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Sample Test
|
Chapter_03_Financial_Statements__Tools__and_Budgets
1. Financial planning focuses primarily on spending
wisely.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Identify your financial values, goals and strategies
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
financial planning also includes the management of risk
and plans for capital accumulation 3.1
|
|
DATE CREATED:
|
9/22/2017 12:59 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:24 AM
|
|
|
2. Financial planning begins by
acquiring a good job that provides a person with enough extra income to
manage.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Identify your financial values, goals and strategies
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
financial planning begins by examining values and
setting financial goals. 3.1
|
|
DATE CREATED:
|
9/22/2017 1:00 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:27 AM
|
|
|
3. Financial planning is the
process of developing and implementing short-term plans to achieve financial
objectives.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Identify your financial values, goals and strategies
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Remembering
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
financial planning is long-term. 3.1
|
|
DATE CREATED:
|
9/22/2017 1:01 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:27 AM
|
|
|
4. Financial planning is a single,
customized plan regarding a person’s financial affairs.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Identify your financial values, goals and strategies
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
financial planning involves a series of plans. 3.1
|
|
DATE CREATED:
|
9/22/2017 1:03 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:29 AM
|
|
|
5. Financial planning is only for
the rich.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Identify your financial values, goals and strategies
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
people of all income and wealth levels benefit from
doing financial planning. 3.1
|
|
DATE CREATED:
|
9/22/2017 1:04 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:29 AM
|
|
|
6. Values have little impact on financial
goals.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Identify your financial values, goals and strategies
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
personal values are the starting point for setting
financial goals. 3.1
|
|
DATE CREATED:
|
9/22/2017 1:05 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:30 AM
|
|
|
7. It is not necessary that your
values be consistent with your financial and lifestyle goals.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Identify your financial values, goals and strategies
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
financial and lifestyle goals should be consistent with
your values
|
|
DATE CREATED:
|
9/22/2017 1:07 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:31 AM
|
|
|
8. Values are fundamental beliefs
regarding what consumer goods are worth.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Identify your financial values, goals and strategies
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
DATE CREATED:
|
9/22/2017 1:09 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:31 AM
|
|
|
9. The concept of “pay myself
first,” saving and investing before you pay other expenses, is a
characteristic of successful financial managers.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Identify your financial values, goals and strategies
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.1
|
|
DATE CREATED:
|
9/22/2017 1:26 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:32 AM
|
|
|
10. Financial planning begins by
examining one’s values.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Identify your financial values, goals and strategies
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.1
|
|
DATE CREATED:
|
9/22/2017 1:28 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:33 AM
|
|
|
11. Your goal in financial
planning is to manage your income and wealth in such a way that your goals
are met in a suitable manner.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Identify your financial values, goals and strategies
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.1
|
|
DATE CREATED:
|
9/22/2017 1:30 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:33 AM
|
|
|
12. Paying off debts is an example
of a financial goal even though it does not involve a direct purchase.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Identify your financial values, goals and strategies
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.1
|
|
DATE CREATED:
|
9/22/2017 1:31 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:34 AM
|
|
|
13. Effective financial goals
should be stated explicitly in terms of purpose, dollar amounts, and
projected date for achievement.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Identify your financial values, goals and strategies
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.1
|
|
DATE CREATED:
|
9/22/2017 1:32 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:35 AM
|
|
|
14. Among the intermediate-term
goals for capital accumulation is having a fund for emergencies.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Identify your financial values, goals and strategies
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.1
|
|
DATE CREATED:
|
9/22/2017 1:33 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:36 AM
|
|
|
15. Reducing the number of bank
and credit accounts that each partner brings into the marriage can save money
on account fees.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 1:35 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:36 AM
|
|
|
16. A balance sheet describes an
individual’s financial progress over a period of time, generally a year.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
NATIONAL STANDARDS:
|
United States – United States – FN_3 – Reporting
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2 a balance sheet shows an individual’s financial
status on a specified date.
|
|
DATE CREATED:
|
9/22/2017 1:36 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:37 AM
|
|
|
17. A cash-flow statement
summarizes transactions that have taken place over a specific period of time.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
NATIONAL STANDARDS:
|
United States – United States – FN_3 – Reporting
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 2:01 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:38 AM
|
|
|
18. Monetary assets include cash
and near-cash items that can be readily converted to cash.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
NATIONAL STANDARDS:
|
United States – United States – FN_3 – Reporting
|
|
KEYWORDS:
|
Bloom’s: Remembering
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 2:04 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:39 AM
|
|
|
19. Tangible assets are assets
whose primary purpose is to provide maintenance of a lifestyle.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
NATIONAL STANDARDS:
|
United States – United States – FN_3 – Reporting
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 2:07 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:39 AM
|
|
|
20. Successful financial planning
requires identifying the one best investment asset for an individual, then
putting all of the individual’s surplus into that asset.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
successful financial planning involves using several
investment assets. 3.2
|
|
DATE CREATED:
|
9/22/2017 2:11 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:40 AM
|
|
|
21. In general, tangible assets do
not depreciate in value over time.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
NATIONAL STANDARDS:
|
United States – United States – FN_3 – Reporting
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2 most tangible assets do depreciate over time.
|
|
DATE CREATED:
|
9/22/2017 2:08 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:41 AM
|
|
|
22. Both individual retirement
accounts (IRAs) and non-residential real estate property are investment
assets.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
NATIONAL STANDARDS:
|
United States – United States – FN_3 – Reporting
|
|
KEYWORDS:
|
Bloom’s: Remembering
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 2:13 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:42 AM
|
|
|
23. The balance sheet serves as an
assessment of assets and liabilities at fair market value as of a specified
date.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
NATIONAL STANDARDS:
|
United States – United States – FN_3 – Reporting
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 2:15 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:43 AM
|
|
|
24. For most people, the only way
to increase net worth is to spend less than their income; people must save
and invest.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 2:19 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:44 AM
|
|
|
25. A balance sheet shows flows of
income in and expenses out of your finances for a given period of time.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
NATIONAL STANDARDS:
|
United States – United States – FN_3 – Reporting
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2 the balance sheet shows the value of your assets and
liabilities as of a specific date.
|
|
DATE CREATED:
|
9/22/2017 2:20 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:45 AM
|
|
|
26. Short-term liabilities are
obligations to be paid off within one year.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
NATIONAL STANDARDS:
|
United States – United States – FN_3 – Reporting
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 2:22 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:46 AM
|
|
|
27. The liability section of a
balance sheet would include money owed to a doctor or a lawyer but would not
include money owed to a friend.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
NATIONAL STANDARDS:
|
United States – United States – FN_3 – Reporting
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2 all monies owed are included
|
|
DATE CREATED:
|
9/22/2017 2:24 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:47 AM
|
|
|
28. A person who has a negative
net worth is technically insolvent.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 2:25 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:48 AM
|
|
|
29. A cash-flow statement for a
previous year would show whether you were able to live within your income.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
NATIONAL STANDARDS:
|
United States – United States – FN_3 – Reporting
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 2:30 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:49 AM
|
|
|
30. A cash-flow statement shows
flows of income in and expenses out of your finances for a given period of
time.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
NATIONAL STANDARDS:
|
United States – United States – FN_3 – Reporting
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 2:32 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:50 AM
|
|
|
31. A cash-flow statement shows
the value of your assets and liabilities as of a specific date.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
NATIONAL STANDARDS:
|
United States – United States – FN_3 – Reporting
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2 the cash-flow statement shows flows of income in and
expenses out of your finances for a given period of time.
|
|
DATE CREATED:
|
9/22/2017 2:34 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:51 AM
|
|
|
32. Keeping track of all income
and expenses is very important to achieving your financial objectives.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
NATIONAL STANDARDS:
|
United States – United States – FN_3 – Reporting
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 2:37 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:51 AM
|
|
|
33. Savings set aside can be
categorized as both fixed and variable expenses.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 2:40 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:52 AM
|
|
|
34. It is usually easy to reduce a
fixed expense.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
fixed expenses are difficult to reduce. 3.2
|
|
DATE CREATED:
|
9/22/2017 2:41 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:53 AM
|
|
|
35. The surplus section on an
individual’s cash-flow statement is similar to net profit for a business.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
NATIONAL STANDARDS:
|
United States – United States – FN_3 – Reporting
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 2:43 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:53 AM
|
|
|
36. Most people keep track of
their finances on a cash basis rather than on an accrual basis.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
NATIONAL STANDARDS:
|
United States – United States – FN_3 – Reporting
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 2:44 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:54 AM
|
|
|
37. A surplus demonstrates that
you are managing your financial resources successfully and do not have to use
savings or borrow to make financial ends meet.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 2:47 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:55 AM
|
|
|
38. Financial ratios are numerical
calculations that make assessments of financial conditions more complex.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
NATIONAL STANDARDS:
|
United States – United States – FN_3 – Reporting
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2 financial ratios simplify the process of assessing
your financial condition.
|
|
DATE CREATED:
|
9/22/2017 2:49 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:56 AM
|
|
|
39. Many experts recommend that
people should have assets equal to one year’s expenses in emergency cash
reserves.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
financial experts tend to recommend a three-month
emergency fund although some recommend up to six months. 3.2
|
|
DATE CREATED:
|
9/22/2017 2:51 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:56 AM
|
|
|
40. The liquidity ratio reveals
how many months it would take to convert all assets into cash.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
this ratio relates only to monetary assets and how long
they would last should income stop. 3.2
|
|
DATE CREATED:
|
9/22/2017 2:54 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:57 AM
|
|
|
41. You can use the liquidity
ratio to determine the number of months that you could continue to meet your
expenses using only your monetary assets should all income cease.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 2:57 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:58 AM
|
|
|
42. A family with two income
earners will always need a greater amount of cash reserves than a family with
one earner.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
the need for cash reserves relates to the amount of
income and not whether it comes from one or multiple sources. 3.2
|
|
DATE CREATED:
|
9/22/2017 3:07 AM
|
|
DATE MODIFIED:
|
9/26/2017 1:58 AM
|
|
|
43. By analyzing financial
statements, a person can assess his or her financial condition and progress.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
NATIONAL STANDARDS:
|
United States – United States – FN_3 – Reporting
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 3:08 AM
|
|
DATE MODIFIED:
|
9/26/2017 2:00 AM
|
|
|
44. Households dependent on the
income from a self-employed person may need a larger emergency cash reserve
than others.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 3:11 AM
|
|
DATE MODIFIED:
|
9/26/2017 2:01 AM
|
|
|
45. The asset-to-debt ratio
compares total assets with total liabilities and is a broad measure of a
household’s financial liquidity.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Remembering
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 3:13 AM
|
|
DATE MODIFIED:
|
9/26/2017 2:07 AM
|
|
|
46. A person is insolvent when he
or she doesn’t have enough current income to pay all of his or her current
bills.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2 insolvent refers to not having enough assets to
cover your liabilities—a negative net worth.
|
|
DATE CREATED:
|
9/22/2017 3:14 AM
|
|
DATE MODIFIED:
|
9/26/2017 2:08 AM
|
|
|
47. A low asset-to-debt ratio is a
positive indicator of financial well-being.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
a high asset-to-debt ratio is desirable. 3.2
|
|
DATE CREATED:
|
9/22/2017 3:16 AM
|
|
DATE MODIFIED:
|
9/26/2017 2:08 AM
|
|
|
48. The debt-to-income ratio
provides a view of total debt burden of an individual or family by comparing
the dollars spent on gross annual debt repayments with gross annual income.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 3:18 AM
|
|
DATE MODIFIED:
|
9/26/2017 2:09 AM
|
|
|
49. A debt-to-income ratio of 0.36
or less is considered manageable for most families.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 3:20 AM
|
|
DATE MODIFIED:
|
9/26/2017 2:09 AM
|
|
|
50. A debt-to-income ratio of 0.36
or less indicates that disposable income is adequate to make debt repayments.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Moderate
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
a ratio of 0.36 or less indicates that gross income is
adequate to make debt repayments. 3.2
|
|
DATE CREATED:
|
9/22/2017 3:22 AM
|
|
DATE MODIFIED:
|
9/26/2017 2:10 AM
|
|
|
51. The debt payments-to-disposable-income
ratio is gross income divided by monthly nonmortgage debt repayments.
|
ANSWER:
|
False
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Remembering
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
the ratio is monthly nonmortgage debt payments divided
by monthly disposable income. 3.2
|
|
DATE CREATED:
|
9/22/2017 3:24 AM
|
|
DATE MODIFIED:
|
9/26/2017 2:10 AM
|
|
|
52. The investment assets-to-total
assets ratio compares the value of your investment assets with your total
assets.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Use balance sheets and cash-flow statements to measure
your financial health and progress
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Remembering
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.2
|
|
DATE CREATED:
|
9/22/2017 3:26 AM
|
|
DATE MODIFIED:
|
9/26/2017 2:11 AM
|
|
|
53. Bookkeeping is the process of
recording the sources and amounts of dollars earned and spent.
|
ANSWER:
|
True
|
|
POINTS:
|
1
|
|
DIFFICULTY:
|
Easy
|
|
REFERENCES:
|
Collect and organize the financial records necessary for
managing your personal finances
|
|
QUESTION TYPE:
|
True / False
|
|
HAS VARIABLES:
|
False
|
|
KEYWORDS:
|
Bloom’s: Understanding
|
|
OTHER:
|
Analytic
|
|
NOTES:
|
3.53
|
|
DATE CREATED:
|
9/22/2017 3:28 AM
|
|
DATE MODIFIED:
|
9/26/2017 2:11 AM
|
|
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