FIN 4100 Chapter 3 Questions

at the actual or estimated current asset of the value

How should the assets you own be reported in your personal balance sheet?

List your liabilities

According to the video, what is the second step in preparing a personal balance sheet?

Surplus; $66

The Morrison family of six budgets $600 a month for food. This month the family spends $534 on food expenses. For this month, the Morrison family has a ___________ of $____.

Current

The __________________ ratio compares your liquid assets to your current liabilities.

Attain your financial goals, spend money wisely, make sure you within your income budget

According to the end of the video, what is the goal of budgeting?

deficit

According to the video, a (n) ____________ is the amount by which actual spending exceeds planned spending.

receipts for small non-tax deductible purchases and receipts for expired warranties

According to the video, what can be thrown in a wastebasket?

Safe deposit box or fire proof safe

Bailey is currently learning about the proper places to keep personal financial records in one of her classes in college. Where should Bailey tell her parents to keep her birth certificate, their marriage license, and mortgage documents for their house?

8.90%

Derek has liquid assets of $4,450 and he saves $615 a month. His current liabilities are equal to $1,750 and monthly credit payments of $425. Derek's gross income is $5,900 each month and a take-home pay of $4,775. What is Derek's debt-payments ratio?

home file

A ______________________ should be used to keep records that you need on a regular basis and documents with limited value.

$95,021

Max and Lucille are currently preparing a personal balance sheet. Their total assets are equal to $159,788 and total liabilities are equal to $64,767. What is Max and Lucille's net worth?

8.85%

Meredith saves $575 a month and her gross income is $6,500 each month. Meredith's liquid assets are equal to $4,000 and her current liabilities are equal to $1,200. Her net worth is $65,000. What is Meredith's savings ratio?