FACS 141 Ch 3 quiz

a budget deficit would result when a persons or family's:

actual spending is grester than planned spending

which of the following item is something that would typically not be stored in a safe deposit box?

bank statement

maddie has a projected income of $4,900. each month she pays $1,100 in rent, $50 for life insurance, and $220 for her auto loan. what percentage of budget goes to fixed expenses?

28%

funds set aside for retirement is an example of an___ asset

investment

the 50/30/20 financial rule of thumb suggests that 30% of income be used for:

wants

common long term liabilities include:

auto loans

chloe's checking account is $500, her savings is $900, her home has a market value or $98,000, her furniture and appliances are worth $12,000, her computer and laptop are worth $3,300, her car is worth $12,500. she's recently purchased an annuity worth $5,500 and has $38,550 in her retirement plan. what's the value of her liquid assets

$1,400

chloe's checking account is $500, her savings is $900. she owns a home that has a market value or $98,000, she has furniture and appliances worth $12,000 and a computer and laptop worth $3,300, she has a car worth $12,500 and recently purchased an annuity worth $5,500 and has a retirement account worth $38,550. what's the value of her liquid assets ?

$1,400

ruth has determined the value of her liquids assets are $4,900, the value of her real estate is $128,000, the value of her personal possessions is $57,000, her investment assets are $78,000. she has also determined the value of her current liabilities are $7,700 and the other value of her long term liabilities is $97,000. what's the total value of her debts

$104,700

ella's checking is worth $950 and her savings is worth $1,500. she owns her own home that has a market value of $103,000. her furniture and appliances are worth $9,000 and her laptop is worth $3,200, her car is worth $10,500 and owes $9,000 on her auto loan. she has stock that's worth $5,000 and a retirement account is $40,000. what's the total value of her assets

$173,150

A family with $50,000 in assets and $22,000 of liabilities would have a net worth of

$28,000

in the past month jennifer had an income of $3,000, during the month her net worth declined by $300. if no other financial activities occurred this means jennifer's payments for the month were:

$3,300

list the 4 phases of creating and implementing a budget and describe the details of each phase

1) asses your current situation, recording and reviewing your peer spending/saving/income amounts 2) plan your financial direction, involves steps necessary for planning the budget components 3) implement your budget, maintain a record of your spending go compare to budget amounts 4) evaluate your budget program, review and adjust budget amounts for the future based on changes in household situation, finance, and goals

which one of the following illustrates an insolvent situation?

Assets $40,000; liabilities $60,000

total earnings of a person minus the deductions for taxes and other items is called:

Take home pay

a personal balance sheet reports your personal income and expenditures

false

opportunity costs are only associated with money management decisions involving long-term financial security

false

everett has determined that the amount of money he spends on his mortgage payment, car loan payment, and home insurance payment totals $1,200 every month. what type of expenses has everett determined with this calculation?

fixed expenses

which of the following cash outflows should be listed first on a cash flow statement?

fixed expenses

the kakeibo system, a japanese household finance ledger requires writing down the spending in which of the following categories?

needs and wants, culture (ex books &museum visits), unexpected costs (ex medical & repairs)

alex has decided to put $30 more per week in his savings. he knows this will reduce his ability to go out to eat each week but thinks building his emergency fund is important. this is an example of?

opportunity cost

which of the following are considered to be personal finance statements?

personal balance sheet and cash flow statement

lucas needs to store the title to his car and his military papers, where's the list appropriate place to store this information?

safe deposit box

Improvements in a person's financial position are the result of:

saving current income and investing

if a family planned to spend $400 for food in april but only spent $350, this difference would be referred to as a:

surplus