Exam Review - 1st Semester

Which of the following is the first step in creating a budget?

• Implement the budget

• Create personalized expense categories

• Make adjustments

• Track income and expenses

How long does Chapter 7 bankruptcy stay on your credit report?

• 2 years

• 7 years

• 10 years

• FOREVER!

Which of the following would be considered a liability?

• Roth IRA

• Automobile

• Savings account

• Mortgage

What is an employee required to complete when they begin a new job?

• Form W-2

• Form W-4

• Social Security Form

• All of the above

Which of the following is an example of a control method?

• Use a spreadsheet

• Use a digital app

• The Envelope System

• All of the above

Once a budget is established, adjustments to the budget are unnecessary.

• True

• False

What action corresponds to the advice “pay yourself first”?

• Wait until the end of the month to determine how much to save

• Directly deposit a portion of your paycheck into your savings account at the beginning of the month

• Make multiple payments to your savings account each month

• Spend your regular paycheck and save your bonus check

If a budget is NOT working, a possible alternative might be to

• Slash all budget items in half

• Increase spending and decrease savings

• Forget about budgeting and spend all available money

• Find additional sources of income or change the budget

What is net worth?

• Income minus liabilities

• Income minus expenses

• Assets minus expenses

• Assets minus liabilities

A financial goal will contain the following elements:

• Time bound, measurable, life cycle

• Specific, measurable, attainable, realistic, time bound

• Realistic, needs, wants, values

• Attainable, realistic, time bound, specific