Chap 2 quiz

False

Most financial records should be kept in a safe-deposit box

B

Definite financial obligations are referred to as A. Variable expenses B. Fixed expenses C. Equity D. Investment assets

True

A budget deficit exists when actual spending exceeds projected spending

True

A personal balance sheet reports the financial position of a person or family on a given date

B

A personal cash flow statement presents A. Amounts earned from savings B. Income and payments C. Assets and liabilities D. Amounts owed to others

A

A_________ Is a specific plan for spending A. Budget B. Balance sheet C. Income statement D. Bank statement

C

An example of liquid asset would be A. Home B. An automobile C. A checking account D. Retirement account

False

Assets represent amounts owed to others that must be paid within the next year

True

Spending less than you income will increase net worth

D

______ represents amount owed to others A. Current assets B. Expenses C. Mutual funds D. Liabilities