PF- Quiz 2

____ is an example of an personal asset. a. Jewelry b. Recreational equipment c. Corporate bond d. Charge account balance e. Auto insurance premium

a. Jewelry

The balance sheet describes a family's wealth a. at a certain point in time. b. as an annual summary. c. as a time period less than one year. d. at a future time. e. none of these

a. at a certain point in time.

The most common budgeting period is a a. week. b. month. c. quarter. d. semi-annually. e. bi-weekly.

b. month.

The balance sheet equation is: a. Total Assets / Total Liabilities = Net Worth. b. Total Assets ´ Total Liabilities = Net Worth. c. Total Assets - Total Liabilities = Net Worth. d. Total Assets + Total Liabilities = Net Worth. e. Total Liabilities - Total Assets = Net Worth.

c. Total Assets - Total Liabilities = Net Worth.

Your ____ is an example of a liquid asset. a. home b. car c. checking account d. charge account e. life insurance cash value

c. checking account

The three parts of your balance sheet are a. income, liabilities, balance. b. assets, expenditures, balance. c. assets, liabilities, balance. d. assets, liabilities, net worth. e. income, liabilities, net worth.

d. assets, liabilities, net worth.

A budget is a a. purchase plan. b. line of credit. c. financial statement. d. detailed financial forecast. e. set of personal financial objectives.

d. detailed financial forecast.

The main purpose of a budget is to a. develop goals. b. develop a financial plan. c. give feedback to the plan. d. monitor and control financial outcomes. e. revise goals.

d. monitor and control financial outcomes.

A cash budget should help you to a. achieve your short-term financial goals. b. implement disciplined spending. c. eliminate impulse spending. d. allocate funds to savings and investments. e. do all of these

e. do all of these

When Phil lists his house on his balance sheet, he should record the a. actual purchase price. b. replacement value. c. insured value. d. sale price. e. fair market value.

e. fair market value.