POB Chap 16 Quiz

The process of good money management should start with preparing a balance sheet and a cash flow statement to know your current financial status.

• True

• False

A record of your assets and liabilities is called a cash flow statement.

• True

• False

One of the best and simplest ways of having a good budgeting system is to use your checkbook and bank statements as a budget.

• True

• False

Estate, excise, and inheritance taxes are all taxes on wealth.

• True

• False

Refund anticipation loans, which often had an annual interest rate of more than 100 percent, have been replaced by refund anticipation checks.

• True

• False

Interest income from municipal bonds (issued by state and local governments) is not subject to federal income tax.

• True

• False

Estate planning includes how to distribute your property at death.

• True

• False

Without preparing a budget, you may lose control of your spending and your life.

• True

• False

A tax deduction is an amount that increases taxable income.

• True

• False

A personal cash flow statement is a report that summarizes your current financial condition and sets a direction for future financial activities.

• True

• False