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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. Assets?
Budget - summary of checks - Convenience
Net worth statement
What you own
Money you make subtracted from how much you spend

2. What are the various types of assets?
Fixed - variable
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
Real estate - personal possessions - investment assets
Personal employment records - tax records

3. What are the benefits of having an organized system for financial records?
Handling daily business - bills payed on time - taxes - investments
Paper that you give to your employer telling them how much money to take out of your taxes
How ever long you need it!
Record income - record cash outflows - determine net cash flows

4. Net worth?
Indicates the difference between your total assets total liabilities at any given date.
Investments - wages - interest
FOREVER
Balance sheet - cash flow statement - budget

5. How is net worth calculated?
Real estate - personal possessions - investment assets
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Assets - liabilities = net worth
Indicates the difference between your total assets total liabilities at any given date.

6. How long should you keep tax return forms?
Paper that you give to your employer telling them how much money to take out of your taxes
6 years
Record income - record cash outflows - determine net cash flows
Budget - summary of checks - Convenience

7. What are some oppertunity cost associated with money management?
The amount of money you make before taxes or deductions
What you owe
Cash or check
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money

8. What is a liquid asset?
6 years
Cash and items that are easily converted to cash
Day to day financial activities used to manage personal financial stuff and security
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates

9. What is the difference between a fixed and variable expense?
Assets - liabilities = net worth
Money you make subtracted from how much you spend
Needs - goals - personal situation
Fixed you know whats being payed each month

10. What types of records go in a safety deposit box?
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates
Real estate - personal possessions - investment assets
A sheet of your finances that helps you come to terms with your net worth
6 years

11. What are some sources of income?
Assets - liabilities - net worth
Investments - wages - interest
How ever long you need it!
Money you make subtracted from how much you spend

12. What is at the heart of financial planning?
Needs - goals - personal situation
Daily spending - saving decisions
Cash and items that are easily converted to cash
Money you make subtracted from how much you spend

13. What are various types of liabilities?
Personal income and expenditure statement
Current (less 1 year) credit card bill - long term (more than a year) mortgage
FOREVER
Cash or check

14. What is a cash flow statement?
Paper that you give to your employer telling them how much money to take out of your taxes
Personal income and expenditure statement
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates
Assessing (goals) - Planning (budget)

15. How long should you keep birth certificates - social security cards - etc?
Indicates the difference between your total assets total liabilities at any given date.
FOREVER
Cash flow - keeping records - plan (budget)
Money you make subtracted from how much you spend

16. What types of records would be stored on a home computer?
Paper that you give to your employer telling them how much money to take out of your taxes
Budget - summary of checks - Convenience
Investments - wages - interest
A sheet of your finances that helps you come to terms with your net worth

17. What is a personal balance sheet?
Personal income and expenditure statement
Day to day financial activities used to manage personal financial stuff and security
A sheet of your finances that helps you come to terms with your net worth
Inability to pay debts when they're due

18. What are the 3 components of a cash flow statement?
A sheet of your finances that helps you come to terms with your net worth
Record income - record cash outflows - determine net cash flows
Net worth statement
Personal income and expenditure statement

19. What are the 3 components of money management?
Net worth statement
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Daily spending - saving decisions
Cash flow - keeping records - plan (budget)

20. What is a w-4?
Fixed you know whats being payed each month
Paper that you give to your employer telling them how much money to take out of your taxes
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Net worth statement

21. How is a net can flow determined?
Fixed you know whats being payed each month
Real estate - personal possessions - investment assets
Money you make subtracted from how much you spend
Personal income and expenditure statement

22. What 3 components are listed on a personal balance sheet?
Investments - wages - interest
6 years
Assets - liabilities - net worth
What you owe

23. What is the purpose of personal financial statements?
Cash and items that are easily converted to cash
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Personal income and expenditure statement
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards

24. How long should you keep records on real estate?
Forever
Cash and items that are easily converted to cash
Needs - goals - personal situation
Budget - summary of checks - Convenience

25. What are the steps in the budgeting process?
Fixed you know whats being payed each month
Handling daily business - bills payed on time - taxes - investments
Net worth statement
Assessing (goals) - Planning (budget)

26. Cash flow can also be called?
Indicates the difference between your total assets total liabilities at any given date.
Assets - liabilities = net worth
What you own
Personal income and expenditure statement

27. How can net worth be increased?
Cash flow - keeping records - plan (budget)
Sell your assets - get another job
How ever long you need it!
A sheet of your finances that helps you come to terms with your net worth

28. What 2 ways can a person be paid?
Cash or check
Fixed - variable
Budget - summary of checks - Convenience
Money you make subtracted from how much you spend

29. Liabilities?
Budget - summary of checks - Convenience
Needs - goals - personal situation
What you owe
Assets - liabilities - net worth

30. What is money management?
Day to day financial activities used to manage personal financial stuff and security
Daily spending - saving decisions
Investments - wages - interest
Net worth statement

31. How long should you keep records on personal property and investments?
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
Cash flow - keeping records - plan (budget)
How ever long you need it!

32. What are the 2 types of cash outflows?
Fixed - variable
Fixed you know whats being payed each month
Assets - liabilities - net worth
Paper that you give to your employer telling them how much money to take out of your taxes

33. What is a balance sheet also called?
Investments - wages - interest
Net worth statement
A sheet of your finances that helps you come to terms with your net worth
Assessing (goals) - Planning (budget)

34. What types of records go in a home file?
Sell your assets - get another job
Personal employment records - tax records
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Cash or check

35. What 3 things are spending decisions based upon?
Cash and items that are easily converted to cash
Net worth statement
Needs - goals - personal situation
A sheet of your finances that helps you come to terms with your net worth

36. Insolvency?

37. What is gross pay?
Balance sheet - cash flow statement - budget
The amount of money you make before taxes or deductions
Budget - summary of checks - Convenience
What you own

38. What are 3 types of personal financial statements?
Sell your assets - get another job
Personal income and expenditure statement
Personal income and expenditure statement
Balance sheet - cash flow statement - budget