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WorksheetsCh 16: Financial Planning
Total questions: 46
Worksheet time: 34mins
A W-2 is a summary of a worker’s earnings for the previous year and includes the amount deducted for taxes.
(a)
A balance sheet reports assets, liabilities, and net worth on a given date.
True
False
A cash flow statement examines changes in the value of your personal assets.
Type: True or False
(a)
A tax credit is the amount on which taxes are calculated.
True
False
The process of good money management should start with knowing your current financial status.
Type:True or Falsse
(a)
A cash flow statement can help you develop and determine budget categories.
True
False
Tax laws and tax forms seldom change.
(a)
Financial planning generally reduces an individual’s financial uncertainties.
True
False
All people have basically the same financial planning goals regardless of which stage of life they are in.
True
False
An amount of money an insurance company pays to a person who has previously deposited money with the company is called a pension.
True
False
All the following are examples of tax deductions EXCEPT
interest paid on a home mortgage or home equity loan.
contributions to charitable organizations.
rent expense.
certain medical expenses.
Which of the following would be a personal asset?
your car payment
your home mortgage
your personal computer
your college loan
Your net worth is
the difference between your personal assets and your liabilities.
what you have left over in your paycheck each week after deductions are taken out.
the total amount of all of your investments.
the total value of your personal assets.
When you make a loan payment, your
net worth is unaffected.
cash outflows decrease
liabilities decrease.
.net income increases.
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)
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
$1,500
$1,520
$870
$850
Take-home pay is
the money you have available to spend as a result of working plus any other income, such as a gift or stock dividend.
the amount of a paycheck before taxes and other payroll deductions.
the amount you will receive when you cash your paycheck.
.
cash inflows minus cash outflows.
If you have a budget, you should
learn how to plan for financial emergencies.
never buy anything on credit.
be able to buy anything you want.
all of the above.
Which of the following correctly shows the budgeting process?
set financial goals; plan budget categories; maintain financial records; evaluate your budget
maintain financial records; plan budget categories; evaluate your budget; set financial goals
set financial goals; maintain financial records; plan budget categories; evaluate your budget
plan budget categories; set financial goals; maintain financial records; evaluate your budget
Which of the following would probably be a short-term financial goal?
buying a new luxury automobile
going on a three-week cruise
going to college
purchasing a new CD
Which of the following is a variable expense?
mortgage payment
insurance premium
rent
groceries
Wages, salary, commission, fees, tips, and bonuses are
interest income.
tax-deferred income.
tax-exempt income.
earned income.
Federal tax return mistakes can be avoided by
using the proper tax forms, tax tables, and correct filing status.
signing the completed return.
filing online or mailing your return before the deadline.
all of the above.
If actual spending is greater than planned spending, it is referred to as a
surfeit.
deficit.
surplus.
liability.
A successful budget
should be flexible
should not need to be re-evaluated once it is in place
should reflect current and future income.
should never show any variances.
One of the first things you should do as part of the financial planning process is to
purchase life insurance.
begin searching for a better-paying job.
evelop financial goals.
create a balance sheet and cash flow statement.
A tax on gasoline is known as a(n)
(a)
Your birth certificate and Social Security card would likely be contained in which category of your financial records filing system?
housing records
tax records
personal records
money management records
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.
annuity
pension
individual retirement account
Social Security
This part of Social Security provides death benefits to dependents of workers who die.
(a)
A balance_ is a record of assets and liabilites at a point in time.
(a)
Amounts owed to others are called debts or _.
(a)
_income is the result of earnings from dividends, interest, and rent.
(a)
A cash_statement reports net wages and other income along with spending for a period, such as a month.
(a)
Amounts spent for food, clothing, transportation, and other living costs are called cash _.
(a)
Costs that occur on a regular basis are called_expenses.
(a)
A(n) _ is the amount of money you plan to use for a certain budget category.
(a)
Any difference between actual spending and budgeted amounts is called a budget_.
(a)
When a family spends less than they have budgeted for a month, a(n)_ occurs.
(a)
A financial_is a report that summarizes your current financial condition and helps set a direction for your future financial activities.
(a)
A(n) _is a charge imposed by government to fund public services.
(a)
A tax _ is an amount that reduces taxable income.
(a)
is a series of regular payments made to a retired worker under an organized plan.
(a)
_planning involves the accumulation and management of property during one’s lifetime and the distribution of one’s property at death.
(a)
(a) refers to the processes of budgeting, saving, investing, spending, or otherwise overseeing the capital usage of an individual or group.
What should you look for when considering using a financial planner to help you create a financial plan? What questions should you ask when choosing a financial planner?
Essay question in Schoology
How are your fees determined?
What experience and training do you have?
Are you willing to supply references from past clients?
All of the above
