Personal Finance Test
the "head of household" filing status is for people who are
B&D (2 answers)
based of the following information, what amount would be subtracted from the bank balance of a checking account reconciliation. outstanding checks 145
145
jamie mcfarland has determine that the value of her liquid assets is 4500, the value of her real estate is 128000, the value of her personal possessions is 62000, and the value of her investment assets is 73000. she has also determined the value of her current liabilities is 7500 and the value of her long term liabilities is 98000. what is Jamies net worth
162000
a saver has 5000 on deposit in an account earning 3% interest. during the year the inflation rate was 5%. after one year what is the buying power of the amount in savings for that person
4900
a family spends 50,000 on living expenses. with an annual inflation rate of 3%, they can expect to pay approximately ____ in 4 years
56,275
the federal deposit insurance corporation provides deposit insurance for
A&C (2 answers)
which of the following presents a summary of income and expenses for a period of time
a cash flow statement
the main goal of personal financial planning is
achieving personal economic satisfaction
which of the following would be a competency commonly associated with successful people
all of the choices are competencies commonly associated with successful people
the rate of return on a savings account is also referred to as
annual percentage yield (APY)
natural abilities that people posses are
aptitidues
items that you own with a monetary worth are referred to as
assets
which of the following are considered to be personal financial statements
balance sheet and cash flow statement
The problem of bankruptcy is associated with poor decisions in the ______________ component of financial planning.
borrowing
liquid or current assets refer to
cash and other items that are easily converted to cash
future value calculations involve
compounding
a tax ______ is an amount subtracted directly from the amount of taxes owed
credit
liabilities are amounts representing
debts
money received by an individual from employment is ____ income
earned
A financial plan is another name for a budget
false
Interest on savings is calculated by multiplying the money amount times the opportunity cost times the annual interest rate.
false
a personal balance sheet reports your income and expenses
false
a screening interview is reserved for only the finalists in a job search
false
developing financial goals is the first step in the financial planning process
false
the purpose of a cover letter is to determine if a company has jobs available
false
time deposit is another term for a checking account
false
the success of a financial plan will be determined by
how resources are used
taxable income is used to compute a person's
income tax
________ risk refers to the danger of lost buying power during times of rising prices
inflation
Kyle beck has interviews with three companies...
interview for specific positions and assess the interview performance
an individual retirement account is an example of a(n) _______ asset
investment
the form 1040 is most helpful to a person who
itemizes deductions
The ability to convert financial resources into usable cash with ease is referred to as
liquidity
the rate that commercial banks, savings and loan associations and credit unions charge their very best customers for a well collateralized loans with sufficient down payment is the
prime rate
for a dependent to qualify as an exemption he or she must
receive more than half of his or her support from the taxpayer
a chronological resume presents personal data based on
reverse time sequence
itemized deductions are recorded on
schedule A
the education section of a resume should include
schools and colleges attended
a checking or saving account at a credit union is called a ______ account
share
when interest rates are rising a person would be best served by
short term savings instruments
tax-deferred employee benefits are
taxed at some future time
a child born on the last day of the year qualifies as a dependent for the entire year
true
a person's net worth is the difference between the value of the items owned and the amounts owed to others
true
a restrictive endorsement may include the words "for deposit only"
true
in most states the state income tax return is based on some aspect of your federal income tax return such as adjusted gross income or taxable income
true
insolvency is a result of having more liabilities than assets
true
real-estate property taxes are a major source of revenue for local governments
true
references are commonly not included on a resume
true
when preparing your bank checking account reconciliation, you realized you entered your automatic utility bill payment in your check register for 40 more that the utility company debited your account. your correcting entry would be a 40 credit in your check register
true
_______ is the point at which retirement contributions made on your behalf by the company belong to you even if you no longer work for the company
vesting