I need help with these answers, thanks! 3. A(n) ____ would not be listed as an a
ID: 2622111 • Letter: I
Question
I need help with these answers, thanks!
3. A(n) ____ would not be listed as an asset on your balance sheet.
a.
mortgaged home
b.
savings account
c.
owned automobile
d.
checking account
e.
leased automobile
4. When Phil lists his house on his balance sheet, he should record the
a.
actual purchase price.
b.
replacement value.
c.
insured value.
d.
sale price.
e.
fair market value.
5. Your ____ is an example of a liquid asset.
a.
home
b.
car
c.
checking account
d.
charge account
e.
life insurance cash value
6. Kathy purchased new furniture for $10,000. She put $1,000 down and financed $9,000. She will pay $350 per month until the loan is paid off. Which of the following are true?
a.
The furniture should be recorded as an asset of $10,000 on Kathy's balance sheet.
b.
The $9,000 is entered as a liability on Kathy's balance sheet.
c.
The furniture should be recorded as a $1,000 expenditure on Kathy's balance sheet.
d.
The $350 payments are expenditures on Kathy's income and expenditure statement.
e.
All are correct except c
7. Sam and his wife Ann purchased a home in Lubbock, Texas in 1980 for $100,000. Their original home mortgage was for $90,000. The house has a current market value of $175,000 and a replacement value of $200,000. They still owe $55,000 on their home mortgage. Sam and Sally are now constructing their balance sheet. How should their home be reflected on their current personal balance sheet?
a.
$200,000 asset and $55,000 liability
b.
$200,000 asset and $90,000 liability
c.
$175,000 asset and $55,000 liability
d.
$175,000 asset and $90,000 liability
e.
$100,000 asset and $55,000 liability
8. ____ is an example of an personal asset.
a.
Jewelry
b.
Recreational equipment
c.
Corporate bond
d.
Charge account balance
e.
Auto insurance premium
9. A budget is a
a.
purchase plan.
b.
line of credit.
c.
financial statement.
d.
detailed financial forecast.
e.
set of personal financial objectives.
10. The main purpose of a budget is to
a.
develop goals.
b.
develop a financial plan.
c.
give feedback to the plan.
d.
monitor and control financial outcomes.
e.
revise goals.
a.
mortgaged home
b.
savings account
c.
owned automobile
d.
checking account
e.
leased automobile
Explanation / Answer
3.) a) Leased automobile
4.) e) Fair market value
5.) c) checking account is very liquid
6.) e) all are correct except c because assets value is recorded in balance sheet not the expenditure
7.) c) as current asset is equal to fair market value and current liability is equal to the mortgage amoun tremaining
8.) a) Jewellery is personal asset
9.) d) abudget is a detailed financial plan
10.) b) develop a financial plan