QUESTIONQUESTION

• 1.When constructing a budget, it is helpful to use a personal cash flow statement, which measures a person's __________ and __________.

• assets; expenses

• assets; liabilities

• cash inflows; cash outflows

• None of the above

QUESTIONQUESTION

• Many individuals tend to _________ their cash inflows and __________ their cash outflows.

• underestimate; overestimate

• accurately estimate; underestimate

• overestimate; accurately estimate

• overestimate; underestimate

QUESTIONQUESTION

• The personal __________ summarizes your assets (what you own), your liabilities (what you owe), and your net worth (assets minus liabilities).

• statement of retained earnings

• balance sheet

• statement of cash flows

• income statement

QUESTIONQUESTION

• The balance sheet is a financial statement that describes a person's financial position at a given point in time

The balance sheet equation is:

___________________+_________=

• Net worth

QUESTIONQUESTION

• Jenny Santana is developing an annual budget based only on her monthly cash flows. In a typical month, Jenny experiences cash inflows of $2,200 and cash outflows of $1,500. Based on this information, Jenny's net cash flow in the annual budget is

• $7,700.• $700.• $8,400.• $9,100.•

QUESTIONQUESTION

__________ assets include items normally owned by a household, such as a home, a car, and furniture.

• Liquid

• Household

• Investment

• None of the above

QUESTIONQUESTION

• Sarah Evans has total assets of $10,000, including a car that is currently worth $1,500. Sarah's liabilities total $5,000. Based on this information, Sarah's net worth is

• $5,000.• - $10,000.• - $5,000.• $10,000.

QUESTIONQUESTION

• Financial Ratios are used to determine your financial position and show your financial______________ AND_________

QUESTIONQUESTION

• Debt ratio is the ratio which shows relationship between debt and____

______

QUESTIONQUESTION

. Which of the following has the biggest effect on your credit score?

• A. The number of credit cards you have.

• B. Your payment history.

• C. The amount of your credit you have utilized.

• D. They all have the same effect on your credit score.

ANSWERANSWER

• Your payment history has the biggest affect on your score. It accounts for approximately 35% of your score, so you can help protect your credit score by making payments on time and in full. Your credit utilization is also important, so avoid using more than 50% of your available credit.

QUESTIONQUESTION

• If you have several debts, which one should you try to pay off first?

• A. The debt with the highest interest rate.

• B. The largest debt.

• C. The debt that is tax deductible.

• D. The debt most recently incurred.