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Balance Sheets
Assets & Liabilities
Budgets
Income Statements
Goals & Terms
100
1. The balance sheet describes a family's wealth a. at a certain point in time. b. as an annual summary. c. as a time period less than one year. d. at a future time. e. none of these
What is - a. at a certain point in time.
100
Your ____ is an example of a liquid asset. a. home b. car c. checking account d. charge account e. life insurance cash value
What is c. checking account
100
A budget is a a. purchase plan. b. line of credit. c. financial statement. d. detailed financial forecast. e. set of personal financial objectives.
What is d. detailed financial forecast.
100
The income statement is specific to a. one point in time. b. a specific period of time. c. last year. d. next year. e. none of these.
What is b. a specific period of time.
100
The Wilson family's short-term goals might include a. setting up an emergency fund of three months' income b. buying a house c. sending the kids to college d. planning to retire at age 60 e. all of these
What is a. setting up an emergency fund of three months' income
200
The three parts of your balance sheet are a. income, liabilities, balance. b. assets, expenditures, balance. c. assets, liabilities, balance. d. assets, liabilities, net worth. e. income, liabilities, net worth.
What is d. assets, liabilities, net worth.
200
____ is an example of an personal asset. a. Jewelry b. Recreational equipment c. Corporate bond d. Charge account balance e. Auto insurance premium
What is a. Jewelry
200
The main purpose of a budget is to a. develop goals. b. develop a financial plan. c. give feedback to the plan. d. monitor and control financial outcomes. e. revise goals.
What is d. monitor and control financial outcomes.
200
The income and expenditures statement examines your financial a. level. b. performance. c. position. d. assets. e. objectives.
What is b. performance.
200
____ would not be a long-term financial goal. a. Purchasing a new car b. Providing adequate life insurance c. Reducing income taxes d. Paying your phone bill e. Planning for retirement
What is d. Paying your phone bill
300
____ would not be listed as a liability on your balance sheet. a. Taxes owed b. Loan balances c. Bank credit card charges d. Savings accounts e. Rent due
What is d. Savings accounts
300
A(n) ____ would not be listed as an asset on your balance sheet. a. mortgaged home b. savings account c. owned automobile d. checking account e. leased automobile
What is e. leased automobile
300
Budgets are a. restrictive. b. complicated. c. are forward looking. d. permanent. e. unnecessary.
What is c. are forward looking.
300
The income statement includes a. income, liabilities, net worth. b. income, expenditures, surplus or deficit. c. expenditures, net worth, surplus or deficit. d. net worth, surplus, income or expenditures. e. savings, surplus, income or expenditures.
What is b. income, expenditures, surplus or deficit.
300
Another term sometimes used instead of net worth is a. assets. b. net debts. c. long-term liabilities d. equity. e. liquid assets.
What is d. equity.
400
The balance sheet equation is: a. Total Assets / Total Liabilities = Net Worth. b. Total Assets * Total Liabilities = Net Worth. c. Total Assets - Total Liabilities = Net Worth. d. Total Assets + Total Liabilities = Net Worth. e. Total Liabilities - Total Assets = Net Worth.
What is c. Total Assets - Total Liabilities = Net Worth.
400
____ would not be listed as a liability on your balance sheet. a. Taxes owed b. Loan balances c. Bank credit card charges d. Savings accounts e. Rent due
What is d. Savings accounts
400
The most common budgeting period is a a. week. b. month. c. quarter. d. semi-annually. e. bi-weekly.
What is b. month.
400
When a cash surplus exists on your income and expenditure statements, you can a. acquire assets. b. pay off existing debts. c. increase your savings. d. increase your investments. e. do any of the above.
What is What is e. do any of the above.
400
You are more likely to achieve your goals when a. your income is high. b. goal dates are inflexible. c. short- and long-term goals are established separately. d. goals are reassessed and revised periodically. e. one person controls all goals in the household.
What is d. goals are reassessed and revised periodically.
500
If your ____, your net worth on the balance sheet would have increased from one period to the next. a. liabilities increased and assets remained constant b. liabilities increased and assets decreased c. assets increased and liabilities remain constant d. income increased e. none of these
What is c. assets increased and liabilities remain constant
500
You are solvent if your a. total liabilities exceed total assets. b. total assets exceed total liabilities. c. total assets exceed net worth. d. total liabilities exceed net worth. e. none of these.
What is b. total assets exceed total liabilities.
500
The expenditure categories for your budget should be determined by a. the BLS Urban Family Budget categories. b. purchased budget book headings. c. those used in previous years. d. current and expected future spending. e. itemized tax deductions.
What is d. current and expected future spending.
500
You would not include ____ on an income and expenditures statement. a. the value of your stock portfolio b. taxes withheld c. utilities paid d. mortgage payments e. charitable payments
What is a. the value of your stock portfolio
500
You are solvent if your a. total liabilities exceed total assets. b. total assets exceed total liabilities. c. total assets exceed net worth. d. total liabilities exceed net worth. e. none of these.
What is b. total assets exceed total liabilities.