Question 1

According to the Keown book,the most popular personal financial management program for the PC is
A)Intuit's Quicken.
B)MoneyGuidePro.
C)Financial Peace.
D)Crown Financial.

Accepted Answer

Keown's book states that the most popular personal financial management program for the PC is Intuit's Quicken.

Question 2

Assuming that they have no current bills other than those that are listed,what is their current ratio?
A)0.59 times
B)2,000/1,000
C)2 times
D)Both B and C are correct.
E)Not enough information available

Accepted Answer

The answer of Assuming that they have no current bills...

Question 3

According to the Keown book,what are the three primary reasons for maintaining financial records?

Accepted Answer

The answer of According to the Keown book,what are the...

Question 4

Assuming that they have no current bills other than those that are listed,what is their current ratio?
A)0.79 times
B)$5,000/$3,000
C)2 times
D)Not enough information available

Accepted Answer

Current ratio is calculated by dividing current assets by current liabilities. In this case, current assets are $5,000 and current liabilities are $3,000, so the current ratio is:

Current Ratio = Current Assets / Current Liabilities
Current Ratio = $5,000 / $3,000
Current Ratio = 1.67 times

Therefore, the best choice is B, which is the calculated current ratio.

Question 5

What is their debt ratio?
A)169 percent
B)1.69 times
C)0.59 percent
D)0.59 times
E)2 times

Accepted Answer

The answer of What is their debt ratio?
A)169 percent
B)1.69 times
C)0.59...

Question 6

According the Keown book,which Web-based personal financial planning website is known as "the best free way to manage your money?"
A)Mint.com
B)Levelmoney.com
C)YahooFinance.com
D)WSJ.com

Accepted Answer

According to the Keown book, Mint.com is known as "the best free way to manage your money" as it allows users to link all their financial accounts and track their spending, create budgets, and set financial goals.

Question 7

What is their debt ratio?
A)123 percent
B)3 times
C)1.23 times
D)0.54 percent

Accepted Answer

The answer of What is their debt ratio?
A)123 percent
B)3 times
C)1.23...

Question 8

Which of the following is the best type of record-keeping system to use in maintaining financial records?
A)Manual method with pencil and notebook
B)Computer software
C)Apps
D)All of the above

Accepted Answer

All of the above options can be considered the best type of record-keeping system depending on the specific needs, preferences, and resources of the individual or business maintaining financial records. Each method has its own advantages and can be effectively used for financial record-keeping.

Question 9

What is their month's living expenses covered ratio?
A)2 months
B)1.23 months
C)1.75 months
D)Not enough information to answer this question

Accepted Answer

The question does not provide any specific numbers or details regarding the individual's income, savings, or monthly living expenses, making it impossible to calculate the living expenses covered ratio.

Question 10

What is their current net worth?
A)$13,000
B)$22,000
C)$9,000
D)$35,000
E)$(13,000)

Accepted Answer

The answer of What is their current net worth?
A)$13,000
B)$22,000
C)$9,000
D)$35,000
E)$(13,000)
...

Question 11

Explain the relationship between the debt ratio and insolvency?

Accepted Answer

The answer of Explain the relationship between the debt ratio...

Question 12

A financial ratio by itself is of little value.To what can you compare your financial ratios to make them valuable financial planning tools?

Accepted Answer

The answer of A financial ratio by itself is of...

Question 13

What is their current net worth?
A)$21,000
B)$39,000
C)$18,000
D)$(21,000)

Accepted Answer

The given option is the only positive net worth among all the options. The rest are either negative or have a lower value.

Question 14

What questions do financial ratios help answer?

Accepted Answer

The answer of What questions do financial ratios help answer?...

Question 15

How do you calculate the current ratio,debt ratio,and savings ratio?

Accepted Answer

The answer of How do you calculate the current ratio,debt...

Question 16

What is their month's living expenses covered ratio?
A)2 months
B)2.44 months
C)1.69 months
D)0.5 months
E)Not enough information to answer this question

Accepted Answer

The question does not provide any specific financial figures or details about the individual's or household's income, savings, or monthly living expenses, making it impossible to calculate the living expenses covered ratio.

Question 17

Jorge has a debt ratio of 37 percent and Jose has a ratio of 102 percent.They both have the same take-home pay every month.How can we describe their current financial situation?
A)Jorge is currently solvent.
B)Jose is currently insolvent.
C)Jorge probably has more money available to enjoy every month.
D)Jose probably doesn't have much money available to enjoy every month.
E)All of the above

Accepted Answer

Jorge's debt ratio of 37 percent indicates he owes less than he owns, suggesting solvency, while Jose's 102 percent debt ratio suggests he owes more than he owns, indicating insolvency. Given the same take-home pay, Jorge likely has more disposable income after debt payments than Jose, who may have less money available for discretionary spending.

Question 18

Hector's month's living expenses covered ratio is 0.25 months.He just broke his leg and will not be able to work for six weeks.Without a paycheck for six weeks,what will Hector most likely experience?
A)He may have to liquidate some of his tangible or investment assets to keep current on his monthly bills.
B)He doesn't have to worry because he has plenty of money in his savings accounts.
C)He may have to borrow some money to keep current on his monthly bills
D)There is not enough information to answer this question.
E)Both A and C are realistic possibilities.

Accepted Answer

Hector's living expenses are only covered for 0.25 months, indicating that he may not have significant savings or assets to fall back on. Therefore, both options A and C could be realistic possibilities for him to keep up with his monthly bills during the six weeks he will be unable to work.

Question 19

A strong record-keeping system allows you to
A)track expenses.
B)know exactly how much you're spending.
C)know where you're spending your financial resources.
D)all of the above.

Accepted Answer

A strong record-keeping system allows you to track your expenses, know exactly how much you're spending, and know where you're spending your financial resources. Therefore, all of the above choices are correct.

Question 20

According to the Keown book,Mint and Level Money are two of the best smartphone apps for tracking your spending and setting up a budget.

Accepted Answer

This is a true statement according to the Keown book.

Quiz 2: Measuring Your Financial Health and Making a Plan

According to the Keown book,the most popular personal financial management program for the PC is

Assuming that they have no current bills other than those that are listed,what is their current ratio?

According to the Keown book,what are the three primary reasons for maintaining financial records?

Assuming that they have no current bills other than those that are listed,what is their current ratio?

What is their debt ratio?

According the Keown book,which Web-based personal financial planning website is known as "the best free way to manage your money?"

What is their debt ratio?

Which of the following is the best type of record-keeping system to use in maintaining financial records?

What is their month's living expenses covered ratio?

What is their current net worth?