Chapter 4: Budgets and Records (Section 2, Review questions) [Consumer Ed]

False

A cosigner is responsible for your debts only if you miss three or more payments.

True

A major reason for financial planning is to prevent careless spending.

True

A promissory note is an example of a negotiable instrument.

False

A written agreement between two or more persons is known as an implied contract.

True

and advantage of an electronica filing system is the ease of updating information.

True

fixed expenses remain the same from month to month.

False

in express contract can only be written (not oral).

True

minors are said to have limited contractual capacity to enter into an agreement.

False

net worth is calculated by subtracting your variable expenses from your fixed expenses.

True

original documents, such as insurance policies and wills, should be kept in a safe deposit box.

True

receipts and documents showing income and expenses should be kept in a safe place because they are proof or evidence to use in the event of an audit

False

the statute of frauds requires that all contracts be in writing to be enforceable.

True

to prepare your personal budget, you should first list sources of money you expect to receive, known as income.

False

when your assets are less than your liabilities, you are said to be solvent, which is a good financial position.