10.1a Financial Planning and Manangement

1. What is the meaning of financial management?

• Financial management is a process that involves managing money from sources of income into savings, expenses, protection and investment.

• Financial management is a process to spend money.

• Financial management is a process to earn income.

• Financial management is a process to set financial goals.

Explain the financial management process.

• The financial management process consists of evaluating financial status, creating a financial plan, carrying out the financial plan, and reviewing and revising the progress.

• The financial management process consists of setting goals, creating a financial plan, carrying out the financial plan, and reviewing and revising the progress.

• The financial management process consists of setting

  goals, evaluating financial status, creating a financial

  plan, and reviewing and revising the progress.

• The financial management process consists of setting goals, evaluating financial status, creating a financial plan, carrying out the financial plan, and reviewing and revising the progress.

What is the importance of setting financial goals?

• Setting a financial goal can help us to buy more desire items.

• Setting a financial goal can help us to earn more money.

• Setting a financial goal will affect the total monthly savings in achieving the goal.

• Setting a financial goal will affect our salary income.

Which of the followings are true about short-term and long-term financial goals?

(Choose all relevant.)

• Short-term financial goals are less than a year and do not involve a large amount of money to be achieved.

• Short-term financial goals are less than a year and involve a large amount of money to be achieved.

• Long-term financial goals are more than five years and do not involve a large amount of money as compared to the short-term financial goals.

• Long-term financial goals are more than five years and involve a large amount of money as compared to the short-term financial goals.

Which of the following is part of the financial management process?

• Setting goals

• evaluating financial status

• creating financial plan

• carrying out financial plan

• reviewing and revising the process

Which of the following is NOT true about setting financial goal?

• The goal must be Specific.

• The goal must be Measurable.

• The goal must be Attainable.

• The goal must be Realistic.

• The goal must not have a time limit.

Choose all true statement.

• Financial planning helps us monitor our cash flow.

• Active income and passive income are cash inflows.

• Expenses are cash outflows.

• A positive cash flow exists if the total expenses exceeds the total income.

Choose all true statement.

• Financial planning plans need NOT to be reviewed from time to time.

• Financial planning plans need to be reviewed from time to time.

• Financial goals might need changes if they are not realistic.

• Financial goal must be adjust as frequent as possible.

Choose the "Fixed Expense".

• Mortgage payment

• Groceries

• Electric bill

• Clothing

Which of the following is a "Variable Expense"?

• Subscriptions

• Groceries

• Rent

• Car payment