Chapter 16 Review

A personal balance sheet would report all of the following except:

• net income

• amount in your checking account

• value of your car

• home mortgage

Setting financial goals is the ______ step in creating and using a budget.

• first

• second

• third

• final

Which of the following can BEST help you develop categories and provide a basis for a budget?

• paycheck stub

• balance sheet

• cash flow statement

• cost benefit analysis

This insurance provides cash payments for a limited time to individuals who are out of work for a reason other than illness.

• disability income insurance

• survivors insurance

• unemployment insurance

• retirement insurance

A person's tax can be reduced by:

• exemptions

• tax credit

• donations to charities

• all are true

Amount spent for food, clothing, and other living costs.

• annuity

• net income

• personal assets

• cash outflows

An amount of money an insurance company pays to a person who has previously deposited money with the company.

• annuity

• net income

• personal assets

• cash outflows

The amount of a paycheck after taxes and other payroll deductions.

• annuity

• net income

• personal assets

• cash outflows

Occurs when actual spending is less than budgeted spending

• pension

• net income

• surplus

• cash outflows

An amount that reduces taxable income.

• tax deduction

• deficit

• pension

• annuity