Intro to Business (Chapter 12)

Financial planning generally reduces an individual's financial uncertainties.

• True

• False

All people have basically the same financial planning goals regardless of which stage of life they are in.

• True

• False

Which of the following would probably be a short-term financial goal?

• Purchasing a new iPhone

• Buying a home

• Going to college

• Investing in Retirement

One of the first things you should do as part of the financial planning process is to:

• Begin searching for a better-paying job.

• Create a balance sheet and cash flow statement.

• Develop financial goals.

• Purchase life insurance.

Your birth certificate and social security card would likely be contained in which category of your financial records filing system?

• Money Management Records

• Housing Records

• Personal Records

• Tax Records

A record of your assets and liabilities is called a cash flow statement.

• True

• False

Savings accounts and a paid for home are examples of:

• Liabilities

• Assets

• Net Worth

• Cash Outflow

A payment for rent represents:

• A cash inflow

• A cash outflow

• A liability

• An asset

Assets = $300,000

Liabilities = $50,000

Net Worth = ???

• $250,000

• $350,000

• $300,000

• $50,000

Which one of the following would be considered a long-term goal?

• Buying groceries at the store

• Buying a gift for a friend

• Buying a new t-shirt from the mall

• Saving for retirement