Chapter 16 Quiz Review

A balance sheet is a record of assets and liabilities at a point in time.

• True

• False

The difference between assets and liabilities is called your cash flow.

• True

• False

Variable expenses are for the same amount each time.

• True

• False

Earnings from dividends, interest, and rent are considered investment income.

• True

• False

The most popular retirement income plan is the individual retirement account (IRA).

• True

• False

The Internal Revenue Service provides taxpayers with tax information and tax preparation assistance.

• True

• False

Estate planning includes the distribution of your property at death.

• True

• False

An annuity is a series of regular payments made to a retired worker under a plan.

• True

• False