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. How long should you keep records on real estate?
Forever
Paper that you give to your employer telling them how much money to take out of your taxes
Current (less 1 year) credit card bill - long term (more than a year) mortgage
Sell your assets - get another job

2. Cash flow can also be called?
Cash and items that are easily converted to cash
Personal income and expenditure statement
Budget - summary of checks - Convenience
Paper that you give to your employer telling them how much money to take out of your taxes

3. What are some sources of income?
Money you make subtracted from how much you spend
Sell your assets - get another job
Real estate - personal possessions - investment assets
Investments - wages - interest

4. How can net worth be increased?
Sell your assets - get another job
What you owe
Current (less 1 year) credit card bill - long term (more than a year) mortgage
Assessing (goals) - Planning (budget)

5. What are the benefits of having an organized system for financial records?
Paper that you give to your employer telling them how much money to take out of your taxes
Assets - liabilities - net worth
Handling daily business - bills payed on time - taxes - investments
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money

6. What 3 components are listed on a personal balance sheet?
Needs - goals - personal situation
Assets - liabilities - net worth
6 years
Personal income and expenditure statement

7. What is a balance sheet also called?
What you own
Net worth 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

8. What types of records go in a home file?
Current (less 1 year) credit card bill - long term (more than a year) mortgage
Assessing (goals) - Planning (budget)
Day to day financial activities used to manage personal financial stuff and security
Personal employment records - tax records

9. What is the difference between a fixed and variable expense?
Paper that you give to your employer telling them how much money to take out of your taxes
A sheet of your finances that helps you come to terms with your net worth
Fixed - variable
Fixed you know whats being payed each month

10. Insolvency?

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

11. What is money management?
6 years
Assets - liabilities = net worth
Day to day financial activities used to manage personal financial stuff and security
Assessing (goals) - Planning (budget)

12. How is a net can flow determined?
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
FOREVER
Sell your assets - get another job
Money you make subtracted from how much you spend

13. How long should you keep tax return forms?
Indicates the difference between your total assets total liabilities at any given date.
Assessing (goals) - Planning (budget)
What you own
6 years

14. What 2 ways can a person be paid?
Cash or check
Needs - goals - personal situation
Personal income and expenditure statement
Assets - liabilities = net worth

15. What is gross pay?
The amount of money you make before taxes or deductions
Assets - liabilities - net worth
Budget - summary of checks - Convenience
A sheet of your finances that helps you come to terms with your net worth

16. What is a cash flow statement?
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Personal income and expenditure statement
Paper that you give to your employer telling them how much money to take out of your taxes

17. What are various types of liabilities?
Personal employment records - tax records
Current (less 1 year) credit card bill - long term (more than a year) mortgage
Needs - goals - personal situation
Assessing (goals) - Planning (budget)

18. What are some oppertunity cost associated with money management?
FOREVER
Balance sheet - cash flow statement - budget
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Cash or check

19. Net worth?
6 years
Indicates the difference between your total assets total liabilities at any given date.
FOREVER
Assessing (goals) - Planning (budget)

20. What types of records go in a safety deposit box?
Personal income and expenditure statement
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates
Net worth statement
Balance sheet - cash flow statement - budget

21. What are the 2 types of cash outflows?
Paper that you give to your employer telling them how much money to take out of your taxes
Net worth statement
Personal income and expenditure statement
Fixed - variable

22. What are the various types of assets?
Fixed you know whats being payed each month
Investments - wages - interest
Cash or check
Real estate - personal possessions - investment assets

23. What 3 things are spending decisions based upon?
Fixed you know whats being payed each month
Handling daily business - bills payed on time - taxes - investments
Needs - goals - personal situation
6 years

24. What is at the heart of financial planning?
Day to day financial activities used to manage personal financial stuff and security
Daily spending - saving decisions
Cash flow - keeping records - plan (budget)
Investments - wages - interest

25. What are the 3 components of money management?
Current (less 1 year) credit card bill - long term (more than a year) mortgage
Cash flow - keeping records - plan (budget)
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
Fixed - variable

26. What types of records would be stored on a home computer?
Indicates the difference between your total assets total liabilities at any given date.
Balance sheet - cash flow statement - budget
Budget - summary of checks - Convenience
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards

27. Assets?
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Sell your assets - get another job
FOREVER
What you own

28. What is the purpose of personal financial statements?
Sell your assets - get another job
Cash flow - keeping records - plan (budget)
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
Personal income and expenditure statement

29. What are the 3 components of a cash flow statement?
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Paper that you give to your employer telling them how much money to take out of your taxes
Record income - record cash outflows - determine net cash flows
Fixed - variable

30. How long should you keep birth certificates - social security cards - etc?
6 years
FOREVER
What you own
The amount of money you make before taxes or deductions

31. What is a w-4?
Current (less 1 year) credit card bill - long term (more than a year) mortgage
Personal employment records - tax records
Paper that you give to your employer telling them how much money to take out of your taxes
The amount of money you make before taxes or deductions

32. What is a personal balance sheet?
Cash or check
Fixed - variable
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

33. Liabilities?
What you owe
Record income - record cash outflows - determine net cash flows
Fixed - variable
Daily spending - saving decisions

34. What are 3 types of personal financial statements?
Personal employment records - tax records
Handling daily business - bills payed on time - taxes - investments
Cash flow - keeping records - plan (budget)
Balance sheet - cash flow statement - budget

35. How long should you keep records on personal property and investments?
How ever long you need it!
Cash or check
Sell your assets - get another job
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates

36. What is a liquid asset?
Cash and items that are easily converted to cash
Sell your assets - get another job
Personal employment records - tax records
Day to day financial activities used to manage personal financial stuff and security

37. How is net worth calculated?
Assets - liabilities = net worth
Cash or check
A sheet of your finances that helps you come to terms with your net worth
Budget - summary of checks - Convenience

38. What are the steps in the budgeting process?
Assessing (goals) - Planning (budget)
Investments - wages - interest
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Forever