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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. What is money management?
Forever
Day to day financial activities used to manage personal financial stuff and security
What you own
Needs - goals - personal situation

2. How long should you keep records on real estate?
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Assessing (goals) - Planning (budget)
Forever
Cash flow - keeping records - plan (budget)

3. What are some sources of income?
Cash or check
Fixed - variable
Investments - wages - interest
Cash flow - keeping records - plan (budget)

4. What are the 3 components of money management?
Daily spending - saving decisions
Cash flow - keeping records - plan (budget)
Record income - record cash outflows - determine net cash flows
Current (less 1 year) credit card bill - long term (more than a year) mortgage

5. What is a w-4?
Paper that you give to your employer telling them how much money to take out of your taxes
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

6. What are the 3 components of a cash flow statement?
Paper that you give to your employer telling them how much money to take out of your taxes
Day to day financial activities used to manage personal financial stuff and security
What you owe
Record income - record cash outflows - determine net cash flows

7. What types of records go in a safety deposit box?
Budget - summary of checks - Convenience
Cash and items that are easily converted to cash
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates
Record income - record cash outflows - determine net cash flows

8. Liabilities?
Daily spending - saving decisions
What you owe
How ever long you need it!
What you own

9. What 3 things are spending decisions based upon?
Needs - goals - personal situation
6 years
Budget - summary of checks - Convenience
The amount of money you make before taxes or deductions

10. How long should you keep records on personal property and investments?
How ever long you need it!
Assessing (goals) - Planning (budget)
Personal income and expenditure statement
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money

11. How is net worth calculated?
Forever
Assets - liabilities - net worth
Assets - liabilities = net worth
Cash flow - keeping records - plan (budget)

12. What 2 ways can a person be paid?
FOREVER
How ever long you need it!
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
Cash or check

13. What is a balance sheet also called?
Paper that you give to your employer telling them how much money to take out of your taxes
Personal income and expenditure statement
Cash and items that are easily converted to cash
Net worth statement

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

15. What are the benefits of having an organized system for financial records?
Handling daily business - bills payed on time - taxes - investments
Needs - goals - personal situation
Day to day financial activities used to manage personal financial stuff and security
Record income - record cash outflows - determine net cash flows

16. Insolvency?

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17. Cash flow can also be called?
Personal income and expenditure statement
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
Paper that you give to your employer telling them how much money to take out of your taxes
How ever long you need it!

18. What is the difference between a fixed and variable expense?
Fixed you know whats being payed each month
Personal income and expenditure statement
Money you make subtracted from how much you spend
Record income - record cash outflows - determine net cash flows

19. What are various types of liabilities?
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Cash or check
Current (less 1 year) credit card bill - long term (more than a year) mortgage
Budget - summary of checks - Convenience

20. What 3 components are listed on a personal balance sheet?
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
Assets - liabilities - net worth
Fixed - variable
Indicates the difference between your total assets total liabilities at any given date.

21. How long should you keep tax return forms?
Needs - goals - personal situation
Fixed you know whats being payed each month
Real estate - personal possessions - investment assets
6 years

22. What are 3 types of personal financial statements?
Balance sheet - cash flow statement - budget
Cash or check
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
Cash and items that are easily converted to cash

23. Net worth?
Current (less 1 year) credit card bill - long term (more than a year) mortgage
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Indicates the difference between your total assets total liabilities at any given date.
Needs - goals - personal situation

24. What are some oppertunity cost associated with money management?
FOREVER
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
Day to day financial activities used to manage personal financial stuff and security

25. How is a net can flow determined?
FOREVER
Personal income and expenditure statement
Money you make subtracted from how much you spend
Fixed - variable

26. What is a liquid asset?
Assets - liabilities - net worth
Daily spending - saving decisions
Cash and items that are easily converted to cash
Handling daily business - bills payed on time - taxes - investments

27. How can net worth be increased?
6 years
Sell your assets - get another job
Fixed you know whats being payed each month
The amount of money you make before taxes or deductions

28. What is a cash flow statement?
What you own
Personal income and expenditure statement
Cash or check
Paper that you give to your employer telling them how much money to take out of your taxes

29. Assets?
What you own
Personal employment records - tax records
Day to day financial activities used to manage personal financial stuff and security
6 years

30. What are the steps in the budgeting process?
How ever long you need it!
Personal income and expenditure statement
Daily spending - saving decisions
Assessing (goals) - Planning (budget)

31. What types of records would be stored on a home computer?
Budget - summary of checks - Convenience
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
Fixed you know whats being payed each month
Balance sheet - cash flow statement - budget

32. What types of records go in a home file?
Personal employment records - tax records
Assets - liabilities = net worth
Investments - wages - interest
Handling daily business - bills payed on time - taxes - investments

33. What is the purpose of personal financial statements?
Fixed you know whats being payed each month
Money you make subtracted from how much you spend
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
Assessing (goals) - Planning (budget)

34. What is gross pay?
A sheet of your finances that helps you come to terms with your net worth
The amount of money you make before taxes or deductions
Forever
Real estate - personal possessions - investment assets

35. What is at the heart of financial planning?
Daily spending - saving decisions
Cash or check
Record income - record cash outflows - determine net cash flows
Fixed - variable

36. What is a personal balance sheet?
Personal income and expenditure statement
A sheet of your finances that helps you come to terms with your net worth
Real estate - personal possessions - investment assets
Balance sheet - cash flow statement - budget

37. What are the 2 types of cash outflows?
Fixed - variable
Forever
How ever long you need it!
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money

38. How long should you keep birth certificates - social security cards - etc?
Handling daily business - bills payed on time - taxes - investments
FOREVER
Current (less 1 year) credit card bill - long term (more than a year) mortgage
Cash and items that are easily converted to cash