Difficulty: &edium Learning !"ecti#e: 1%opic: ,ssets
" . (p. 4075$) 6hen creating a personal !alance sheet% $hich of the follo$ing is a currentlia!ility@#. Checking account(. 7et $orthC. #uto loan*. Money your sister o$es you in t$o yearsE" Charge account
Bloom's: ompre ension Difficulty: &edium Learning !"ecti#e: 1%opic: L ia!ilities
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" . (p. 40) The amount you $ould have if everything of value $ould !e sold and all de!ts $ould !e paid in full.#. 7et assets.!" 7et $orth.
C. Total lia!ilities.*. Total income.. (udgeted e/penses.
Bloom's: ompre ension Difficulty: &edium Learning !"ecti#e: 1%opic: 8et wort
&0. (p. 40) The e9uation to calculate net $orth is;
#. #ssets - cash outflo$s < net $orth(. Cash inflo$s - lia!ilities < net $orthC. Cash inflo$s - cash outflo$s < net $orth#" #ssets - lia!ilities < net $orth. Cash inflo$s E lia!ilities < net $orth
Bloom's: ompre ension Difficulty: &edium Learning !"ecti#e: 1%opic: 8et wort
&1. (p. 5$) The ina!ility to pay de!ts $hen they are due is called;#. 8ia!ilities!" nsolvencyC. 7et $orth*. Cash flo$. 8i9uid assets
Bloom's: ompre ension Difficulty: &edium
Learning !"ecti#e: 1%opic: 8et wort
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&2. (p. 5$) 6hich of the follo$ing situations descri!es a person $ho could !e insolvent@#. #ssets F& %000G annual e/penses F 0%000(. #ssets F %000G net $orth F22%000C. 8ia!ilities F"&%000G net $orth F %000
#" #ssets F"0%000G lia!ilities F"&%000. #nnual cash inflo$s F"&%000G lia!ilities F&0%000
Bloom's: ,pplication Difficulty: &edium Learning !"ecti#e: 1%opic: 8et wort
&3. (p. 51) #ll of the follo$ing are $ays that households can increase their net $orth e9cept: #. ncrease their savings
(. 5educe spendingC. ncrease value of investments*. 5educe amounts o$edE" ncrease their de!t ratio
Bloom's: ompre ension Difficulty: &edium Learning !"ecti#e: 1%opic: 8et wort
&". (p. 51) 6hich of the follo$ing $ill increase the net $orth of a household@#. *ecrease saving !y F&0 per month(. ncrease the amount !orro$ed for maDor purchasesC" *ecrease spending !y F& per day*. nvest in possessions $hose values do not increase. ,eep an e/tra F100 in a checking account instead of a savings account
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&&. (p. 56 7 51) 6hich of the follo$ing is a cash inflo$@#. Mail rent check (. (uy groceriesC. Make a loan payment
#" 5eceive a paycheck . 'ay medical e/penses
Bloom's: ompre ension Difficulty: Easy Learning !"ecti#e: 1%opic: as flows
& . (p. 52) 6hich of the follo$ing appears on a cash flo$ statement@#. #ssets
!" 'ayments for varia!le e/pensesC. 7et $orth*. 8ia!ilities. nvestment transfers
The other choices $ould appear on a !alance sheet.
Bloom's: ompre ension Difficulty: &edium
Learning !"ecti#e: 1%opic: as flows
& . (p. 52) 6hich of the follo$ing appears on a cash flo$ statement@#. Aome value!" 8oan paymentC. 7et $orth*. (alance of mortgage. Transfer from one mutual fund to another
The other choices $ould appear on the personal !alance sheet.
Bloom's: ompre ension Difficulty: ard Learning !"ecti#e: 1%opic: as flows
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& . (p. 51) 4inancial e/perts recommend a monthly savings ratio of at least BBBB of grossincome.#. 0H!" & - 10H
C. 20H*. 2& - 3&H. &0H
Bloom's: Knowledge Difficulty: &edium Learning !"ecti#e: 1%opic: -atios for e#aluating financial progress
& . (p. 51) 4inancial e/perts recommend a de!tIpayments ratio of less than BBBB of take-home
pay.#. 0H(. & - 10HC" 20H*. 2& - 3&H. &0H
Bloom's: Knowledge Difficulty: &edium Learning !"ecti#e: 1%opic: -atios for e#aluating financial progress
0. (p. 51) # current ratio of 2 means;#. 2H from each paycheck is availa!le for savings(. The minimum payment for a credit card is 2H of the !alanceC. 2 months of living e/penses are availa!le in case of emergency*. 7et $orth e9uals 2 times the amount of de!tE" F2 of li9uid assets are availa!le for every F1 in current lia!ilities
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". (p. 51) 6hich of the follo$ing ratios indicates the num!er of months in $hich livinge/penses can !e paid if an emergency arises@#. *e!t ratio(. Current ratio
C" 8i9uidity ratio*. *e!t payments ratio. Savings ratio
Bloom's: ,nalysis Difficulty: &edium Learning !"ecti#e: 1%opic: -atios for e#aluating financial progress
&. (p. 51) 6hich of the follo$ing ratios indicates the amount of a personJs earnings that goes
for payments for credit cards% auto loans% and other de!t =e/cept mortgage>@#. *e!t ratio(. Current ratioC. 8i9uidity ratio#" *e!t payments ratio. Savings ratio
Bloom's: ,nalysis Difficulty: &edium Learning !"ecti#e: 1%opic: -atios for e#aluating financial progress
. (p. 51) 6hich of the follo$ing ratios sho$s the relationship !et$een gross income andmoney not spent@#. *e!t ratio(. Current ratioC. 8i9uidity ratio*. *e!t payments ratioE" Savings ratio
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. (p. 51752) #ll of the follo$ing are sources of income e9cept #. nterest(. CommissionC. *ividends
*. SalaryE" Social security ta/es
Bloom's: ompre ension Difficulty: Easy Learning !"ecti#e: 1%opic: as flows
. (p. 52) 6hich of the follo$ing is a deduction to determine take-home pay@#. nterest
(. CommissionsC. *ividends*. SalaryE" Social security ta/es
Bloom's: ompre ension Difficulty: Easy Learning !"ecti#e: 1%opic: as flows
. (p. 52) *isposa!le income e9uals#. Kross income!" Take-home payC. #mount !eing saved each month*. Money left over after paying for housing% food% and other necessities. Social security ta/es
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0. (p. 52) *iscretionary income e9uals#. Kross income(. Take-home payC. #mount !eing saved each month
#" Money left over after paying for housing% food% and other necessities. Social security ta/es
Bloom's: ompre ension Difficulty: &edium Learning !"ecti#e: 1%opic: as flows
1. (p. 52) The money left over after paying for housing% food% and other necessities is called#. Monthly savings
!" *iscretionary incomeC. *isposa!le income*. Kross income. Take-home pay
Bloom's: ompre ension Difficulty: &edium Learning !"ecti#e: 1%opic: as flows
2. (p. 52) #nother name for take-home pay is#. Monthly savings(. *iscretionary incomeC" *isposa!le income*. Kross income. *eductions
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. (p. 55) 6hich of the follo$ing is 7?T a main purpose of a !udget@#. Aelp to live $ithin your income!" Spend your money $ithout careC. 5each financial goals
*. 'repare for financial emergencies. *evelop $ise financial management ha!its
# correct goal for ( is to spend your money $isely.
Bloom's: ompre ension Difficulty: Easy Learning !"ecti#e: 2%opic: Budgets
. (p. 5575+) 6hen creating a !udget% $hich of the follo$ing statements is true@#. 'lan on your income !eing the same as last year.(. t is easier to create a !udget if your earnings vary.C. Common financial pro!lems can !e ma/imi ed through !udgeting.#" 7um!ers in the !udget are estimates.. t is !etter to overestimate your income for ne/t year.
# - estimate your income for the given time periodG ( - varia!le earnings make it moredifficult to !udget incomeG C - common financial pro!lems can !e minimi ed through
!udgetingG - it is !etter to only include money that you are sure youJll receive.
Bloom's: ompre ension Difficulty: &edium Learning !"ecti#e: 2%opic: Budgets
. (p. 5+) 6hen creating a !udget% it is important to;#. Save the amount you have left at the end of the month.(. Set aside savings after your varia!le e/penses are paid.C. Save an amount no more than three percent of your annual income in emergency fund.*. Spend the amount of money you have !udgeted in each category.E" Set aside savings !efore other e/penses are !udgeted.
Bloom's: ompre ension Difficulty: &edium Learning !"ecti#e: 2%opic: Budgets
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. (p. 50) The difference !et$een the amount !udgeted and the actual amount received or spentis called theA" :ariance(. Cash outflo$
C. ncome*. Cash inflo$. :aria!le e/pense
Bloom's: Knowledge Difficulty: Easy Learning !"ecti#e: 2%opic: Budgets
0. (p. 50) # !udget deficit $ould result $hen a personJs or familyJs
#. #ctual e/penses are less than planned e/penses.(. #ssets e/ceed lia!ilities.C. #ctual e/penses e9ual planned e/penses.#" #ctual e/penses are greater than planned e/penses.. 7et $orth decreases.
Bloom's: ompre ension Difficulty: Easy Learning !"ecti#e: 2%opic: Budgets
1. (p. 50) #fter the !udget is created% it is important to#. 4ile the !udget in a safe deposit !o/(. Compare it to the previous !udgetC" Track spending and identify variances*. ?nly pay attention to e/penses that are more than 10 percent of your salary. 7one of the a!ove are true since !udgets are Dust estimates
Bloom's: ompre ension Difficulty: &edium
Learning !"ecti#e: 2%opic: Budgets
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2. (p. 50) 6hich of the follo$ing categories $ould !e most difficult to cut from a household !udget@#. :acations(. 8a$n services
C. Ca!le*. Charita!le donationsE" #uto insurance
Many admit that auto insurance is a necessary e/pense% the others are discretionary.
Bloom's: ompre ension Difficulty: Easy Learning !"ecti#e: 2%opic: Budgets
3. (p. +6) # !udget that involves envelopes% folders or containers to hold money or slips of paper is called a#. Mental !udget!" 'hysical !udgetC. 6ritten !udget*. Computeri ed !udget. #llocated !udget
Bloom's: Knowledge Difficulty: Easy Learning !"ecti#e: 2%opic: Budgets
". (p. +6) # !udget that can !e kept on note!ook paper or !udgeting paper is called a#. Mental !udget(. 'hysical !udgetC" 6ritten !udget*. Computeri ed !udget. #llocated !udget
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&. (p. +$7+2) The document that $ould !e most useful to track spending patterns for the past fe$months is#. (alance sheet!" Cash flo$ statement
C. (udget*. #ll of the a!ove. 7one of the a!ove
See Concept Check 2-"
Bloom's: ompre ension Difficulty: &edium Learning !"ecti#e: 4%opic: &oney management
. (p. +$) The document that $ould !e most useful to track planned spending patterns for thene/t month is#. (alance sheet(. Cash flo$ statementC" (udget*. #ll of the a!ove. 7one of the a!ove
See Concept Check 2-"
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. (p. +$) The document that $ould !e most useful to track current value of investmentaccounts isA" (alance sheet(. Cash flo$ statement
C. (udget*. #ll of the a!ove. 7one of the a!ove
See Concept Check 2-"
Bloom's: ompre ension Difficulty: &edium Learning !"ecti#e: 4%opic: &oney management
. (p. 5$) # family $ith F"&%000 in assets and F22%000 of lia!ilities $ould have a net $orth of#. F22%000!" F23%000C. F"1%000*. F"&%000. F %000
#ssets - lia!ilities < F"&%000 - 22%000 < F23%000
Bloom's: ,pplication Difficulty: Easy Learning !"ecti#e: 1%opic: 8et wort
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Chapter 02 - Money Management Skills
. (p. 5$) 'atrick Kuitman has a net $orth of F1& %000 and lia!ilities of F1 %000. 6hat are histotal assets@#. F11%000(. F1& %000
C. F1 1%&00*. F1 %000E" F323%000
7et $orth E lia!ilities < F1& %000 E 1 %000 < F323%000
Bloom's: ,pplication Difficulty: &edium Learning !"ecti#e: 1%opic: 8et wort
0. (p. 5$) Kiven the follo$ing information% calculate the net $orth;#ssets < F&000Cash inflo$s < F"&00Cash outflo$s < F20008ia!ilities < F1000#. F&00(. F1000C. F2&00*. F3000E" F"000
#ssets - lia!ilities < F&000 - 1000 < F"000
Bloom's: ,pplication Difficulty: &edium Learning !"ecti#e: 1%opic: 8et wort
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Chapter 02 - Money Management Skills
2. (p. 51) Kiven the follo$ing information% calculate the current ratio;8ia!ilities F2"%0008i9uid assets F"%"00Monthly credit payments F300
Monthly savings F2 0 7et $orth F 2%000Current lia!ilities F1%100Take-home pay F1% 00Kross income F3%000Monthly e/penses F1%&"0#. 33.3!" "C. 2.*. 1 .. .
li9uid assetsIcurrent lia!ilities - ""00I1100 < "
Bloom's: ,pplication Difficulty: ard Learning !"ecti#e: 1%opic: -atios
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Chapter 02 - Money Management Skills
. (p. 5 ) 5e!ecca Kladlyn !udgeted F10&0 for housing and utilities in Luly. She actually spentF 2. 6hat is her !udget variance@#. F 2 deficit(. F deficit
C. F"" deficit#" F surplus. F 2 surplus
F10&0 !udgeted less F 2 spent < F surplus. 7ote; Similar to self-test pro!lem 2.
Bloom's: ,pplication Difficulty: &edium Learning !"ecti#e: 2%opic: Budget