Question 1

In terms of money management decisions,an example of an opportunity cost includes:

Accepted Answer

A)  Spending for current living expenses increases the amount you have for saving and investing.
B)  Saving and investing for the future reduces the amount you can spend now.
C)  Buying on credit results in payments later and increases the amount of future income available.
D)  Using savings for purchases results in additional interest earnings.
E)  Comparison shopping can cost you money and time.F) B) and C)
G) C) and D)

Question 2

Jennifer Rodrick uses a computer to help her record her spending each month.She updates her records weekly.This activity 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) D) and E)
G) A) and E)

Question 3

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 mutual fund worth $5,500 and she has a retirement account worth $38,550.What is the value of her personal possessions?

Accepted Answer

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

Question 4

This month,Ken Grossman has cash inflows of $3,100 and cash outflows of $2,950,resulting in a:

Accepted Answer

A)  balanced budget.
B)  surplus of $150.
C)  deficit of $150.
D)  surplus of $3,100.
E)  deficit of $2,950.F) D) and E)
G) C) and E)

Question 5

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 mutual fund worth $5,500 and she has a retirement account worth $38,550.What is the total value of her assets?

Accepted Answer

A)  $127,850
B)  $98,000
C)  $168,600
D)  $159,900
E)  $171,900F) B) and C)
G) D) and E)

Question 6

Discretionary income is:

Accepted Answer

A)  a person's earnings after deducting taxes and other items.
B)  referred to as net pay.
C)  referred to as disposable income.
D)  money left over after paying for housing, food, and other necessities.
E)  None of theseF) B) and E)
G) A) and C)

Question 7

An example of a liquid asset is:

Accepted Answer

A)  furniture.
B)  jewelry.
C)  automobile.
D)  cash value of life insurance.
E)  home computer.F) A) and E)
G) A) and C)

Question 8

Discretionary income is money left over after paying for housing,food,and other necessities.

Accepted Answer

A) True 
 B)False

Question 9

A decrease in net worth could be the result of:

Accepted Answer

A)  inflows exceeding outflows for a month.
B)  outflows exceeding inflows for a month.
C)  assets exceeding expenses.
D)  increased earnings on the job.
E)  inflows and outflows being equal for a month.F) C) and D)
G) A) and C)

Question 10

Which one of the following illustrates an insolvent situation?

Accepted Answer

A)  Assets $56,000; annual expenses $60,000
B)  Assets $78,000; net worth $22,000
C)  Liabilities $45,000; net worth $6,000
D)  Assets $40,000; liabilities $45,000
E)  Annual cash inflows $45,000; liabilities $50,000F) B) and E)
G) A) and D)

Question 11

Financial goals should take a SMART approach with goals that are:

Accepted Answer

A)  Time-based.
B)  Realistic.
C)  Action-oriented.
D)  Measurable and specific.
E)  All of theseF) B) and E)
G) A) and E)

Question 12

Which one of the following is the best example of a long-term goal for a married couple with no children?

Accepted Answer

A)  Buy a new car
B)  Increase life insurance
C)  Increase savings
D)  Provide for retirement income
E)  Complete collegeF) C) and D)
G) All of the above

Question 13

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 D)
G) A) and E)

Question 14

An organized system of financial records provides a basis for:

Accepted Answer

A)  handling daily business activities.
B)  planning and measuring financial progress.
C)  completing required tax reports.
D)  making effective investment decisions.
E)  All of theseF) B) and C)
G) C) and D)

Question 15

A personal balance sheet reports your income and expenses.

Accepted Answer

A) True 
 B)False

Question 16

A family with $45,000 in assets and $22,000 of liabilities would have a net worth of:

Accepted Answer

A)  $45,000.
B)  $23,000.
C)  $22,000.
D)  $67,000.
E)  $41,000.F) B) and C)
G) None of the above

Question 17

Samuel Jackson has developed a budget that he follows each month.This is a budget that he keeps in his head.He does not write anything down,nor does he use a computer to keep track of this budget.What type of budget has Samuel 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 D)

Question 18

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 mutual fund worth $5,500 and she has a retirement account worth $38,550.What is the value of her liquid assets?

Accepted Answer

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

Question 19

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

Question 20

During the past month,Jennifer Ernet had income of $3,000.During the month,her net worth declined by $200.If no other financial activities occurred,this means Jennifer's payments for the month were:

Accepted Answer

A)  $3,200.
B)  $3,000.
C)  $2,800.
D)  $200.
E)  $0.F) A) and D)
G) A) and B)

Exam 3: Money Management Strategy: Financial Statements and Budgeting

Samuel Jackson has developed a budget that he follows each month.This is a budget that he keeps in his head.He does not write anything down,nor does he use a computer to keep track of this budget.What type of budget has Samuel created?

Correct Answer
verified

Correct Answer
verified

An organized system of financial records provides a basis for:

Correct Answer
verified

In terms of money management decisions,an example of an opportunity cost includes:

Correct Answer
verified

Financial goals should take a SMART approach with goals that are:

Correct Answer
verified

A personal balance sheet reports your income and expenses.

Correct Answer
verified

Current liabilities differ from long-term liabilities based on:

Correct Answer
verified

Discretionary income is:

Correct Answer
verified

Correct Answer
verified

During the past month,Jennifer Ernet had income of $3,000.During the month,her net worth declined by $200.If no other financial activities occurred,this means Jennifer's payments for the month were:

Correct Answer
verified

An example of a liquid asset is:

Correct Answer
verified

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

Correct Answer
verified

Discretionary income is money left over after paying for housing,food,and other necessities.

Correct Answer
verified

A decrease in net worth could be the result of:

Correct Answer
verified

Which one of the following is the best example of a long-term goal for a married couple with no children?

Correct Answer
verified

A family with $45,000 in assets and $22,000 of liabilities would have a net worth of:

Correct Answer
verified

This month,Ken Grossman has cash inflows of $3,100 and cash outflows of $2,950,resulting in a:

Correct Answer
verified

Which one of the following illustrates an insolvent situation?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Exam 3: Money Management Strategy: Financial Statements and Budgeting

Samuel Jackson has developed a budget that he follows each month.This is a budget that he keeps in his head.He does not write anything down,nor does he use a computer to keep track of this budget.What type of budget has Samuel created?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An organized system of financial records provides a basis for:

Correct AnswerverifiedShow Answer

In terms of money management decisions,an example of an opportunity cost includes:

Correct AnswerverifiedShow Answer

Financial goals should take a SMART approach with goals that are:

Correct AnswerverifiedShow Answer

A personal balance sheet reports your income and expenses.

Correct AnswerverifiedShow Answer

Current liabilities differ from long-term liabilities based on:

Correct AnswerverifiedShow Answer

Discretionary income is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

During the past month,Jennifer Ernet had income of $3,000.During the month,her net worth declined by $200.If no other financial activities occurred,this means Jennifer's payments for the month were:

Correct AnswerverifiedShow Answer

An example of a liquid asset is:

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

Discretionary income is money left over after paying for housing,food,and other necessities.

Correct AnswerverifiedShow Answer

A decrease in net worth could be the result of:

Correct AnswerverifiedShow Answer

Which one of the following is the best example of a long-term goal for a married couple with no children?

Correct AnswerverifiedShow Answer

A family with $45,000 in assets and $22,000 of liabilities would have a net worth of:

Correct AnswerverifiedShow Answer

This month,Ken Grossman has cash inflows of $3,100 and cash outflows of $2,950,resulting in a:

Correct AnswerverifiedShow Answer

Which one of the following illustrates an insolvent situation?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified