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25 terms

2

STUDY
PLAY
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.