Finance 101 Exam 1 T/F

Lakukan tugas rumah & ujian kamu dengan baik sekarang menggunakan Quizwiz!

A liquid financial asset can be quickly converted into cash, but there is often a large loss of value as a result of the quick conversion to cash.

False

Capitalized cost on an auto lease is similar to the interest rate on a loan.

False

Fixed automobile costs increase as the number of miles driven increase.

False

Money I loaned to a friend is a liability on my balance sheet.

False

Only the current month's payment on your mortgage loans would be listed on the balance sheet as a liability

False

The rate of return on liquid assets is relatively high compared to other types of investments.

False

A cash budget has value only if you use it, review it regularly, and keep careful records of income and expenses.

True

A cash deficit decreases net worth.

True

A charge made on your credit card becomes a liability as soon as the charge is incurred.

True

A closed-end automobile lease is the most popular type of lease.

True

A husband and wife would be the only couple combination that could file a joint return

True

A taxpayer can write off a maximum of $3,000 of capital losses in one tax year.

True

Assets purchased on credit should be included on the asset side of the balance sheet.

True

Bank credit card cash advances will begin accruing interest charges immediately.

True

Gasoline is a variable cost of automobile ownership.

True

Home equity loans are one of the least expensive forms of consumer.

True

If you listed your gross salary in the income portion of the budget, the expenditures section must include income taxes and social security.

True

Low-balling is a sales technique where the salesperson quotes a low price for a car to get you to make an offer, and negotiates the price upward prior to signing the sales agreement.

True

Mortgage interest and paid home property taxes are both itemized deduction items.

True

One can and should check his credit bureau file regularly.

True

One's average tax rate is typically lower than one's marginal tax rate.

True

Personal exemptions are tax deductions based on the number of taxpayers and dependents in the taxpayer's household.

True

Revolving credit lines are often accessed by writing checks.

True

The Truth in Savings Act was designed to help consumers compare terms and costs of banking products.

True

The annual percentage yield (APY) formula considers compounding when determining an interest rate.

True

The main business of an S&L is to provide home mortgage and home improvement loans.

True

When negotiating either an auto purchase or a lease, do not reveal what you can afford to pay per month.

True

When preparing a cash budget, estimating expenses using actual expenses from previous years and by tracking current expenses makes the task easier.

True

You should itemize deductions when total itemized deductions exceed the standard deduction.

True

You should not talk with the car dealer about a trade-in until after you have negotiated the final price on the car you are purchasing.

True


Set pelajaran terkait

compara las diferencias entre la autarquia, el mercantilismo, y el libre comercio

View Set