Chapter 4 Quiz
Which of the following would not be included in a person's listing of assets?
13,000 car loan
__ are money and items of value that you own.
Assets
Why is it good to prepare a budget analysis and examine variances?
Companies prepare budgets so they can plan the success of their business. Budgeted costs allow them to set prices, and estimate profits. Budget variance analysis addresses these differences.
How are personal goals and financial goals related?
Personal goals and financial goals are related because personal goals gives you a sense of achievement, while financial goals give you a sense of stability. In order to achieve your personal goals, you sometimes need to accomplish your financial goals.
Which of the following is a common Internet scam in which an e-mail is sent from someone posing as your bank or other legitimate business asking for personal info?
Phishing
which of the following would be considered a fixed expense? gasoline clothing entertainment rent
Rent
what should you do if your budget does not balance?
any of these
Assets that are growing in value over time are said to be ________
appreciating
Your net worth can be computed as
assets-liabilities
standards against which progress is measured in reaching goals are called
benchmarks
the amount of money a person has to spend after needs are met is called _____________ income.
discretionary income
A personal net worth statement shows a person's cash inflows and cash outflows for a period of time
false
If you spend less money on an item that you planned to spend, this is an unfavorable variance in your budget analysis
false
Savings should be included in your list of cash inflows when creating the personal cash flow statement
false
Your wealth can be measured using the personal cash flow statement
false
a personal ________ statement shows a person's net worth based on his or her assets and liabilities.
net worth
A(n) __ is a visual display of how long it will take to achieve each phase of your financial plan.
timeline
Although people's financial resources are limited, their wants and needs are unlimited and growing
true
Because most people do not have enough resources to meet all their needs and wants, they must make choices
true
Benchmarks may consists of steps or specific actions to take
true
Generally, websites ending in .edu, .gov and .org are less likely to be biased, or to show preference toward a certain financial product, than those ending in .com, .net, or .biz
true
The amount owed on your credit card is an example of a liability
true
With every buying decision, there is a tradeoff and an opportunity cost
true
A utility bill is an example of
variable expense
What is the missing amounting the budget?
$100
Sherry Mather's has 31,565 in total assets and owes 13,565 on her car loan and credit cards. What is Sherry's net worth?
$18,000
If Pat earns $120 each paycheck and receives four paychecks per month, how much should she include as earnings in her yearly budget?
$5,760
If Alicia budgets $30 per week for lunches but spends $39, what is the variance percentage?
-30%
