Topic 2 Quiz

d. Money left over after paying for housing, food, and other necessities

Discretionary income equals Select one: a. Gross income b. Take-home pay c. Amount being saved each month d. Money left over after paying for housing, food, and other necessities e. Social security taxes

b. Net worth.

The amount you would have if everything of value would be sold and all debts would be paid in full. Select one: a. Net assets. b. Net worth. c. Total liabilities. d. Total income. e. Budgeted expenses.

c. Balance sheet.

The current financial position of an individual or family is best presented with the use of a(n) Select one: a. Budget. b. Cash flow statement. c. Balance sheet. d. Bank statement. e. Time value of money report.

a. Balance sheet

The document that would be most useful to track your current financial position is Select one: a. Balance sheet b. Cash flow statement c. Budget d. All of the above e. None of the above

NOT C

The number of personal financial records a household has to organize may seem overwhelming. How long should you keep copies of your tax returns and supporting data? Select one: a. Until you receive your refund b. Until the end of the current year c. Three years d. Seven years e. Permanently

b. $23,000

A family with $45,000 in assets and $22,000 of liabilities would have a net worth of Select one: a. $22,000 b. $23,000 c. $41,000 d. $45,000 e. $67,000

d. Items owned and amounts owed.

A personal balance sheet reports Select one: a. Amounts budgeted for spending. b. Income and expenses for a period of time. c. Earnings on savings and investments. d. Items owned and amounts owed. e. Family financial goals.

b. Vacation home

When creating a personal balance sheet, which of the following is a real estate asset? Select one: a. Cash value of life insurance b. Vacation home c. Home computer d. Retirement accounts e. Mutual funds

NOT A also anther unknown d. Retirement account

When creating a personal balance sheet, which of the following is an investment asset? Select one or more: a. Cash value of life insurance b. Checking account c. Possessions in your home d. Retirement account e. Purchasing a vacation property

e. Retirement investments

Which of the following is NOT a liquid asset? Select one: a. Cash withdrawn from an ATM b. Cash value of life insurance c. Checking account balance d. Savings account e. Retirement investments