Question 1

Judy has cash inflows of $3,000 for the month of June.Her expenses or cash outflows were $4,000.What is her net cash flow? List two options for Judy to meet her financial obligations in June.What is the effect (increase or decrease)of these options on her assets and liabilities?

Accepted Answer

The answer of Judy has cash inflows of $3,000 for...

Question 2

If you sell stock from your portfolio to pay off your car loan,your debt ratio of 0.5 will

Accepted Answer

Selling stock from your portfolio to pay off your car loan will decrease your debt ratio because it reduces the amount of debt you have (the car loan), while keeping your assets (the stock) the same. A lower debt ratio is generally seen as a positive financial indicator.

Question 3

The cash in your wallet,your checking account balance,and your savings account comprise your ________ assets.

Accepted Answer

The answer of The cash in your wallet,your checking account...

Question 4

Paying off a credit card with cash will have the following effect on net worth.

Accepted Answer

Paying off a credit card with cash decreases liabilities (credit card debt) and decreases assets (cash) by the same amount, resulting in no change to net worth.

Question 5

If your current debt to asset ratio is 50%,which of the following will increase it?

Accepted Answer

The answer of If your current debt to asset ratio...

Question 6

List three components of your personal balance sheet and two components of your income statement.

Accepted Answer

The answer of List three components of your personal balance...

Question 7

If Jo Ann had $4,000 in liquid assets and $1,000 in current liabilities,she would have a liquidity ratio of

Accepted Answer

The liquidity ratio is calculated by dividing liquid assets by current liabilities. So, $4,000 / $1,000 = 4.0.

Question 8

If you have current assets of $20,000 and current liabilities of $10,000,then you
(a)have a current liquidity ratio of 2.
(b)are in poor shape with a liquidity ratio of 0.5.
(c)may have trouble paying your bills depending on their due dates.
(d)are overextended by $10,000

Accepted Answer

The answer of If you have current assets of $20,000...

Question 9

If you save the same dollar amount from each paycheck during your career as your income increases,your savings rate will

Accepted Answer

As your income increases but the amount you save remains constant, the percentage of your income that you save (savings rate) will decrease.

Question 10

Jerry has assets of $200,000,a net worth of $150,000,and an annual income of $100,000.What are Jerry's liabilities?
(a)$100,000
(b)$250,000
(c)$50,000
(d)$450,000

Accepted Answer

The answer of Jerry has assets of $200,000,a net worth...

Question 11

Paying cash for an Alaskan cruise would

Accepted Answer

Paying cash for an Alaskan cruise would decrease assets because cash, an asset, is being used to pay for the cruise, and there is no corresponding increase in another asset category.

Question 12

Which of the following will not increase your liquidity ratio?

Accepted Answer

The answer of Which of the following will not increase...

Question 13

Jennifer has assets of $100,000 and $10,000 of debt.She could

Accepted Answer

Jennifer's debt ratio is low because her debt is only 10% of her assets, which generally indicates she has the capacity to borrow more money.

Question 14

A low liquidity ratio means

Accepted Answer

A low liquidity ratio means that the company may have trouble paying its current bills because it has little or no liquid assets available to cover its debts. The other options - A, B, and D - are not consistent with a low liquidity ratio.

Question 15

In the balance sheet,a(n)________ in assets ________ net worth.

Accepted Answer

The answer of In the balance sheet,a(n)________ in assets ________...

Question 16

If your monthly disposable income equals $1,500 and you currently save $500/month,your savings rate is ________.

Accepted Answer

The answer of If your monthly disposable income equals $1,500...

Question 17

Determine if the following are liquid assets or household assets by placing an L or H beside the following.
________ Car
________ Home
________ Checking account
________ Furniture
________ Cash
________ Savings account

Accepted Answer

The answer of Determine if the following are liquid assets...

Question 18

The current financial position of an individual or family is best presented with the use of a

Accepted Answer

A balance sheet provides a snapshot of an individual's or family's financial position at a particular point in time, showing what they own (assets) and what they owe (liabilities), which helps in understanding their net worth.

Question 19

Your current liquidity ratio is 2.0.If you take money out of your savings account to pay off a credit card your liquidity ratio will

Accepted Answer

The answer of Your current liquidity ratio is 2.0.If you...

Question 20

Nancy has $40,000 of annual disposable income and saves $8,000 a year.Her savings rate is

Accepted Answer

The answer of Nancy has $40,000 of annual disposable income...

Quiz 2: Planning With Personal Financial Statements

Judy has cash inflows of $3,000 for the month of June.Her expenses or cash outflows were $4,000.What is her net cash flow? List two options for Judy to meet her financial obligations in June.What is the effect (increase or decrease)of these options on her assets and liabilities?

If you sell stock from your portfolio to pay off your car loan,your debt ratio of 0.5 will

The cash in your wallet,your checking account balance,and your savings account comprise your ________ assets.

Paying off a credit card with cash will have the following effect on net worth.

If your current debt to asset ratio is 50%,which of the following will increase it?

List three components of your personal balance sheet and two components of your income statement.

If Jo Ann had $4,000 in liquid assets and $1,000 in current liabilities,she would have a liquidity ratio of

If you have current assets of $20,000 and current liabilities of $10,000,then you (a)have a current liquidity ratio of 2. (b)are in poor shape with a liquidity ratio of 0.5. (c)may have trouble paying your bills depending on their due dates. (d)are overextended by $10,000

If you save the same dollar amount from each paycheck during your career as your income increases,your savings rate will

Jerry has assets of $200,000,a net worth of $150,000,and an annual income of $100,000.What are Jerry's liabilities? (a)$100,000 (b)$250,000 (c)$50,000 (d)$450,000

Paying cash for an Alaskan cruise would

Which of the following will not increase your liquidity ratio?

Jennifer has assets of $100,000 and $10,000 of debt.She could

A low liquidity ratio means

In the balance sheet,a(n) in assets net worth.

If your monthly disposable income equals $1,500 and you currently save $500/month,your savings rate is ________.

Determine if the following are liquid assets or household assets by placing an L or H beside the following. Car Home Checking account Furniture Cash Savings account

The current financial position of an individual or family is best presented with the use of a

Your current liquidity ratio is 2.0.If you take money out of your savings account to pay off a credit card your liquidity ratio will

Nancy has $40,000 of annual disposable income and saves $8,000 a year.Her savings rate is

Quiz 2: Planning With Personal Financial Statements

Judy has cash inflows of $3,000 for the month of June.Her expenses or cash outflows were $4,000.What is her net cash flow? List two options for Judy to meet her financial obligations in June.What is the effect (increase or decrease)of these options on her assets and liabilities?

If you sell stock from your portfolio to pay off your car loan,your debt ratio of 0.5 will

The cash in your wallet,your checking account balance,and your savings account comprise your ________ assets.

Paying off a credit card with cash will have the following effect on net worth.

If your current debt to asset ratio is 50%,which of the following will increase it?

List three components of your personal balance sheet and two components of your income statement.

If Jo Ann had $4,000 in liquid assets and $1,000 in current liabilities,she would have a liquidity ratio of

If you have current assets of $20,000 and current liabilities of $10,000,then you (a)have a current liquidity ratio of 2. (b)are in poor shape with a liquidity ratio of 0.5. (c)may have trouble paying your bills depending on their due dates. (d)are overextended by $10,000

If you save the same dollar amount from each paycheck during your career as your income increases,your savings rate will

Jerry has assets of $200,000,a net worth of $150,000,and an annual income of $100,000.What are Jerry's liabilities? (a)$100,000 (b)$250,000 (c)$50,000 (d)$450,000

Paying cash for an Alaskan cruise would

Which of the following will not increase your liquidity ratio?

Jennifer has assets of $100,000 and $10,000 of debt.She could

A low liquidity ratio means

In the balance sheet,a(n) ________ in assets ________ net worth.

If your monthly disposable income equals $1,500 and you currently save $500/month,your savings rate is ________.

Determine if the following are liquid assets or household assets by placing an L or H beside the following. ________ Car ________ Home ________ Checking account ________ Furniture ________ Cash ________ Savings account

The current financial position of an individual or family is best presented with the use of a

Your current liquidity ratio is 2.0.If you take money out of your savings account to pay off a credit card your liquidity ratio will

Nancy has $40,000 of annual disposable income and saves $8,000 a year.Her savings rate is

In the balance sheet,a(n) in assets net worth.

Determine if the following are liquid assets or household assets by placing an L or H beside the following. Car Home Checking account Furniture Cash Savings account