Chapter 16 Assessment

The difference between your personal assets and your personal liabilities is your:

• cash inflow

• net worth

• cash outflow

• net income

Take-home pay is the amount you have left in your paycheck

• after you pay your bills for the week

• after taxes and deductions

• before taxes and deductions

• before you pay your bills for the week

Which of the following is a fixed expense?

• food

• utilities

• clothing

• rent

This tax is based upon the value of land and buildings

• income tax

• sales tax

• gift tax

• real estate property tax

A good first step in financial planning would be to

• create a balance sheet and cash flow statement

• hire a professional financial planner

• pay off all of your debts

• develop long-term financial goals

Items of value, such as bank accounts, jewelry, and automobiles are

• personal assets

• cash outflows

• annuity

• net income

The agency responsible for collecting federal income tax is:

• State's Attorney

• OSHA

• Internal Revenue Service

• Department of Social Services

_______ _______ refers to the day-to-day financial activities associated with using limited income to satisfy unlimited needs and wants.

• Personal assets

• taxable income

• cash outflows

• Money management

_____ expenses occur regularly and are for the same amount.

______ expenses differ each time.

• variable, fixed

• deficit, surplus

• fixed, variable

• surplus, deficit

_____ includes evaluating your financial position and setting financial goals.

• Surplus

• Tax deduction

• Personal assets

• Financial planning