WorksheetsChapter 4 Test Reveiw
Total questions: 24
Worksheet time: 12mins
With every buying decision, there is a tradeoff and an opportunity cost.
False
True
If you spend less money on an item than you planned to spend, this is an unfavorable variance in your budget analysis.
True
False
Savings should be added to income when balancing a budget.
True
False
A goal you expect to achieve by next year would be considered a(n):
Personal goal
Long term goal
Intermediate goal
Short term goal
Benchmarks may consist of steps or specific actions to take.
True
False
Which of the following is true about keeping manual records of your personal finances?
They can't be stolen
They are not threatened by computer hackers
They are more accurate than electronic records
None of the above
Because most people do not have enough resources to meet all their needs and wants, they must make choices.
True
False
When preparing a personal budget, you should plan to put money into _______ before you consider other expenses.
Expenses
Discretionary funds
Savings
Liabilities
Your net worth can be computed as:
Assets - liabilities
Assets + liabilities
Cash inflows - cash outflows
Assets - cash outflows
An electric bill is an example of a ______ expense.
Discretionary
Fixed
Variable
Utility
Goals which you wish to acheive in the next 2 to 5 years are considered:
Long term goals
Intermediate goals
Short term goals
Personal goals
Which of the following is a common Internet scam in which an email is sent from someone posing as your bank or other legitimate business asking for personal information?
Hacking
Ponzi scheme
Pigeon sceme
Phishing
Which of the following would not be included in a person's assets?
$300 in your wallet
$1,000 in savings
$5,000 Dinette set
$13,000 car loan
Which of the following would be considered a fixed expense?
Electric bill
Gasoline
Rent
Groceries
Sherry Mathers has $31,565 in total assets and owes $13,565 on her car loan and credit cards. What is Sherry’s net worth?
$45,130
$18,000
$2.32
$31,565
If Pat earns $120 each paycheck and receives four paychecks per month, how much should she include as earnings in her yearly budget?
$5,760
$480
$1,440
$120
______ are money and items of value that you own
Valuables
Retirement
Liabilities
Assets
A(n) ________________ contains personal and financial goals you want to accomplish along with steps and a timeline for reaching these goals.
Long term goal
Financial Plan
Asset
Budget
A(n) ____________ is a visual display of how long it will take to achieve each phase of your financial plan.
Timeline
long term financial goal
Benchmark
Vision board
_____________ occurs when someone uses your personal information without permission to commit fraud or other crimes.
Phishing
Identity Theft
Pigeon scheme
Ponzie Scheme
Which of the following IS NOT one of the steps for creating a financial plan?
Gather information
Set goals
Develop a timeline and benchmarks
Determine wants and needs
Which of the following is considered a liability?
A car that you paid off
$1,000 in the bank
A car that you owe $2,500 on
A diamond ring that you bought with cash
Which of the following is not one of the steps for preparing a budget?
Estimate your income
Balance the budget
Plan savings
Create a financial plan
Which of the following would be the best option for creating an electronic budget?
Google Sheets
Microsoft Excel
Google Docs
Microsoft Word
