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A person's net worth would increase as a result of

reduced amounts owed to others.

A budget deficit would result when a person's or family's

actual expenses are greater than planned expenses.

Warranties are commonly associated with ____________ purchases.

consumer

If budgeted spending is less than actual spending, this is referred to as a deficit.

True

Which of the following presents a summary of income and outflows for a period of time?

A cash flow statement

The difference between the amount budgeted and the actual amount is called a

budget variance.

Improvements in a person's financial position are the result of

increased savings and investments.

Items of value less amounts owed to others equals

net worth.

A decrease in net worth would be the result of

expenses greater than income for a month.

Which of the following situations is a person who could be insolvent?

Assets $40,000; liabilities $45,000

A personal balance sheet reports your income and expenses.

False

Current liabilities differ from long-term liabilities based on

when the debt is due.

The payment items that should be budgeted first are

fixed expenses.

Most income tax documents and records should be kept in a safe-deposit box.

False

During the past month, Jennifer Ernet had income of $3,000 and a decrease in net worth of $200. This means Jennifer's payments for the month were

$3,200.

Which of the following payments would be considered a variable expense?

A telephone bill

A major expenditure for most families is

transportation.

Ben Chase needs to pay off some of his debts over the next few months. Which item on his balance sheet would help him decide what amounts are due in the near future?

Current liabilities

A home file should be used for

financial records for current needs.

Changes in the cost of living are

different in various geographic areas.

Money management refers to

day-to-day financial activities.

Which of the following are considered to be personal financial statements?

Balance sheet and cash flow statement

Which of the following financial documents would most likely be stored in a safe-deposit box?

savings certificates

Total earnings of a person less deductions for taxes and other items is called

take-home pay.

The current financial position of an individual or family is best presented with the use of a(n)

balance sheet.

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