Budgeting and Net Worth Test Review

P.Y.F. means Pay Yourself Finally.

• True

• False

When creating a budget, income and expenses must balance each other.

• True

• False

Current liabilities are debts that are due in more than one year.

• True

• False

If you owe more than you own, you have a positive net worth.

• True

• False

The equation for calculating Net Worth is Assets + Liabilities.

• True

• False

The two elements to consider in budgeting and planning are your income and expenses.

• True

• False

A net worth statement will be useful when you apply for a loan or credit.

• True

• False

Only people with considerable wealth need to create a personal record keeping system.

• True

• False

A budget is about depriving yourself of favorite things.

• True

• False

If Suzanne earns $75,000 a year and Sam earns $50,000 a year, Sam will always have a lower net worth.

• True

• False