Question 1

Amy Farmer has developed a budget that she follows each month.She went to the office supply store and purchased a spiral notebook.Each month she pens in what she wants to spend in the various categories.At the end of the month,she pens the amount that she actually spent in each of these categories and compares the results.What type of budget has Amy created?

Accepted Answer

A)  Mental budget
B)  Physical budget
C)  Written budget
D)  Computerized budget
E)  None of theseF) All of the above
G) A) and B)

Question 2

The amount of income that a person or household has available to spend after deductions for taxes and other items is called:

Accepted Answer

A)  take-home pay.
B)  discretionary income.
C)  surplus.
D)  budget variance.
E)  cash flow.F) A) and E)
G) All of the above

Question 3

Warranties are commonly kept with ____________ purchase records.

Accepted Answer

A)  investment
B)  insurance
C)  credit
D)  financial service
E)  consumerF) None of the above
G) A) and B)

Question 4

One of the main purposes of a budget includes:

Accepted Answer

A)  Live within your income.
B)  Spend your money quickly.
C)  Reach your career goals.
D)  Prepare for financial non-emergencies.
E)  Develop spontaneous financial management habits.F) C) and D)
G) A) and E)

Question 5

To determine a person's solvency,which financial document should be consulted?

Accepted Answer

A)  Cash flow statement
B)  Budget
C)  Debt consolidation statement
D)  Balance sheet
E)  Credit reportF) All of the above
G) A) and C)

Question 6

Which one of the following cash outflows should be listed first on a Cash Flow Statement?

Accepted Answer

A)  Variable expenses
B)  Vacation expenses
C)  Fixed expenses
D)  Unplanned living expenses
E)  Recreation expensesF) A) and E)
G) None of the above

Question 7

Calculate the debt ratio for an individual who has $90,000 in assets and $35,000 in liabilities.

Accepted Answer

A)  0.28
B)  2.57
C)  0.39
D)  0.64
E)  1.25F) A) and B)
G) All of the above

Question 8

Take-home pay is a person's earnings after deductions for taxes and other items.

Accepted Answer

A) True 
 B)False

Question 9

Liabilities are amounts representing:

Accepted Answer

A)  debts.
B)  items of value.
C)  living expenses.
D)  taxable income.
E)  current assets.F) B) and E)
G) B) and D)

Question 10

A person's net worth is the difference between the value of the items owned and the amounts owed to others.

Accepted Answer

A) True 
 B)False

Exam 3: Money Management Strategy: Financial Statements and Budgeting

The amount of income that a person or household has available to spend after deductions for taxes and other items is called:

Correct Answer
verified

One of the main purposes of a budget includes:

Correct Answer
verified

Liabilities are amounts representing:

Correct Answer
verified

Calculate the debt ratio for an individual who has $90,000 in assets and $35,000 in liabilities.

Correct Answer
verified

To determine a person's solvency,which financial document should be consulted?

Correct Answer
verified

Take-home pay is a person's earnings after deductions for taxes and other items.

Correct Answer
verified

Which one of the following cash outflows should be listed first on a Cash Flow Statement?

Correct Answer
verified

Correct Answer
verified

Warranties are commonly kept with ____________ purchase records.

Correct Answer
verified

A person's net worth is the difference between the value of the items owned and the amounts owed to others.

Correct Answer
verified

Exam 3: Money Management Strategy: Financial Statements and Budgeting

The amount of income that a person or household has available to spend after deductions for taxes and other items is called:

Correct AnswerverifiedShow Answer

One of the main purposes of a budget includes:

Correct AnswerverifiedShow Answer

Liabilities are amounts representing:

Correct AnswerverifiedShow Answer

Calculate the debt ratio for an individual who has $90,000 in assets and $35,000 in liabilities.

Correct AnswerverifiedShow Answer

To determine a person's solvency,which financial document should be consulted?

Correct AnswerverifiedShow Answer

Take-home pay is a person's earnings after deductions for taxes and other items.

Correct AnswerverifiedShow Answer

Which one of the following cash outflows should be listed first on a Cash Flow Statement?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Warranties are commonly kept with ____________ purchase records.

Correct AnswerverifiedShow Answer

A person's net worth is the difference between the value of the items owned and the amounts owed to others.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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