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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. Net worth?
Indicates the difference between your total assets total liabilities at any given date.
Budget - summary of checks - Convenience
Paper that you give to your employer telling them how much money to take out of your taxes
Net worth statement

2. What is the difference between a fixed and variable expense?
6 years
The amount of money you make before taxes or deductions
Sell your assets - get another job
Fixed you know whats being payed each month

3. What is the purpose of personal financial statements?
Balance sheet - cash flow statement - budget
Sell your assets - get another job
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
Fixed you know whats being payed each month

4. How is a net can flow determined?
Real estate - personal possessions - investment assets
Budget - summary of checks - Convenience
Assessing (goals) - Planning (budget)
Money you make subtracted from how much you spend

5. Assets?
Investments - wages - interest
Cash or check
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
What you own

6. What 2 ways can a person be paid?
Cash or check
Personal income and expenditure statement
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates
FOREVER

7. What types of records would be stored on a home computer?
Budget - summary of checks - Convenience
Day to day financial activities used to manage personal financial stuff and security
The amount of money you make before taxes or deductions
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates

8. What are various types of liabilities?
Current (less 1 year) credit card bill - long term (more than a year) mortgage
What you own
Budget - summary of checks - Convenience
Personal income and expenditure statement

9. Insolvency?

10. What 3 things are spending decisions based upon?
Current (less 1 year) credit card bill - long term (more than a year) mortgage
What you owe
Fixed you know whats being payed each month
Needs - goals - personal situation

11. What is a cash flow statement?
Handling daily business - bills payed on time - taxes - investments
Record income - record cash outflows - determine net cash flows
Balance sheet - cash flow statement - budget
Personal income and expenditure statement

12. What is money management?
Indicates the difference between your total assets total liabilities at any given date.
Day to day financial activities used to manage personal financial stuff and security
Budget - summary of checks - Convenience
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates

13. How is net worth calculated?
Record income - record cash outflows - determine net cash flows
Personal income and expenditure statement
Assets - liabilities = net worth
Current (less 1 year) credit card bill - long term (more than a year) mortgage

14. What are the benefits of having an organized system for financial records?
Investments - wages - interest
Day to day financial activities used to manage personal financial stuff and security
Handling daily business - bills payed on time - taxes - investments
Real estate - personal possessions - investment assets

15. What are the 3 components of money management?
Cash flow - keeping records - plan (budget)
Fixed - variable
Assessing (goals) - Planning (budget)
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards

16. What is a balance sheet also called?
Cash or check
Record income - record cash outflows - determine net cash flows
Real estate - personal possessions - investment assets
Net worth statement

17. How long should you keep birth certificates - social security cards - etc?
FOREVER
Assessing (goals) - Planning (budget)
6 years
Inability to pay debts when they're due

18. What are the steps in the budgeting process?
Assessing (goals) - Planning (budget)
Assets - liabilities = net worth
What you own
Day to day financial activities used to manage personal financial stuff and security

19. What is a liquid asset?
Balance sheet - cash flow statement - budget
Cash and items that are easily converted to cash
Inability to pay debts when they're due
Fixed - variable

20. How can net worth be increased?
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Assets - liabilities - net worth
Day to day financial activities used to manage personal financial stuff and security
Sell your assets - get another job

21. What types of records go in a safety deposit box?
Cash flow - keeping records - plan (budget)
Inability to pay debts when they're due
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates
Personal income and expenditure statement

22. What are the 3 components of a cash flow statement?
Current (less 1 year) credit card bill - long term (more than a year) mortgage
Needs - goals - personal situation
The amount of money you make before taxes or deductions
Record income - record cash outflows - determine net cash flows

23. What is gross pay?
Fixed - variable
Personal employment records - tax records
The amount of money you make before taxes or deductions
Budget - summary of checks - Convenience

24. Liabilities?
Cash flow - keeping records - plan (budget)
Forever
Investments - wages - interest
What you owe

25. How long should you keep records on real estate?
Forever
Needs - goals - personal situation
Fixed you know whats being payed each month
Current (less 1 year) credit card bill - long term (more than a year) mortgage

26. How long should you keep records on personal property and investments?
How ever long you need it!
Record income - record cash outflows - determine net cash flows
Personal income and expenditure statement
Current (less 1 year) credit card bill - long term (more than a year) mortgage

27. What are the various types of assets?
Personal income and expenditure statement
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates
Real estate - personal possessions - investment assets
Paper that you give to your employer telling them how much money to take out of your taxes

28. What is at the heart of financial planning?
Investments - wages - interest
Handling daily business - bills payed on time - taxes - investments
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Daily spending - saving decisions

29. What 3 components are listed on a personal balance sheet?
What you owe
Assets - liabilities - net worth
FOREVER
What you own

30. What are the 2 types of cash outflows?
Assets - liabilities - net worth
Fixed - variable
FOREVER
The amount of money you make before taxes or deductions

31. What types of records go in a home file?
Personal employment records - tax records
FOREVER
Money you make subtracted from how much you spend
Inability to pay debts when they're due

32. What is a w-4?
Inability to pay debts when they're due
Forever
Net worth statement
Paper that you give to your employer telling them how much money to take out of your taxes

33. What are 3 types of personal financial statements?
Balance sheet - cash flow statement - budget
FOREVER
6 years
Cash or check

34. What is a personal balance sheet?
Sell your assets - get another job
Cash and items that are easily converted to cash
What you own
A sheet of your finances that helps you come to terms with your net worth

35. What are some sources of income?
Cash flow - keeping records - plan (budget)
Investments - wages - interest
How ever long you need it!
6 years

36. Cash flow can also be called?
FOREVER
Assets - liabilities = net worth
Record income - record cash outflows - determine net cash flows
Personal income and expenditure statement

37. What are some oppertunity cost associated with money management?
Daily spending - saving decisions
Needs - goals - personal situation
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
What you own

38. How long should you keep tax return forms?
Inability to pay debts when they're due
Personal employment records - tax records
6 years
Current (less 1 year) credit card bill - long term (more than a year) mortgage