2.01-2.03 Review PF

How can you increase net worth

• Decrease assets

• Increase assets

• Increase liabilities

• Increase assets and liabilities

How often is it recommended to create a Statement of Financial Position

• Four times per year

• Three times per year

• Two time a year

• Once per year

What is a liability

• Everything a person owns

• assets that will generate money

• what is owed to others

• an individuals financial condition

Which type of assets can be quickly converted into cash

• monetary

• tangible

• investment

• liable

Which type of assets are purchased with the hope they will generate income and appreciate in value

• monetary

• tangible

• investment

• liable

How is net worth calculated

• Assets + Liabilities

• Assets + Net Worth

• Assets - Liabilities

• Net Worth - Liabilities

All states have state income tax.

• True
• False

Unearned income could include interest earned from a savings account.

• True
• False

This tax funds the Social Security and Medicare programs

• Income tax

• Payroll tax

• Property tax

• Sales tax

• Excise tax

A tax on earned and unearned income

• Income tax

• Payroll tax

• Property tax

• Sales tax

• Excise tax