Personal Finance Test

the "head of household" filing status is for people who are

B&D (2 answers)

based of the following information, what amount would be subtracted from the bank balance of a checking account reconciliation. outstanding checks 145

145

jamie mcfarland has determine that the value of her liquid assets is 4500, the value of her real estate is 128000, the value of her personal possessions is 62000, and the value of her investment assets is 73000. she has also determined the value of her current liabilities is 7500 and the value of her long term liabilities is 98000. what is Jamies net worth

162000

a saver has 5000 on deposit in an account earning 3% interest. during the year the inflation rate was 5%. after one year what is the buying power of the amount in savings for that person

4900

a family spends 50,000 on living expenses. with an annual inflation rate of 3%, they can expect to pay approximately ____ in 4 years

56,275

the federal deposit insurance corporation provides deposit insurance for

A&C (2 answers)

which of the following presents a summary of income and expenses for a period of time

a cash flow statement

the main goal of personal financial planning is

achieving personal economic satisfaction

which of the following would be a competency commonly associated with successful people

all of the choices are competencies commonly associated with successful people

the rate of return on a savings account is also referred to as

annual percentage yield (APY)

natural abilities that people posses are

aptitidues

items that you own with a monetary worth are referred to as

assets

which of the following are considered to be personal financial statements

balance sheet and cash flow statement

The problem of bankruptcy is associated with poor decisions in the ______________ component of financial planning.

borrowing

liquid or current assets refer to

cash and other items that are easily converted to cash

future value calculations involve

compounding

a tax ______ is an amount subtracted directly from the amount of taxes owed

credit

liabilities are amounts representing

debts

money received by an individual from employment is ____ income

earned

A financial plan is another name for a budget

false

Interest on savings is calculated by multiplying the money amount times the opportunity cost times the annual interest rate.

false

a personal balance sheet reports your income and expenses

false

a screening interview is reserved for only the finalists in a job search

false

developing financial goals is the first step in the financial planning process

false

the purpose of a cover letter is to determine if a company has jobs available

false

time deposit is another term for a checking account

false

the success of a financial plan will be determined by

how resources are used

taxable income is used to compute a person's

income tax

________ risk refers to the danger of lost buying power during times of rising prices

inflation

Kyle beck has interviews with three companies...

interview for specific positions and assess the interview performance

an individual retirement account is an example of a(n) _______ asset

investment

the form 1040 is most helpful to a person who

itemizes deductions

The ability to convert financial resources into usable cash with ease is referred to as

liquidity

the rate that commercial banks, savings and loan associations and credit unions charge their very best customers for a well collateralized loans with sufficient down payment is the

prime rate

for a dependent to qualify as an exemption he or she must

receive more than half of his or her support from the taxpayer

a chronological resume presents personal data based on

reverse time sequence

itemized deductions are recorded on

schedule A

the education section of a resume should include

schools and colleges attended

a checking or saving account at a credit union is called a ______ account

share

when interest rates are rising a person would be best served by

short term savings instruments

tax-deferred employee benefits are

taxed at some future time

a child born on the last day of the year qualifies as a dependent for the entire year

true

a person's net worth is the difference between the value of the items owned and the amounts owed to others

true

a restrictive endorsement may include the words "for deposit only"

true

in most states the state income tax return is based on some aspect of your federal income tax return such as adjusted gross income or taxable income

true

insolvency is a result of having more liabilities than assets

true

real-estate property taxes are a major source of revenue for local governments

true

references are commonly not included on a resume

true

when preparing your bank checking account reconciliation, you realized you entered your automatic utility bill payment in your check register for 40 more that the utility company debited your account. your correcting entry would be a 40 credit in your check register

true

_______ is the point at which retirement contributions made on your behalf by the company belong to you even if you no longer work for the company

vesting