Question 1

Which of the following is not a cash outflow?

Accepted Answer

Salary is not a cash outflow because it is a payment received by an employee for work performed.

Question 2

Use the following items to answer the matching questions below:

-household assets

Accepted Answer

B

Question 3

Use the following items to answer the matching questions below:

-balance sheet

Accepted Answer

The balance sheet is a financial statement that presents a company's financial position at a specific point in time, showing assets, liabilities, and stockholders' equity.

Question 4

The personal cash flow statement measures

Accepted Answer

A personal cash flow statement measures both cash inflows (money received) and cash outflows (money spent), encompassing all aspects of personal financial activity.

Question 5

Use the following items to answer the matching questions below:

-cash flow statement

Accepted Answer

A cash flow statement is a financial statement that measures cash inflows and outflows.

Question 6

A document that shows your cash inflows and cash outflows is called a(n) ________.

Accepted Answer

The answer of A document that shows your cash inflows...

Question 7

Which of the following is not a cash inflow?

Accepted Answer

Car payment is an expense, not a cash inflow. Interest received, dividend income, and salary are all examples of cash inflows.

Question 8

Jim has $1,000 income from his job and $200 stock dividend income this month. This month Jim has rent and utilities of $300 and he spent $300 on groceries and $200 on clothing. What is his cash inflow this month?

Accepted Answer

Jim's cash inflow this month is the total income he received, which is $1,000 from his job plus $200 from stock dividends, totaling $1,200.

Question 9

For most people, the first step in finding where their money goes each month is to correctly assess their true net income.

Accepted Answer

The first step is usually to track spending to understand where their money is currently going, as this provides a baseline for budgeting and identifying areas for adjustment.

Question 10

Use the following items to answer the matching questions below:

-net cash flows

Accepted Answer

The answer of Use the following items to answer the...

Question 11

Net cash flows are the difference between cash inflows and cash outflows and can be either positive or negative.

Accepted Answer

Net cash flows represent the net amount of cash and cash equivalents being transferred into and out of a business. If the inflows exceed the outflows, the net cash flow is positive, and if the outflows exceed the inflows, it is negative.

Question 12

Salary or wages are the only cash inflows for working people.

Accepted Answer

Many working people also receive cash inflows from investments, bonuses, freelance work, or other sources beyond their primary salary or wages.

Question 13

The primary goal of financial planning is to

Accepted Answer

The primary goal of financial planning is to maximize wealth, which involves creating a comprehensive strategy to manage financial resources effectively in order to achieve financial goals and increase overall wealth.

Question 14

Creating a cash flow statement requires that you determine

Accepted Answer

A cash flow statement reflects the cash inflows and outflows from operating activities, thus it includes all cash coming in (A) and cash used for expenses (C). Liabilities (B) are part of the balance sheet, not the cash flow statement.

Question 15

The main source of cash flow for most people is

Accepted Answer

The main source of cash flow for most individuals is typically their salary and wages, as this is the primary way people earn money through employment.

Question 16

Jim has $1,000 of salary and $100 of dividend income this month. This month he also has rent and utilities of $300 and he spent $200 on groceries and $100 on clothing. What is Jim's net cash flow this month?

Accepted Answer

Jim's net cash flow is calculated by subtracting his total expenses from his total income. His total income is $1,000 (salary) + $100 (dividend) = $1,100. His total expenses are $300 (rent and utilities) + $200 (groceries) + $100 (clothing) = $600. Therefore, his net cash flow is $1,100 - $600 = $500.

Question 17

Cash inflows can include

Accepted Answer

All of these options represent forms of cash inflows. Dividends are cash payments from investments, interest income is received from lending money or from interest-bearing accounts, and income generally refers to money received, such as from a job or business operations.

Question 18

The cash flow statement reports a person's or family's

Accepted Answer

The cash flow statement reports a person's or family's current income and payments, detailing how cash flows in and out over a specific period of time.

Question 19

Your cash outflows are equal to your liabilities such as the amount you owe on your car or home.

Accepted Answer

Cash outflows refer to the money that is being spent or leaving your account, such as payments for expenses, and do not equate directly to liabilities, which are obligations or debts you owe regardless of whether they are currently being paid off.

Question 20

When you retire, which of the following will be key sources of cash flow?

Accepted Answer

Interest and dividends from investments and withdrawals from retirement accounts like 401Ks, along with Social Security benefits, are key sources of cash flow for most retirees, as they no longer earn a regular salary or wages.

Quiz 2: Planning With Personal Financial Statements

Which of the following is not a cash outflow?

Use the following items to answer the matching questions below: -household assets

Use the following items to answer the matching questions below: -balance sheet

The personal cash flow statement measures

Use the following items to answer the matching questions below: -cash flow statement

A document that shows your cash inflows and cash outflows is called a(n) ________.

Which of the following is not a cash inflow?

Jim has $1,000 income from his job and $200 stock dividend income this month. This month Jim has rent and utilities of $300 and he spent $300 on groceries and $200 on clothing. What is his cash inflow this month?

For most people, the first step in finding where their money goes each month is to correctly assess their true net income.

Use the following items to answer the matching questions below: -net cash flows

Net cash flows are the difference between cash inflows and cash outflows and can be either positive or negative.

Salary or wages are the only cash inflows for working people.

The primary goal of financial planning is to

Creating a cash flow statement requires that you determine

The main source of cash flow for most people is

Jim has $1,000 of salary and $100 of dividend income this month. This month he also has rent and utilities of $300 and he spent $200 on groceries and $100 on clothing. What is Jim's net cash flow this month?

Cash inflows can include

The cash flow statement reports a person's or family's

Your cash outflows are equal to your liabilities such as the amount you owe on your car or home.

When you retire, which of the following will be key sources of cash flow?