Finance 2010 Chapter 2

if expected expenditures for food were $1,000 while actual food costs were 750 what would be the variance

250 favorable

personal balance sheet and the cash flow statement come from financial institutions, businesses, or the government T or F

F

how long should records pertaining to property and iinvestments be retained

as long as you own the assets

a personal ____ sheet is also called net worth statement of financial position, reports what you own and what you owe

balance

T or F take-home pay is the same as discretionary income

false, discretionary income is left over after necessities have been paid

where should easy to replace documents such as resumes and lists of financial goals be stored

home filing system and personal computer system

Money management involves financial activities necessary to manage current personal economic resources, while working for the achievement of long-term financial security. T or F

T

money managment is the day-to-day financial activities nec to manage current personal econ resources while working toward long-term financial security T or F

T

net worth is found by subtracting liabilities from assets. T or F

True

how is a cahs surpus/deficit on cahs flows calc?

cash inflows (receipts) less cash outflows (expenditures) during a given period of time

a realistic budget should be

flexible realistic well planned clearly communicated

cash flow is the ___ and ___ of cash during a given period of time

inflow and outflow

Invoices, credit card statements, _____ policies and tax forms are the basis of financial record keeping and personal economic choices.

insurance

financial ratios are guidelines for:

measuring changes in your financial situation

which of the following are normally fixed expenses

mortgage payments, rent, installment loan payments

which of the following are char of good financial goals

realistic, definite time frame, measurable

cash flow statements shows a summary of cash ____ and payments for a given periods such as month or year

receipts

which of the following can help you establish an adequate savings account and emergency fund?

save coins in jar to deposit in savings account write a check each payday to deposit in savings automaticall deposit savings deduced save 5-10% each paycheck

cash___ results when inflows are greater than outflows (expenditures)

surplus

revieing balance sheet on 1/15/2020 that shows an "as of" date of 12/31/2019 and assets of $600,000 and liabilities of $425,000

the net worth is $175,000 as of 12/31/2019

which of the following provide an accurate explanation of net worth? - assets less liabilities -assets sold in 12 months less liabilities owed within the next 12 months - total liabilities less current assets - the amount you would have if you sold the assets and paid off the liabilities

- assets less liabilities - the amount you would have if you sold the assets and paid off the liabilities

take-home pay

Earnings after deductions for taxes and other items; also called disposable income.

1 set financial goals 2 estimate expected income 3 allocate and emergency fund and savings 4 budget known expenses 5 budget estimated expenses 6 record spending amounts and evaluate revisions

^ the order

which of the following are liquid assets

cash value of life insurance savings account cash money market account

which of the following are the common sources of income for most of the people

wages, salaries, and commissions gifts and grants self-employment income amounts received from pensions government payments