Personal Finance Ch 1-4 Quiz Review For Exam 1 UCO
actual expenses are greater than planned expenses
A budget deficit would result when a person's or family's
requires continued training and offers a clear path for occupational growth
A career is defined as a commitment to a profession that
current income and payments
A cash flow statement reports a person's or a family's
True
A chronological résumé presents a person's education, work experience, and other information in a reverse time-sequence.
False
A family with $45,000 in assets and $22,000 of liabilities would have a net worth of $20,000.
a financial plan.
A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends a direction for your financial activities is
False
A home file should be used for documents that require maximum security.
earn money
A job is an employment position that is obtained mainly to
counselor for a less experienced person in a career field
A mentor is an experienced employee who serves as a teacher and
False
A person would use the future value of a single amount computation to determine current value of a desired amount for the future.
False
A person's net worth is computed by subtracting total assets from total liabilities.
amounts owed
A personal balance sheet presents items owned and
true
A tax credit of $50 for a person in a 28 percent tax bracket would reduce a person's taxes by $50.
a tax-deferred benefit
A tax-exempt employee benefit is usually more advantageous than
tax-deferred retirement plans
A traditional IRA, Keogh plan, and 401(k) plan are examples of
competencies commonly associated with successful people
An ability to work well with others in a variety of settings and a desire to do tasks better than they have to be done are
individual's property at the time of his or her death
An estate tax is imposed on the value of an
False
An undergraduate degree would likely lead to the most added income over an individual's working career.
long term goal
As Jean Tyler plans to set aside funds for her young children's college education shes is setting a
personal financial statements
Balance sheets and cash flow statements are considered to be
true
During the past month, Jennifer Ernet had income of $3,000. During the month, her net worth declined by $200. If no other financial activities occurred, this means Jennifer's payments for the month were $3,200.
are major influences on salary
Education, training, and the demands for a person's skills
False
Federal tax-exempt employee benefits are taxed at some future time
false
For a dependent to qualify as an exemption, he or she must receive more than two thirds of his or her support from the taxpayer.
False
Future value calculations involve discounting.
False
Government regulations are an element of corporate culture?
True
If a person deposited $50 a month for 6 years earning 8 percent, this would involve a future value of a series of deposits computation.
False
If expenses for a month are greater than income, an increase in net worth will result.
a person should develop a résumé and cover letter
In the career planning process, after identifying specific job opportunities,
lost buying power during times of rising prices
Inflation risk refers to the danger of
to deduct from adjusted gross income
Itemized deductions are expenses that a taxpayer is allowed
cash
Liquid assets refer to cash and other items that are easily converted to
False
Mathematical abilities, problem-solving skills, and physical dexterity are examples of attitudes.
false
Mike Hansen has adjusted gross income of $28,000. During the year, Mike decided he needed a larger home. He purchased a home on a golf course in the same town as his first home. Mike incurred $7,500 in moving expenses. He can deduct $7,500 from adjusted gross income.
false
Money received by an individual for personal effort is classified as adjusted gross income.
investment income
Money received in the form of dividends or interest is classified as
obtaining and updating career information and job possibilities
Networking is the process of making and using contacts in the business world for
by making a choice
Opportunity cost refers to what a person gives up
financial decisions
Opportunity costs refer to trade-offs associated with
fixed expenses
Payments that do not vary from month to month are
adjusted gross income
Reductions from gross income for such items as individual retirement account contributions and alimony payments will result in
true
Several courses of appeal are available to taxpayers who disagree with an IRS ruling on their tax return audit.
This problem refers to inflation risk.
Some savings and investment choices have the potential for higher earnings. However, these may also be difficult to convert to cash when you need the funds.
deductions for taxes and other items
Take-home pay is a person's earnings after
reduce one's taxes
Tax avoidance is defined as the use of legitimate methods to
false
The "head of household" filing status is for people who are married and have dependent children.
False
The financial planning process is complete once you implement your financial plan.
analyze your current personal and financial situation
The first step of the financial planning process is to
industrial trend that could affect the job market
The increased use of computers in manufacturing is an example of an
supply and demand
The main economic influence that determines prices is
achieving personal economic satisfaction
The main goal of personal financial planning is
funding government programs
The main purpose of taxes is to generate revenue for
false
The principal purpose of taxes is to control economic conditions.
False
The purpose of a cover letter is to determine if a company has jobs available.
land and buildings at some point in time
The real estate property tax is based on the value of
age, financial needs, and family situation is called the adult life cycle
The stages that an individual goes through based on
amount of money as a result of interest
The time value of money refers to increases in an
net worth
The value of items owned minus the amounts owed to others equals
false
With an inflation rate of 9 percent, prices would double in about 3 years.
False
Your monthly electric bill would be considered a fixed expense.