WorksheetsSection 4: Financial Statements, Tools, and Budgets
Total questions: 12
Worksheet time: 12mins
Which of the following is the best example of a well-stated financial goal?
Buy a $3,000 computer in 18 months
Purchase a three-bedroom home in five years
Buy a $2,000 stereo
Pay off your credit cards as soon as possible
Vincent and Paula Farelli have decided to pay off their $875 MasterCard debt by taking $875 out of their money market savings account. This transaction will:
increase their net worth on their balance sheet.
not change their net worth on their balance sheet.
decrease the surplus on their income and expense statement.
not change the surplus on their income and expense statement.
The primary purpose of setting long-term financial goals is to help
measure financial success or failure.
provide direction for overall financial planning.
acquire great wealth
achieve a comfortable retirement.
A balance sheet includes ____, ____, and ____.
income;expenses; net worth
assets; expenses; liabilities
income; liabilities; net worth
assets; liabilities; net worth
The concept of "pay myself first," saving and investing before you pay other expenses, is a characteristic of successful financial managers.
True
False
A(n) ________________ is a statistic that suggests how well the economy is doing now and in the future
economic isolator
procyclical investment
economic indicator
countercyclic investment
The U.S. government measures inflation using
the gross domestic product.
the index of leading economic indicators.
the consumer price index.
the consumer confidence index.
______________is the cost of decision measured by the value of the next best alternative that must be foregone
Decision cost
Marginal utility
Marginal cost
Opportunity cost
Which of the following is not an activity listed in the statement of cash flows?
Investing Activities
Funding Activities
Operating Activities
Financing Activities
Which of the following is a snapshot of the financial condition of the company at a particular time?
The income statement
The balance sheet
The statement of cash flows
All of these
At the top of the income statement is the total amount of money brought in from sales of products or services. This top line is often referred to as
the Allowances
Gross revenue
Earnings per share
Capital
_______ shows changes over time rather than absolute value dollar amounts at a point in time
Income Statement
Balance Sheet
Cash Flow Statement
Statement of changes in equity
