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






2. How we want to live financially






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






4. Commitment to a profession that requires continued training






5. Illegal






6. 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






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






8. 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"






9. IRS






10. 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






11. Generate funds for government spending






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






13. 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






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






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






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






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






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






19. 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






20. Position obtained to earn money






21. 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






22. 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






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






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






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






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






27. Legal






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






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






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






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






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






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