WorksheetsCH 16 Money Mgmt & Finc Planning Intro Bus
Total questions: 44
Worksheet time: 22mins
Name
Class
Date
1.
All the following are examples of tax deductions EXCEPT
a)
contributions to charitable organizations.
b)
certain medical expenses.
c)
rent expense.
d)
interest paid on a home mortgage or home equity loan.
2.
Take-home pay is
a)
the amount of a paycheck before taxes and other payroll deductions.
b)
the money you have available to spend as a result of working plus any
other income, such as a gift or stock dividend.
c)
cash inflows minus cash outflows.
d)
the amount you will receive when you cash your paycheck
3.
Which of the following is a variable expense?
a)
rent
b)
groceries
c)
mortgage payment
d)
insurance premium
4.
A successful budget
a)
should not need to be re-evaluated once it is in place.
b)
should be flexible.
c)
should never show any variances.
d)
should be flexible.
5.
Federal tax return mistakes can be avoided by
a)
filing online or mailing your return before the deadline.
b)
signing the completed return.
c)
using the proper tax forms, tax tables, and correct filing status.
d)
all of the above
6.
A tax on gasoline is known as a(n)
a)
income tax.
b)
estate tax.
c)
excise tax.
d)
gift tax.
7.
Your net worth is
a)
the difference between your personal assets and your liabilities.
b)
the total amount of all of your investments.
c)
the total value of your personal assets.
d)
what you have left over in your paycheck each week after deductions are
taken out.
8.
Your birth certificate and Social Security card would likely be contained in which category of your financial records filing system?
a)
personal records
b)
tax records
c)
money management records
d)
housing records
9.
If actual spending is greater than planned spending, it is referred to as a
a)
surfeit.
b)
surplus.
c)
deficit.
d)
liability.
10.
When you make a loan payment, your
a)
cash outflows decrease.
b)
net income increases.
c)
net worth is unaffected.
d)
liabilities decrease.
11.
If you have a budget, you should
a)
never buy anything on credit.
b)
learn how to plan for financial emergencies.
c)
be able to buy anything you want.
d)
be able to buy all of the above
12.
Which of the following would be a personal asset?
a)
your car payment
b)
your college loan
c)
your personal computer
d)
your home mortgage
13.
Which of the following correctly shows the budgeting process?
a)
set financial goals; plan budget categories; maintain financial records; evaluate your budget
b)
plan budget categories; set financial goals; maintain financial records; evaluate your budget
c)
set financial goals; maintain financial records; plan budget categories; evaluate your budget
d)
maintain financial records; plan budget categories; evaluate your budget; set financial goals
14.
This part of Social Security provides death benefits to dependents of workers who die.
a)
disability insurance
b)
survivors insurance
c)
unemployment insurance
d)
retirement insurance
15.
This month Anthony’s take-home pay was $1,500. He also earned $20 interest on a savings account. He spent $250 for rent, $100 for groceries, and $300 for other expenses. Anthony’s net cash flow this month totaled
a)
$850.
b)
$870.
c)
$1,500.
d)
$1,520.
16.
This month Anthony’s take-home pay was $1,500. He also earned $20 interest on a savings account. He spent $250 for rent, $100 for groceries, and $300 for other expenses. Anthony’s total cash inflows this month totaled
a)
$850.
b)
$870.
c)
$1,500.
d)
$1,520.
17.
This is a tax-sheltered retirement plan in which people can annually invest earnings up to a certain amount; the funds are taxed when they are withdrawn after age 59 1/2.
a)
individual retirement account
b)
pension
c)
annuity
d)
Social Security
18.
Wages, salary, commission, fees, tips, and bonuses are
a)
interest income
b)
tax-deferred income.
c)
earned income.
d)
tax-exempt income.
19.
Which of the following would probably be a short-term financial goal?
a)
going to college
b)
purchasing a new CD
c)
going on a three-week cruise
d)
buying a new luxury automobile
20.
One of the first things you should do as part of the financial planning process is to
a)
create a balance sheet and cash flow statement.
b)
begin searching for a better-paying job.
c)
develop financial goals.
d)
purchase life insurance.
21.
Tax laws and tax forms seldom change.
a)
True
b)
False
22.
A tax credit is the amount on which taxes are calculated.
a)
True
b)
False
23.
Most financial advisers recommend that an amount be set aside for food and housing as the first part of a budget.
a)
True
b)
False
24.
A balance sheet reports assets, liabilities, and net worth on a given date.
a)
True
b)
False
25.
All people have basically the same financial planning goals regardless of which stage of life they are in.
a)
True
b)
False
26.
An amount of money an insurance company pays to a person who has previously deposited money with the company is called a pension.
a)
True
b)
False
27.
A cash flow statement examines changes in the value of your personal assets.
a)
True
b)
False
28.
A W-2 is a summary of a worker’s earnings for the previous year and includes the amount deducted for taxes.
a)
True
b)
False
29.
A cash flow statement can help you develop and determine budget categories.
a)
True
b)
False
30.
Financial planning generally reduces an individual’s financial uncertainties.
a)
True
b)
False
31.
These expenses are costs that occur on a regular basis.
a)
variable
b)
fixed
c)
estate
32.
This is the amount of money you plan to use for a certain budget category.
a)
surplus
b)
overflow
c)
allowance
33.
A financial ____________________________ is a report that summarizes your current financial condition and helps set a direction for your future financial activities.
a)
estate
b)
plan
c)
pension
34.
A cash _____________
statement reports net wages and other income along with spending for a period, such as a month.
statement reports net wages and other income along with spending for a period, such as a month.
a)
flow
b)
outflows
c)
inflows
35.
Amounts spent for food, clothing, transportation, and other living costs are called cash what?
a)
inflows
b)
outflows
c)
fixed
36.
This type of income is the result of earnings from dividends, interest, and rent.
a)
surplus
b)
pension
c)
investment
37.
On taxes, this is an amount that reduces taxable income.
a)
fixed
b)
exemptions
c)
liabilities
38.
This planning involves the accumulation and management of property during one’s lifetime and the distribution of one’s property at death.
a)
tax
b)
pension
c)
estate
39.
Amounts owed to others is called what?
a)
liabilities
b)
assets
c)
investment
40.
A balance what is a record of assets and liabilities at a point in time.
a)
sheet
b)
liabilities
c)
exemption
41.
What kind of expenses are costs that occur on a regular basis?
a)
surplus
b)
variance
c)
fixed
42.
This is a series of regular payments made to a retired worker under an organized plan.
a)
pension
b)
outflows
c)
allowances
43.
Any difference between actual spending and budgeted amounts is called a budget what?
a)
surplus
b)
liability
c)
variance
44.
This occurs when a family spends less than they have budgeted for a month,
a)
outlflows
b)
surplus
c)
variance
100 %
