Question 1

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-A deficit on your income and expense statement will have [an | no] effect on your personal balance sheet.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 2

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-A(n)[auto loan balance | insurance premium] would be an example of a current liability.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 3

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The total amount of salary you earn before taxes are deducted is called your [gross | net] pay.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 4

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-[Medical expenses | Rent payments] would be more difficult to estimate for the coming year.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 5

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-A [house | certificate of deposit] is an example of a tangible asset.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 6

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-When your assets exceed your liabilities,you are [saving | solvent].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 7

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Another term sometimes used for net worth is [collateral | equity].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 8

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-If you pay off your debt but make no changes in your assets,your net worth will [increase | decrease].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 9

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-A [savings account | retirement account] would be an example of a liquid asset.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 10

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-You originally paid $6,000 for your car,which has a current market value of $4,000,and the balance of the loan against it is now $2,500.You will list this car in the assets section of your personal balance sheet at [$6,000 | $4,000].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 11

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-You bought a $500 stereo on the installment plan and made two payments of $75 during the year.On your income and expense statement for the year,you will show an expense of [$150 | $500].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 12

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-When your liabilities exceed your assets,you are [solvent | insolvent].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 13

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-A liability would be listed on a personal balance sheet as the [amount originally borrowed | amount of the next loan payment to be made | none of these].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 14

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Investment assets are required to [earn a return | provide a service].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 15

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-A personal balance sheet provides a statement of your financial [position | performance].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 16

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Total assets on your personal balance sheet are $6,000 and liabilities are $2,000.Your solvency ratio is [67% | 33%].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 17

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-If your expenses exceed your income,the bottom line of your income/expense statement will show a [surplus | deficit].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 18

Which of the following is among the four categories accounting for almost three-quarters of consumer spending?
A)Personal insurance and pensions
B)Clothing
C)Utilities
D)Entertainment
E)Medical

Accepted Answer

The answer of Which of the following is among the...

Question 19

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The primary function of financial statements is to provide a picture of your [actual | projected] financial position.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 20

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Your car has a market value of $10,000 while the balance of the loan against it is now $2,500.You will list this car in the assets section of your personal balance sheet at [$7,500 | $10,000].

Accepted Answer

The answer of Choose the word or phrase in [...

Quiz 2: Using Financial Statements and Budgets

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -A deficit on your income and expense statement will have [an | no] effect on your personal balance sheet.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -A(n)[auto loan balance | insurance premium] would be an example of a current liability.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The total amount of salary you earn before taxes are deducted is called your [gross | net] pay.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Medical expenses | Rent payments] would be more difficult to estimate for the coming year.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -A [house | certificate of deposit] is an example of a tangible asset.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -When your assets exceed your liabilities,you are [saving | solvent].

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Another term sometimes used for net worth is [collateral | equity].

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -If you pay off your debt but make no changes in your assets,your net worth will [increase | decrease].

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -A [savings account | retirement account] would be an example of a liquid asset.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -When your liabilities exceed your assets,you are [solvent | insolvent].

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Investment assets are required to [earn a return | provide a service].

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -A personal balance sheet provides a statement of your financial [position | performance].

Which of the following is among the four categories accounting for almost three-quarters of consumer spending?