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Financial Statements And Budgeting

Instructions:

Answer 38 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. Liabilities?
Assessing (goals) - Planning (budget)
Assets - liabilities - net worth
Record income - record cash outflows - determine net cash flows
What you owe

2. What is at the heart of financial planning?
Fixed you know whats being payed each month
Daily spending - saving decisions
Paper that you give to your employer telling them how much money to take out of your taxes
Fixed - variable

3. What are some oppertunity cost associated with money management?
Forever
Assets - liabilities = net worth
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
How ever long you need it!

4. How long should you keep tax return forms?
Fixed you know whats being payed each month
Personal employment records - tax records
How ever long you need it!
6 years

5. Net worth?
Daily spending - saving decisions
Paper that you give to your employer telling them how much money to take out of your taxes
Indicates the difference between your total assets total liabilities at any given date.
Real estate - personal possessions - investment assets

6. What types of records go in a safety deposit box?
Needs - goals - personal situation
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates
Indicates the difference between your total assets total liabilities at any given date.
Investments - wages - interest

7. What is the purpose of personal financial statements?
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
Handling daily business - bills payed on time - taxes - investments
Assets - liabilities = net worth
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money

8. How is net worth calculated?
Assets - liabilities = net worth
Balance sheet - cash flow statement - budget
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
Personal income and expenditure statement

9. What 2 ways can a person be paid?
Cash and items that are easily converted to cash
Handling daily business - bills payed on time - taxes - investments
Cash or check
Personal income and expenditure statement

10. What types of records go in a home file?
Current (less 1 year) credit card bill - long term (more than a year) mortgage
Personal employment records - tax records
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
A sheet of your finances that helps you come to terms with your net worth

11. What types of records would be stored on a home computer?
Budget - summary of checks - Convenience
Handling daily business - bills payed on time - taxes - investments
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates
Personal employment records - tax records

12. What is a liquid asset?
Cash and items that are easily converted to cash
Investments - wages - interest
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards

13. How can net worth be increased?
Record income - record cash outflows - determine net cash flows
A sheet of your finances that helps you come to terms with your net worth
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates
Sell your assets - get another job

14. What are the benefits of having an organized system for financial records?
Handling daily business - bills payed on time - taxes - investments
Assessing (goals) - Planning (budget)
Cash or check
Cash and items that are easily converted to cash

15. How long should you keep records on personal property and investments?
Real estate - personal possessions - investment assets
How ever long you need it!
Sell your assets - get another job
A sheet of your finances that helps you come to terms with your net worth

16. Cash flow can also be called?
Daily spending - saving decisions
Personal income and expenditure statement
A sheet of your finances that helps you come to terms with your net worth
Cash or check

17. What is a personal balance sheet?
A sheet of your finances that helps you come to terms with your net worth
Handling daily business - bills payed on time - taxes - investments
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates
Personal income and expenditure statement

18. How long should you keep records on real estate?
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
Forever
Assets - liabilities - net worth
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money

19. What is a cash flow statement?
Fixed you know whats being payed each month
FOREVER
Assets - liabilities - net worth
Personal income and expenditure statement

20. Assets?
What you own
Day to day financial activities used to manage personal financial stuff and security
What you owe
Budget - summary of checks - Convenience

21. What are the steps in the budgeting process?
Assessing (goals) - Planning (budget)
Fixed you know whats being payed each month
Forever
Inability to pay debts when they're due

22. What are the various types of assets?
Net worth statement
Cash and items that are easily converted to cash
Real estate - personal possessions - investment assets
What you owe

23. What are the 3 components of a cash flow statement?
Budget - summary of checks - Convenience
Daily spending - saving decisions
Assessing (goals) - Planning (budget)
Record income - record cash outflows - determine net cash flows

24. What is gross pay?
Assessing (goals) - Planning (budget)
What you owe
The amount of money you make before taxes or deductions
Personal employment records - tax records

25. What is a w-4?
Money you make subtracted from how much you spend
Assessing (goals) - Planning (budget)
Net worth statement
Paper that you give to your employer telling them how much money to take out of your taxes

26. What are the 2 types of cash outflows?
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates
Inability to pay debts when they're due
Fixed - variable
Sell your assets - get another job

27. What is the difference between a fixed and variable expense?
A sheet of your finances that helps you come to terms with your net worth
Cash or check
Indicates the difference between your total assets total liabilities at any given date.
Fixed you know whats being payed each month

28. Insolvency?

29. What is money management?
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Cash or check
Day to day financial activities used to manage personal financial stuff and security
Assessing (goals) - Planning (budget)

30. How is a net can flow determined?
Cash and items that are easily converted to cash
Investments - wages - interest
Fixed you know whats being payed each month
Money you make subtracted from how much you spend

31. What 3 components are listed on a personal balance sheet?
Cash and items that are easily converted to cash
Sell your assets - get another job
Day to day financial activities used to manage personal financial stuff and security
Assets - liabilities - net worth

32. What is a balance sheet also called?
The amount of money you make before taxes or deductions
Cash and items that are easily converted to cash
Net worth statement
Current (less 1 year) credit card bill - long term (more than a year) mortgage

33. What are various types of liabilities?
Indicates the difference between your total assets total liabilities at any given date.
Needs - goals - personal situation
A sheet of your finances that helps you come to terms with your net worth
Current (less 1 year) credit card bill - long term (more than a year) mortgage

34. How long should you keep birth certificates - social security cards - etc?
Assets - liabilities = net worth
FOREVER
Money you make subtracted from how much you spend
What you own

35. What are the 3 components of money management?
Inability to pay debts when they're due
Cash flow - keeping records - plan (budget)
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
FOREVER

36. What are 3 types of personal financial statements?
Balance sheet - cash flow statement - budget
Cash or check
Indicates the difference between your total assets total liabilities at any given date.
Personal income and expenditure statement

37. What are some sources of income?
Investments - wages - interest
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
What you own
What you owe

38. What 3 things are spending decisions based upon?
Fixed you know whats being payed each month
Net worth statement
Assets - liabilities - net worth
Needs - goals - personal situation