Test your basic knowledge |

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. Net worth?
What you owe
Indicates the difference between your total assets total liabilities at any given date.
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
Assessing (goals) - Planning (budget)

2. What are some sources of income?
Record income - record cash outflows - determine net cash flows
Net worth statement
Balance sheet - cash flow statement - budget
Investments - wages - interest

3. What is a personal balance sheet?
A sheet of your finances that helps you come to terms with your net worth
6 years
How ever long you need it!
Cash or check

4. Insolvency?

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

5. What are the various types of assets?
FOREVER
Sell your assets - get another job
Personal income and expenditure statement
Real estate - personal possessions - investment assets

6. What are some oppertunity cost associated with money management?
Real estate - personal possessions - investment assets
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Daily spending - saving decisions
A sheet of your finances that helps you come to terms with your net worth

7. How long should you keep tax return forms?
Inability to pay debts when they're due
Cash and items that are easily converted to cash
How ever long you need it!
6 years

8. What is the purpose of personal financial statements?
Needs - goals - personal situation
Indicates the difference between your total assets total liabilities at any given date.
A sheet of your finances that helps you come to terms with your net worth
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards

9. What types of records would be stored on a home computer?
FOREVER
Fixed - variable
Budget - summary of checks - Convenience
Forever

10. What is a w-4?
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.
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Fixed you know whats being payed each month

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

12. How long should you keep birth certificates - social security cards - etc?
FOREVER
Assets - liabilities - net worth
Assessing (goals) - Planning (budget)
Sell your assets - get another job

13. What are 3 types of personal financial statements?
What you owe
Balance sheet - cash flow statement - budget
Forever
Personal employment records - tax records

14. Cash flow can also be called?
Personal income and expenditure statement
Money you make subtracted from how much you spend
A sheet of your finances that helps you come to terms with your net worth
Forever

15. How long should you keep records on personal property and investments?
Cash flow - keeping records - plan (budget)
How ever long you need it!
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates

16. What is a cash flow statement?
Personal income and expenditure statement
Budget - summary of checks - Convenience
What you own
Inability to pay debts when they're due

17. How is a net can flow determined?
Assets - liabilities = net worth
Day to day financial activities used to manage personal financial stuff and security
Money you make subtracted from how much you spend
Handling daily business - bills payed on time - taxes - investments

18. How long should you keep records on real estate?
Record income - record cash outflows - determine net cash flows
Personal income and expenditure statement
Forever
Assessing (goals) - Planning (budget)

19. Assets?
What you own
Record income - record cash outflows - determine net cash flows
Fixed - variable
Net worth statement

20. What are the steps in the budgeting process?
Assessing (goals) - Planning (budget)
Day to day financial activities used to manage personal financial stuff and security
Fixed - variable
Personal employment records - tax records

21. What is at the heart of financial planning?
Cash or check
Daily spending - saving decisions
Money you make subtracted from how much you spend
FOREVER

22. What is a balance sheet also called?
Personal employment records - tax records
Net worth statement
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Real estate - personal possessions - investment assets

23. What are various types of liabilities?
FOREVER
6 years
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Current (less 1 year) credit card bill - long term (more than a year) mortgage

24. What is money management?
What you own
Day to day financial activities used to manage personal financial stuff and security
Personal income and expenditure statement
FOREVER

25. What 3 things are spending decisions based upon?
Balance sheet - cash flow statement - budget
Forever
Personal income and expenditure statement
Needs - goals - personal situation

26. What are the 3 components of money management?
Cash flow - keeping records - plan (budget)
Assets - liabilities = net worth
Handling daily business - bills payed on time - taxes - investments
Record income - record cash outflows - determine net cash flows

27. What 2 ways can a person be paid?
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Budget - summary of checks - Convenience
Current (less 1 year) credit card bill - long term (more than a year) mortgage
Cash or check

28. What are the 3 components of a cash flow statement?
Record income - record cash outflows - determine net cash flows
Assessing (goals) - Planning (budget)
Net worth statement
Assets - liabilities = net worth

29. Liabilities?
What you owe
Forever
Money you make subtracted from how much you spend
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money

30. What 3 components are listed on a personal balance sheet?
Assets - liabilities - net worth
Record income - record cash outflows - determine net cash flows
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
6 years

31. How is net worth calculated?
Assets - liabilities = net worth
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates
A sheet of your finances that helps you come to terms with your net worth
Net worth statement

32. What types of records go in a home file?
Personal income and expenditure statement
Cash or check
Personal income and expenditure statement
Personal employment records - tax records

33. 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
Assets - liabilities - net worth
Fixed you know whats being payed each month

34. How can net worth be increased?
Sell your assets - get another job
Personal income and expenditure statement
Paper that you give to your employer telling them how much money to take out of your taxes
Cash and items that are easily converted to cash

35. What are the benefits of having an organized system for financial records?
Net worth statement
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
FOREVER
Handling daily business - bills payed on time - taxes - investments

36. What is gross pay?
Personal income and expenditure statement
Day to day financial activities used to manage personal financial stuff and security
The amount of money you make before taxes or deductions
A sheet of your finances that helps you come to terms with your net worth

37. What is a liquid asset?
Cash and items that are easily converted to cash
Forever
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
FOREVER

38. What are the 2 types of cash outflows?
Fixed - variable
Daily spending - saving decisions
Current (less 1 year) credit card bill - long term (more than a year) mortgage
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates