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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 are the 3 components of a cash flow statement?
What you own
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates
Record income - record cash outflows - determine net cash flows
6 years

2. What is a balance sheet also called?
Inability to pay debts when they're due
Sell your assets - get another job
Net worth statement
Cash or check

3. Insolvency?

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4. How is net worth calculated?
Day to day financial activities used to manage personal financial stuff and security
Assets - liabilities = net worth
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
Record income - record cash outflows - determine net cash flows

5. What types of records go in a home file?
The amount of money you make before taxes or deductions
Fixed you know whats being payed each month
Personal employment records - tax records
Investments - wages - interest

6. What is a w-4?
Paper that you give to your employer telling them how much money to take out of your taxes
Budget - summary of checks - Convenience
6 years
Real estate - personal possessions - investment assets

7. Assets?
Day to day financial activities used to manage personal financial stuff and security
What you own
Paper that you give to your employer telling them how much money to take out of your taxes
Money you make subtracted from how much you spend

8. Net worth?
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
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
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates

9. What 2 ways can a person be paid?
Cash or check
Money you make subtracted from how much you spend
Balance sheet - cash flow statement - budget
How ever long you need it!

10. What is gross pay?
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Sell your assets - get another job
Needs - goals - personal situation
The amount of money you make before taxes or deductions

11. What are some sources of income?
A sheet of your finances that helps you come to terms with your net worth
Investments - wages - interest
Assets - liabilities - net worth
Daily spending - saving decisions

12. How is a net can flow determined?
Paper that you give to your employer telling them how much money to take out of your taxes
Balance sheet - cash flow statement - budget
Personal employment records - tax records
Money you make subtracted from how much you spend

13. What are the various types of assets?
Forever
Personal employment records - tax records
Real estate - personal possessions - investment assets
Indicates the difference between your total assets total liabilities at any given date.

14. What 3 components are listed on a personal balance sheet?
Assessing (goals) - Planning (budget)
Assets - liabilities - net worth
Real estate - personal possessions - investment assets
The amount of money you make before taxes or deductions

15. What are the steps in the budgeting process?
Cash or check
Paper that you give to your employer telling them how much money to take out of your taxes
Fixed - variable
Assessing (goals) - Planning (budget)

16. What is the purpose of personal financial statements?
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
Personal income and expenditure statement
Record income - record cash outflows - determine net cash flows
Budget - summary of checks - Convenience

17. What are 3 types of personal financial statements?
Cash flow - keeping records - plan (budget)
Balance sheet - cash flow statement - budget
Assessing (goals) - Planning (budget)
Assets - liabilities - net worth

18. What is the difference between a fixed and variable expense?
Needs - goals - personal situation
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates
Daily spending - saving decisions
Fixed you know whats being payed each month

19. What are the benefits of having an organized system for financial records?
Current (less 1 year) credit card bill - long term (more than a year) mortgage
Handling daily business - bills payed on time - taxes - investments
Cash flow - keeping records - plan (budget)
Indicates the difference between your total assets total liabilities at any given date.

20. What is money management?
Day to day financial activities used to manage personal financial stuff and security
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
6 years
Investments - wages - interest

21. What is a cash flow statement?
Indicates the difference between your total assets total liabilities at any given date.
Personal income and expenditure statement
Cash or check
How ever long you need it!

22. What types of records would be stored on a home computer?
Inability to pay debts when they're due
Budget - summary of checks - Convenience
Daily spending - saving decisions
Needs - goals - personal situation

23. How can net worth be increased?
A sheet of your finances that helps you come to terms with your net worth
Sell your assets - get another job
FOREVER
Balance sheet - cash flow statement - budget

24. Liabilities?
6 years
A sheet of your finances that helps you come to terms with your net worth
Cash flow - keeping records - plan (budget)
What you owe

25. How long should you keep records on personal property and investments?
Current (less 1 year) credit card bill - long term (more than a year) mortgage
Investments - wages - interest
How ever long you need it!
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards

26. What is a personal balance sheet?
A sheet of your finances that helps you come to terms with your net worth
Assets - liabilities - net worth
Day to day financial activities used to manage personal financial stuff and security
Personal employment records - tax records

27. What are the 2 types of cash outflows?
Money you make subtracted from how much you spend
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Budget - summary of checks - Convenience
Fixed - variable

28. What is at the heart of financial planning?
Daily spending - saving decisions
Cash and items that are easily converted to cash
Handling daily business - bills payed on time - taxes - investments
Fixed - variable

29. What is a liquid asset?
Cash and items that are easily converted to cash
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates
Fixed you know whats being payed each month
FOREVER

30. How long should you keep records on real estate?
Credit vs future income - current living expenses vs savings/interest - saving purchases vs interest money
Forever
Investments - wages - interest
Paper that you give to your employer telling them how much money to take out of your taxes

31. What are various types of liabilities?
Current (less 1 year) credit card bill - long term (more than a year) mortgage
Net worth statement
Record income - record cash outflows - determine net cash flows
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards

32. What are the 3 components of money management?
Budget - summary of checks - Convenience
Cash flow - keeping records - plan (budget)
Assessing (goals) - Planning (budget)
Day to day financial activities used to manage personal financial stuff and security

33. How long should you keep birth certificates - social security cards - etc?
Money you make subtracted from how much you spend
Report your financial sit - measure progress towards goals - provide data for preparing taxes/credit cards
Daily spending - saving decisions
FOREVER

34. What are some oppertunity cost associated with money management?
How ever long you need it!
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
Handling daily business - bills payed on time - taxes - investments

35. Cash flow can also be called?
Assessing (goals) - Planning (budget)
Fixed you know whats being payed each month
FOREVER
Personal income and expenditure statement

36. What 3 things are spending decisions based upon?
Needs - goals - personal situation
Sell your assets - get another job
A sheet of your finances that helps you come to terms with your net worth
Assets - liabilities - net worth

37. What types of records go in a safety deposit box?
What you own
Sell your assets - get another job
Birth marriage - death certificates - copy of will - Citizenship papers - stock and bond certificates
How ever long you need it!

38. How long should you keep tax return forms?
6 years
Inability to pay debts when they're due
Cash and items that are easily converted to cash
Record income - record cash outflows - determine net cash flows