Chapter 4.2 Agreements and Record Keeping

What is the purpose of financial planning?

• To increase spending

• To prepare a personal budget

• To avoid saving

• To eliminate all debts

What is included in a personal property inventory?

• List of favorite movies

• List of personal assets

• List of vacation spots

• List of hobbies

What is the significance of a net worth statement?

• It tracks daily expenses

• It shows financial position

• It lists favorite books

• It plans weekly meals

How does a budget help with daily needs?

• By increasing borrowing

• By reducing income

• By avoiding the need to use credit

• By ignoring expenses

Which of the following is not a step in preparing a budget?

• Estimate your income.

• Estimate your expenses.

• Decide how much to save.

• Spend all your income.

What is the total income for Austin Albright in September?

• $320

• $420

• $370

• $400

An implied contract is not written but is created by the actions or conduct of people.

• True

• False

Which of the following is a type of income record?

• Medical bills

• Receipts for work-related expenses

• Statements from banks

• Receipts listing charitable contributions

What is a W-2 form used for in tax records?

• To verify expenses

• To verify income

• To verify identity

• To verify employment

What should taxpayers do with their tax records after filing their returns?

• Discard them immediately

• Keep them for at least three years

• Keep them for one year

• Send them to the IRS