Rent and insurance payments are examples of variable expenses. fixed expenses. l
ID: 2650502 • Letter: R
Question
Rent and insurance payments are examples of
variable expenses.
fixed expenses.
long-term liabilities.
short-term liabilities.
Matthew is concerned about his ability to save money regularly and has prepared a budget. Which of the following budget classifications would be most appropriate for Matthew's budget?
Savings as a fixed expenditure
Saving whatever may be left over
Savings as a variable expenditure
Question 3
A successful financial plan includes
explicitly stated financial goals.
specified values that underlie the plan.
all of these.
logical and consistent financial strategies.
Question 4
A cash-flow statement is also known as a(n) ____ statement.
taxable income
net worth
income and expense
asset-and-liability
Question 5
A long-term goal is one that is projected to be acheived beyond how much time?
five year
ten years
six months
one year
Question 6
A balance sheet includes ____, ____, and ____.
income; expenses; net worth
assets; expenses; liabilities
income; liabilities; net worth
assets; liabilities; net worth
Question 7
Disposable income is income
after all employer withholding including taxes.
minus fixed expenditures.
before taxes.
after all employer withholding except taxes.
Question 8
Which of the following would be classified as a long-term liability?
Education loan balance
Credit card debt
Bank card debt
All of these
Question 9
Stephen Scott's monthly pay stub indicates that his monthly gross income is $3,800. However, $800 is withheld for income and Social Security taxes, $200 is withheld for his health and disability insurance, and another $200 is contributed to his pension plan. How much is Stephen's disposable income?
$2,800
$3,000
$2,600
$3,800
Question 10
Which of the following provides information about a person's financial condition at a specific point in time?
Federal tax return
Balance sheet
All of these
Income and expense statement
Question 11
The two most useful financial statements are ____ and ____.
federal tax returns; income and expense statements
balance sheets; wills
cash-flow statements; balance sheets
wills; federal tax returns
Question 12
Which of the following is the best example of a well-stated financial goal?
Pay off your credit cards as soon as possible
Purchase a three-bedroom home in five years
Buy a $3,000 computer in 18 months
Buy a $2,000 stereo
Question 13
The first step in the budgeting process is
setting financial goals.
evaluating.
organizing.
decision making.
Question 13
The first step in the budgeting process is
setting financial goals.
evaluating.
organizing.
decision making.
Which of the following is a characteristic of a cash-flow statement?
It shows if you were able to live within your income for the period covered.
All of these.
It covers a period of time, usually one month or one year.
The statement includes three sections: income, expenses, and surplus (or deficit).
Question 15
The formula for calculating net worth is
income minus liabilities.
assets minus expenses.
income minus expenses.
assets minus liabilities.
Question 16
Food, clothing, and entertainment are examples of
long-term liabilities.
short-term liabilities.
fixed expenses.
variable expenses.
Question 17
To construct a balance sheet, you need to compile dollar values for your assets and liabilities. Good sources from which to begin are
checkbook or savings account records.
all of these.
investments.
receipts of various payments.
Question 18
Discretionary income is used to pay for things like
housing.
vacations.
utilities.
food.
Question 19
A short-term goal is one that is projected to be acheived within how much time?
one month
three months
one year
five years
Question 20
The advantages of having organized financial records include
helping you take advantage of all available tax deductions.
all of these.
enabling you to review the results of financial transactions.
helping you save money as well as make money.
A.variable expenses.
B.fixed expenses.
C.long-term liabilities.
D.short-term liabilities.
Explanation / Answer
Q1 B Fixed Expenses Q B Saving whatever may be left over Q3 C all of these Q4 C income and expense statement Q5 D one year Q6 D Assets , Liabilities , Net worth Q7 a after all EMPLOYER withholding including taxes Q8 a Education Loan Balance Q9 c 2,600 (3,800 - 800 -200 - 200) Q10 B Balance sheet For remaining questions kindly post the question in separate question as expecting 20 questions from 1 question is quite unfair