Test your basic knowledge |

Financial Planning

Subject : business-skills
Instructions:
  • Answer 33 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Generate funds for government spending






2. Facilitates handling Financial affairs -Promotes timely bill paying -Benchmarks for success -records available @ tax time -Improves financial decisions -Clear record of available resources






3. S- specific M- measurable A- action oriented R- realistic T- time based






4. Short Term- within the year (small debts - saving for a vacation) Intermediate- 1 to 5 years Long Term- more than 5 years (retirement)






5. 1. Asses goals and abilities 2. Evaluate employment market 3. Develop resume and letter 4. Interview and assess performance 5. Evaluate positions offered 6. Address career development






6. Savings -Payment services -Borrowing -Trust -asset management account






7. IRS






8. Effective managing of resources - Control of financial affairs - Improved personal relationships - Freedom from financial worry






9. Commitment to a profession that requires continued training






10. Deposit a specific amount each payday into an account not readily accessible - payroll deduction - save coins - and cut down on spending - putting Payroll deductions into saving accounts - Automatic payments from checking into savings accounts or mut






11. Library and online info -career center -Networking -References -Company Visits






12. Storing and maintaining personal financial records - Creating personal financial statements (balance sheets and cash flow) - Creating a plan for spending and saving (budgeting)






13. A Snap Shot (one day) - Assets (cash - checking - savings - home - car - stocks - bonds - retirement) - Liabilities (credit card balances - loans) - Net Worth = (assets) - (liabilities)






14. The process of managing your money to achieve personal economic satisfaction






15. The achievement of financial aspirations that are desired - planned or attempted. It is defined by the individual who seeks it. *unique to each individual






16. Correspondence for minor questions -Office audit: takes place at IRS office -Field audit: most complex - visit you at home






17. Inflation Risk- waiting to buy something could cost more Intrest Rate Risk- changing intreats rate effect your cost Income Risk- loss of job Personal Risk- additional cost associated with health and safety Liquidity Risk- investment with difficulty






18. Implementing the budget (recording amnts spent) - Evaluating the budget (reviewing patterns)






19. Tax on Purchase (sales tax) - Tax on Property (property tax) - Tax on Wealth (estate or inheritance taxes) - Tax on Earnings (Income and social security)






20. 1. Assess goals and abilities 2. Evaluate employment market 3. Develop resume and letter 4. Interview and assess performance 5. Evaluate positions offered 6. Address career development






21. Where can I get best return? -Minimize cost of checking and payment services? -Can I borrow money when I need it? Types of endorsements -Blank Endorsement: Sign back of check; most risky -Restrictive Endorsement: write acct # and "for deposit only"






22. 1. Work well w/ others 2. Perform at peak levels 3. Wide array of interests 4. Cope w/ conflict and change 5. Financial awareness 6. Technical knowledge 7. Problem solving ability 8. Excellent communication skills






23. The way we can afford to live today and make ends meet






24. Correspondance (minor questions) - Office audit - Field (most complex) (more coorp. than ppl.)






25. Campus Projects -Internships -Volunteer work -Part-time employment -Full-time employment






26. Commercial Banks -Savings and loan associations -Mutual Savings Banks -Credit Unions






27. Purchases -property -wealth (inheritance) -earnings






28. A financial statement that lists and summarizes income and expense transactions over a period of time






29. Position obtained to earn money






30. Legal






31. How we want to live financially






32. Illegal






33. Spending reduces savings potential while saving reduces amounts available for spending -Credit use ties up future income -Using savings for purchases depletes savings -Comparison shopping spends time but saves money