Chapter 03 Quiz

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

$23,000.

Which of the following presents a summary of income and outflows for a period of time? Group of answer choices

A cash flow statement

Which of the following would be considered a long-term liability?

A mortgage

To determine a person's solvency, which financial document should be consulted?

Balance sheet

In the budgeting process, which of the following is budgeted first?

Emergency fund & savings

Which of the following payments would be considered a variable expense?

Food

Sean Carter needs to store monthly statements from his bank, his credit card company and from his savings and loan. Where is the most appropriate place for Sean to store this information?

His home file cabinet and/or personal computer

Which of the following are considered to be personal financial statements?

Personal balance sheet and cash flow statement

Liabilities are:

amounts owed to others.

Cash and other property with a monetary value are referred to as:

assets

The difference between the amount budgeted and the actual amount received or spent is called a:

budget variance.

A cash flow statement summarizes:

cash receipts and payments for a given period.

Studies reveal that most Americans:

do not have an adequate amount set aside for emergencies.

Payments that do not vary from month to month are ____________ expenses.

fixed

An retirement account is an example of a(n) ____________ asset.

investment

A home file should be used to:

keep financial records for current needs & documents with limited value.

Total earnings of a person minus the deductions for taxes and other items is called:

take-home or net pay.

Which of the following would most likely be stored in a safe-deposit box?

valuables such as rare coins

A personal balance sheet reports:

what you own and what you owe.

Current liabilities differ from long-term liabilities based on:

when the debt is due.