Personal Finance Ch 1-4 Quiz Review For Exam 1 UCO

actual expenses are greater than planned expenses

A budget deficit would result when a person's or family's

requires continued training and offers a clear path for occupational growth

A career is defined as a commitment to a profession that

current income and payments

A cash flow statement reports a person's or a family's

True

A chronological résumé presents a person's education, work experience, and other information in a reverse time-sequence.

False

A family with $45,000 in assets and $22,000 of liabilities would have a net worth of $20,000.

a financial plan.

A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends a direction for your financial activities is

False

A home file should be used for documents that require maximum security.

earn money

A job is an employment position that is obtained mainly to

counselor for a less experienced person in a career field

A mentor is an experienced employee who serves as a teacher and

False

A person would use the future value of a single amount computation to determine current value of a desired amount for the future.

False

A person's net worth is computed by subtracting total assets from total liabilities.

amounts owed

A personal balance sheet presents items owned and

true

A tax credit of $50 for a person in a 28 percent tax bracket would reduce a person's taxes by $50.

a tax-deferred benefit

A tax-exempt employee benefit is usually more advantageous than

tax-deferred retirement plans

A traditional IRA, Keogh plan, and 401(k) plan are examples of

competencies commonly associated with successful people

An ability to work well with others in a variety of settings and a desire to do tasks better than they have to be done are

individual's property at the time of his or her death

An estate tax is imposed on the value of an

False

An undergraduate degree would likely lead to the most added income over an individual's working career.

long term goal

As Jean Tyler plans to set aside funds for her young children's college education shes is setting a

personal financial statements

Balance sheets and cash flow statements are considered to be

true

During the past month, Jennifer Ernet had income of $3,000. During the month, her net worth declined by $200. If no other financial activities occurred, this means Jennifer's payments for the month were $3,200.

are major influences on salary

Education, training, and the demands for a person's skills

False

Federal tax-exempt employee benefits are taxed at some future time

false

For a dependent to qualify as an exemption, he or she must receive more than two thirds of his or her support from the taxpayer.

False

Future value calculations involve discounting.

False

Government regulations are an element of corporate culture?

True

If a person deposited $50 a month for 6 years earning 8 percent, this would involve a future value of a series of deposits computation.

False

If expenses for a month are greater than income, an increase in net worth will result.

a person should develop a résumé and cover letter

In the career planning process, after identifying specific job opportunities,

lost buying power during times of rising prices

Inflation risk refers to the danger of

to deduct from adjusted gross income

Itemized deductions are expenses that a taxpayer is allowed

cash

Liquid assets refer to cash and other items that are easily converted to

False

Mathematical abilities, problem-solving skills, and physical dexterity are examples of attitudes.

false

Mike Hansen has adjusted gross income of $28,000. During the year, Mike decided he needed a larger home. He purchased a home on a golf course in the same town as his first home. Mike incurred $7,500 in moving expenses. He can deduct $7,500 from adjusted gross income.

false

Money received by an individual for personal effort is classified as adjusted gross income.

investment income

Money received in the form of dividends or interest is classified as

obtaining and updating career information and job possibilities

Networking is the process of making and using contacts in the business world for

by making a choice

Opportunity cost refers to what a person gives up

financial decisions

Opportunity costs refer to trade-offs associated with

fixed expenses

Payments that do not vary from month to month are

adjusted gross income

Reductions from gross income for such items as individual retirement account contributions and alimony payments will result in

true

Several courses of appeal are available to taxpayers who disagree with an IRS ruling on their tax return audit.

This problem refers to inflation risk.

Some savings and investment choices have the potential for higher earnings. However, these may also be difficult to convert to cash when you need the funds.

deductions for taxes and other items

Take-home pay is a person's earnings after

reduce one's taxes

Tax avoidance is defined as the use of legitimate methods to

false

The "head of household" filing status is for people who are married and have dependent children.

False

The financial planning process is complete once you implement your financial plan.

analyze your current personal and financial situation

The first step of the financial planning process is to

industrial trend that could affect the job market

The increased use of computers in manufacturing is an example of an

supply and demand

The main economic influence that determines prices is

achieving personal economic satisfaction

The main goal of personal financial planning is

funding government programs

The main purpose of taxes is to generate revenue for

false

The principal purpose of taxes is to control economic conditions.

False

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

land and buildings at some point in time

The real estate property tax is based on the value of

age, financial needs, and family situation is called the adult life cycle

The stages that an individual goes through based on

amount of money as a result of interest

The time value of money refers to increases in an

net worth

The value of items owned minus the amounts owed to others equals

false

With an inflation rate of 9 percent, prices would double in about 3 years.

False

Your monthly electric bill would be considered a fixed expense.