Personal Finance Ch 5 Review
An example of a liquid asset is _____
A savings account
A disadvantage of using a safe-deposit box for keeping financial documents is that it _____
Can cost $100 a year to rent
An example of a variable expense is _____
Electric bills
A surplus is when more money is spent than is earned or recieved
False
Financial transactions and documents cannot be saved on a password protected computer
False
Real estate is an example of a liquid asset
False
The title to your car is not an example of a personal financial document
False
The total of your fixed and variable expenses is your cash flow
False
You should include bonuses you might get at work when you estimate your income
False
A good budget has all the following characteristics except _____
Inacessibility
A cash flow statement gives you important feedback on your _____
Income and spending patterns
Your net worth goes up when you _____
Pay off previous debts
A savings option many employers offer is ____
Putting paycheck deductions in employee's retirement funds
The first step in planning a budget is _____
Setting financial goals
An example of a current liability is _____
Taxes
A telephone bill is a short term liability
True
Creating a personal balance sheet is a good way to determine your assets and liabilities
True
Insolvency happens when the total of your liabilities is greater than your assets
True
Take home pay is equal to your net salary
True
One use of discretionary income is spending on _____
Videos