Question 1

The Hernandez family budgets $420 a month for food. Last month they spent $413, which creates a:

Accepted Answer

The family spent less than their budgeted amount, creating a surplus of $7.

Question 2

Katherine Kocher has determined the following information about her own financial situation. Her checking account is worth $850 and her savings account is worth $1,200. She owns her own home that has a market value of $98,000. She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,300. She has a car worth $12,500. She has recently purchased a 2-year certificate of deposit worth $5,500 and she has a retirement account worth $38,550. What is the value of her investment assets?

Accepted Answer

Investment assets include the 2-year certificate of deposit and the retirement account, which have a combined value of $44,050. The other assets listed are not considered investment assets.

Question 3

Jamie McFarland has determined that the value of her liquid assets is $4,500, the value of her real estate is $128,000, the value of her personal possessions is $62,000, and the value of her investment assets is $73,000. She has also determined the value of her current liabilities is $7,500 and the value of her long term liabilities is $98,000. What is the total value of her debts?

Accepted Answer

The answer of Jamie McFarland has determined that the value...

Question 4

Katherine Kocher has determined the following information about her own financial situation. Her checking account is worth $850 and her savings account is worth $1,200. She owns her own home that has a market value of $98,000. She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,300. She has a car worth $12,500. She has recently purchased a 2-year certificate of deposit worth $5,500 and she has a retirement account worth $38,550. What is the value of her personal assets?

Accepted Answer

The answer of Katherine Kocher has determined the following information...

Question 5

When preparing her monthly budget, Marge Kent has a total spending allowance of $4,600. Each month she pays $1,200 in rent, $60 for cable television and Internet service, and $240 for her auto loan. What percentage of her budget goes for these fixed expenses?

Accepted Answer

The answer of When preparing her monthly budget, Marge Kent...

Question 6

Katherine Kocher has determined the following information about her own financial situation. Her checking account is worth $850 and her savings account is worth $1,200. She owns her own home that has a market value of $98,000. She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,300. She has a car worth $12,500. She has recently purchased a 2-year certificate of deposit worth $5,500 and she has a retirement account worth $38,550. What is the value of her real estate assets?

Accepted Answer

The value of Katherine's real estate assets is equal to the market value of her home, which is stated to be $98,000. Therefore, the best choice is B.

Question 7

Sean Carter needs to store monthly statements from his bank, his credit card company and from his savings and loan. Where is the most appropriate place for Sean to store this information?

Accepted Answer

A home file cabinet is a secure and easily accessible place for storing important documents like monthly statements.

Question 8

Katherine Kocher has determined the following information about her own financial situation. Her checking account is worth $850 and her savings account is worth $1,200. She owns her own home that has a market value of $98,000. She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,300. She has a car worth $12,500. She has recently purchased a 2-year certificate of deposit worth $5,500 and she has a retirement account worth $38,550. What is the value of her liquid assets?

Accepted Answer

Liquid assets are those that can be easily converted into cash. These include checking and savings accounts, certificates of deposit, and retirement accounts. Therefore, the value of Katherine's liquid assets would be:
$850 (checking account) + $1,200 (savings account) + $5,500 (certificate of deposit) + $38,550 (retirement account) = $46,100
Therefore, the best choice is A, $2,050, as none of the other choices match the calculated value of the liquid assets.

Question 9

Patricia McDonald has determined the following information about her own financial situation. Her checking account is worth $850 and her savings account is worth $1,200. She owns her own home that has a market value of $98,000. She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,300. She has a car worth $12,500 and owes $7,800 on her auto loan. She has also purchased some stock worth $5,500 and she has a retirement account worth $38,550. What is the total value of her assets?

Accepted Answer

To find the total value of her assets, we add up the values of all her possessions: 
Checking account: $850 
Savings account: $1,200 
Home: $98,000 
Furniture and appliances: $12,000 
Computer and laptop: $3,300 
Car: $12,500 
Stock: $5,500 
Retirement account: $38,550

Total assets = $850 + $1,200 + $98,000 + $12,000 + $3,300 + $12,500 + $5,500 + $38,550 = $171,900

Therefore, the best choice is E, $171,900, because it is the total value of all her assets.

Question 10

Jonathan Wynn has developed a budget that he follows each month. Jonathan has an envelope for each type of expenditure. After he cashes his paycheck, he puts the amount of cash in each envelope that he plans to spend on that category each month. What type of budget has Jonathan created?

Accepted Answer

Jonathan has created a physical budget in the form of envelopes for each type of expenditure.

Question 11

This month, Ken Grossman has cash inflows of $3,100 and cash outflows of $2,950, resulting in a

Accepted Answer

A surplus occurs when inflows are greater than outflows, so options D and E can be eliminated. A balanced budget occurs when inflows and outflows are equal, so option A can be eliminated. A deficit occurs when outflows are greater than inflows, so option C can also be eliminated. Therefore, the correct answer is B, which indicates a surplus of $150.

Question 12

Patricia McDonald has determined that the value of her liquid assets is $4,500, the value of her real estate is $128,000, the value of her personal possessions is $62,000, and the value of her investment assets is $73,000. She has also determined the value of her current liabilities is $7,500 and the value of her long term liabilities is $98,000. What is Patricia's net worth?

Accepted Answer

The answer of Patricia McDonald has determined that the value...

Question 13

Samuel Jackson has developed a budget that he follows each month. This is a budget that he keeps in his head. He does not write anything down, nor does he use a computer to keep track of this budget. What type of budget has Samuel created?

Accepted Answer

Samuel Jackson has created a mental budget as he keeps it in his head without writing anything down or using a computer.

Question 14

Jamie McFarland has determined that the value of her liquid assets is $4,500, the value of her real estate is $108,000, the value of her personal possessions is $62,000 and the value of her investment assets is $73,000. She has also determined the value of her current liabilities is $9,500 and the value of her long term liabilities is $68,000. What is Jamie's net worth?

Accepted Answer

The answer of Jamie McFarland has determined that the value...

Question 15

Kathy Stumbaugh has determined that the value of her assets is $46,000 and the value of her debts is $32,000. The difference between these two is $14,000. The $14,000 could be referred to as her:

Accepted Answer

The $14,000 difference between assets and debts is commonly referred to as net worth, which represents the amount of wealth a person has accumulated.

Question 16

Katherine Kocher has determined the following information about her own financial situation. Her checking account is worth $850 and her savings account is worth $1,200. She owns her own home that has a market value of $98,000. She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,300. She has a car worth $12,500. She has recently purchased a 2-year certificate of deposit worth $5,500 and she has a retirement account worth $38,550. What is the total value of her assets?

Accepted Answer

The total value of her assets is calculated by adding all her assets: $850 (checking) + $1,200 (savings) + $98,000 (home) + $12,000 (furniture and appliances) + $3,300 (computer and laptop) + $12,500 (car) + $5,500 (certificate of deposit) + $38,550 (retirement account) = $171,900.

Question 17

A person has $1,250 in liabilities, monthly savings of $200, and monthly gross income of $2,500. What is the person's savings ratio?

Accepted Answer

The answer of A person has $1,250 in liabilities, monthly...

Question 18

A family has a net worth of $156,000 and liabilities of $167,000, what is the amount of their assets?

Accepted Answer

The formula for net worth is: 
Net worth = Assets - Liabilities

We are given:
Net worth = $156,000
Liabilities = $167,000

Using the formula, we can rearrange it to solve for assets:

Assets = Net worth + Liabilities

Assets = $156,000 + $167,000

Assets = $323,000

Therefore, the amount of their assets is $323,000.

Question 19

Jamie McFarland has determined that the value of her liquid assets is $4,500, the value of her real estate is $128,000, the value of her personal possessions is $62,000, and the value of her investment assets is $73,000. She has also determined the value of her current liabilities is $7,500 and the value of her long term liabilities is $98,000. What is the total value of her assets?

Accepted Answer

The answer of Jamie McFarland has determined that the value...

Question 20

Jerry Allison needs to store the title to his car and his house. Where is the most appropriate place for Jerry to store this information?

Accepted Answer

The most secure option out of the given choices is a safe deposit box at a bank. This ensures that the documents are protected from theft and damage, and only accessible by the owner with proper identification. Storing important documents at home or on a personal computer runs the risk of loss due to accidents or theft. Storing them at a friend's house is also not advisable as it is not as secure or reliable as a bank.

Quiz 3: Money Management Strategy: Financial Statements and Budgeting

The Hernandez family budgets $420 a month for food. Last month they spent $413, which creates a:

When preparing her monthly budget, Marge Kent has a total spending allowance of $4,600. Each month she pays $1,200 in rent, $60 for cable television and Internet service, and $240 for her auto loan. What percentage of her budget goes for these fixed expenses?

Sean Carter needs to store monthly statements from his bank, his credit card company and from his savings and loan. Where is the most appropriate place for Sean to store this information?

Jonathan Wynn has developed a budget that he follows each month. Jonathan has an envelope for each type of expenditure. After he cashes his paycheck, he puts the amount of cash in each envelope that he plans to spend on that category each month. What type of budget has Jonathan created?

This month, Ken Grossman has cash inflows of $3,100 and cash outflows of $2,950, resulting in a

Samuel Jackson has developed a budget that he follows each month. This is a budget that he keeps in his head. He does not write anything down, nor does he use a computer to keep track of this budget. What type of budget has Samuel created?

Kathy Stumbaugh has determined that the value of her assets is $46,000 and the value of her debts is $32,000. The difference between these two is $14,000. The $14,000 could be referred to as her:

A person has $1,250 in liabilities, monthly savings of $200, and monthly gross income of $2,500. What is the person's savings ratio?

A family has a net worth of $156,000 and liabilities of $167,000, what is the amount of their assets?

Jerry Allison needs to store the title to his car and his house. Where is the most appropriate place for Jerry to store this information?