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






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






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






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






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






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






7. Commitment to a profession that requires continued training






8. 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






9. Generate funds for government spending






10. 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






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






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






13. How we want to live financially






14. IRS






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






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






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






18. Legal






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






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






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






23. Illegal






24. 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






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






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






27. 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"






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






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






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






31. 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






32. 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






33. Position obtained to earn money