Quiz 1 BUSI 223 Personal Finance

1.      Net income (after Taxes) should be used when developing an income and expense statement.

2.      A successful financial plan will be based on a person’s goals

3.      Many and Jeff have a net worth of $25,000 and total assets of $140,000. If their revolving credit and unpaid bills total $2,200, what are their total liabilities?

4.      If your total assets equal $87,000 and your total liabilities equal $10,000, your solvency ratio is:

5.      When preparing a cash budget, estimating expenses using actual expenses from previous years and by tracking current expenses makes the task easier

6.      The process of finding future value is called discounting

7.      Present Value describes the process of determining what a cash flow to be received in the future is worth in today’s dollars

8.      In terms of time value of money, a payment is a series of two or more equal amounts that occur at regular time periods

9.      A dollar today is worth more than a dollar to be received in the future

10.   A(n) __________ is an example of a current liability

11.   A _______________ is an example of a tangible asset

12.   Jacques’s total monthly loan payments amount to $1,020, while her gross income is $3,000 per month. What is her debt service ratio?

13.   Balance sheet liabilities should be recorded at their:

14.   A balance sheet provides a statement of your financial ___________

15.   A __________ is an example of a liquid asset

16.   A budget is a :

17.   There is a need for budget adjustments when