Wilkins Personal Finance Quiz 1

Which of the following is the last step in creating a personal financial plan?

• Set financial goals for the next year.
• Invest in stocks immediately.
• Revising the plan.

• Create a budget for the first time.

Which step of the financial planning process involves devising strategies to help accomplish financial goals?

• Assessment
• Monitoring Progress
• Goal Setting
• Identifying courses of action.

_______________ is the sum of the individual's current assets minus the individual's total liabilities.

• Cash flow
• Net worth
• Gross profit
• Total income

Which would be considered a long-term financial goal?

• Saving for a retirement fund.

• Paying off credit card debt
• Buying a new car
• Taking a vacation next year

Which peice of SMART goal setting requires individuals to set a concrete number to assess whether the goal is completed?

• Achievable
• Time-bound
• Relevant
• Measurable

_____________________ is the first step an individual should take when creating a financial plan.

• Invest in stocks
• Set financial goals
• Create a budget
• Determining the financial situation.

In SMART, the "A" stands for "attainable."

• True

• False

________________________ is an example of a variable expense.

• Car payment

• Entertainment

• Electricity

• Rent

Which of the following is an expense which stays relatively the same from month to month, such as a car payment or rent?

• Fixed expense

• Equity expense

• Variable expense

• Estimated exopense

Which of the following is an itemized summary of the expected income and expenses for a defined period?

• Budget
• Income statement
• Expense tracker
• Financial report