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Credit & Bankrupcty

Total questions: 22

Worksheet time: 11mins

Name
Class
Date
1.

 a more flexible form of finance that allows you to access the amount of money loaned, according to your needs at any given time.

a)

Open-Ended Credit.

b)

Closed-ended Credit.

c)

Credit.

d)

Contract.

2.

the formal process that allows debtors and creditors to resolve the problem of the debtor’s financial shortcomings through a reorganization plan.

a)

Ch. 11 Bankruptcy

b)

Lien

c)

Ch. 13 Bankruptcy

d)

Ch. 7 Bankruptcy

3.

an individual status that through liquidation eliminates most types of debt and stays on a person’s credit report for ten years.

a)

Ch. 13 Bankruptcy

b)

Lien

c)

Ch.7 Bankruptcy

d)

Ch. 11 Bankruptcy

4.

permits debtors with regular incomes to pay all or a portion of their

debts under the protection and supervision of the court.

a)

Ch. 13 Bankruptcy

b)

Ch. 11 Bankruptcy

c)

Lien

d)

Ch. 7 Bankruptcy

5.

a right to keep possession of property belonging to another person until a debt owed by that person is discharged.

a)

Ch. 7 Bankruptcy

b)

Lien

c)

Ch. 13 Bankruptcy

d)

Ch. 11 Bankruptcy

6.

a legal procedure requiring a portion of the debtor’s pay to be set aside by the person’s employer to pay creditors.

a)

Garnishment.

b)

Financial Personality.

c)

20/10 Rule.

d)

Repossession.

7.

a combination of an individual’s attitudes about money and spending patterns.

a)

Foreclosure.

b)

Garnishment.

c)

Financial Personality.

d)

Debt.

8.

states that an individual should never borrow more than 20 percent of his or her annual take-home pay.

a)

Garnishment

b)

20/10 Rule

c)

Debt

d)

Financial Personality

9.

taking collateral when a borrower fails to repay a loan.

a)

20/10 Rule.

b)

Financial Personality.

c)

Garnishment.

d)

Repossession.

10.

the forced sale of property.

a)

Foreclosure.

b)

Alimony.

c)

Credit Counseling Service.

d)

Collection Agency.

11.

the court ordered periodic allowance given by the higher earner of two former spouses.

a)

Alimony.

b)

Credit Counseling Service

c)

Collection Agency.

d)

Foreclosure.

12.

an organization that provides debt and financial management advice and services to people with debt.

a)

Alimony.

b)

Foreclosure.

c)

Debt Collection.

d)

Credit Counseling Service.

13.

a business that specializes in collection of owed finances.


a)

Foreclosure.

b)

Alimony.

c)

Debt Collection.

d)

Credit Counseling Service.

14.

use of someone else’s credit information.

a)

Misdemeanor.

b)

Credit Recovery.

c)

Fraudulent.

d)

Credit Fraud.

15.

The original amount owed is the  ________________ amount.

a)

Credit.

b)

Take-Home-Pay.

c)

Contract.

d)

Principal.

16.

A secured loan means that a borrower must offer __________ in order to get a loan.

a)

Interest.

b)

Proper Identification.

c)

Personal Loan History.

d)

Collateral.

17.

A statement of financial position showed non-current assets, current assets, current liabilities and non-current liabilities. What equals owner’s capital?

A

a)

total assets – current liabilities.

b)

total assets – total liabilities.

c)

current assets – current liabilities.

d)

non-current assets

18.

What is an income statement (profit and loss account)?

a)

A summary of income and expenditure of a business during a particular period.

b)

A statement of receipts and payments of a business during a particular period.

c)

.

A list of all the balances in the ledger accounts of a business at a particular date.

d)

A list of all the assets and liabilities of a business at a particular date.

19.

Which is an intangible asset?

a)

Data.

b)

Ghost Property.

c)

Intellectual Property.

d)

Credit History Report.

20.

How is a person's net worth determined?

a)

add your debts to your loan forgiveness.

b)

subtract your total liabilities from your total assets.

c)

Add together everything you own.

d)

All your accounts combined.

21.

Businesses use financial records to prepare financial statements (final accounts). Which record is used in the preparation of the balance sheet?

a)

Bankroll Ledger.

b)

Income Statement.

c)

Credit Sheet.

d)

Income Deductions.

22.

If an individual misses a payment the lender has the right to demand full payment if what is in the contract?

a)

Collateral.

b)

Termination of Ownership.

c)

Repossession Clause.

d)

Acceleration Clause.