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WorksheetsAccounting & Finance Cumulative Assessment
Total questions: 42
Worksheet time: 21mins
A(n) __________ stays relatively the same month to month.
fixed expense
intermittent expense
discretionary expense
variable expense
Taxes and withholdings impact your ________, which is the amount of money your take home on your payceck
Net Income
Gross Income
Variable Income
Irregular Income
According to the Conscious spending plan what percent of your spending should be allocated for long-term investments?
10%
50-60%
30%
20%
Besides Income, what is the best tool to generate wealth?
Investments
Savings
Loans
Credit Cards
What will tracking expenses help you do?
stick withing budget guidelines
catch errors
Make adjustments
all of these
Someone making $70,000 per year, makes approximately how much per hour?
$40
$35
$70
$25
bank machine you use to make transactions without going into the bank
ATM
TYPEWRITER
COIN COUNTER
BANK TELLER
Most common type of bank account that pays interest.
SAVINGS
CHECKING
INTEREST
MORTGAGE
An outstanding check is
a very large check that you earned for working extra hours
A check that you have written that does not yet appear on your bank statement
A large check from your employer
A deposit that is on your register but not on your statement
Bi-Weekly means
every week
twice a week
every other week
Twice a month
Choose the answer that shows the different types of savings accounts in descending order, from the highest interest rates to the lowest
High-Yield Online Savings ; Credit Union Savings ; Traditional Savings
Credit Union Savings ; High-Yield Online Savings ; Traditional Savings
Traditional Savings ; High-Yield Online Savings ; Credit Union Savings
High-Yield Online Savings ; Traditional Savings ; Credit Union Savings
Automating Finances may be the single most profitable system most people build. True or False
True
False
A type of investment that invests in a lot of different companies is called
Stocks
Bonds
Mutual funds
T-bills
Spreading your investments around to inrease financial security
Risk assessment
Diversification
Stocks, bonds & cash
Liquidity trap
The number of years it takes for your money to double
72 Rules
Rule of 72
Which term or phrase has to do with the length of a bond?
Coupon Rate
Maturity
Par Value
Yield
What is the differences between stocks and bonds?
They are both investments.
A stock is what corn grows on, and a bond gets you out of jail.
Stock represents ownership, and bonds represents your word.
A stock represents ownership, and bonds represents a loan.
A score withing which of the following is considered a good FICO score?
765-850
Anything higher than 850
600-750
900-1000
One of the most important things you can do, when investing, is......
being able to time the market to buy low and sell high.
to buy stock in the next company predicted to grow immensely.
make asset allocation the focus of your investment strategy.
to make sure your portfolio has 50% or more dedicated to bonds.
If you are average a 9% return on your investments, how long, approximately, would it take for you to double your money, using the Rule of 72?
8 years
7.2 years
11.4 years
12 years
Out of the choices of percentages one should invest in stocks and bonds below, which is probably the best strategy for someone that is 35 years old?
Invest in 10% bonds and 90% stocks
Invest in 50% bonds and 50% stocks
Invest in 31% bonds and 69% stocks
Invest 100% in money markets
Out of the choices of percentages one should invest in stocks and bonds below, which is probably the best strategy for someone that is 65 years old?
Invest in 10% bonds and 90% stocks
Invest in 47% bonds and 53% stocks
Invest in 31% bonds and 69% stocks
Invest 100% in stocks
You want the inflation rate to be higher than the interest you’re earning on your investments.
We already know what the inflation rate will be in the year 2024, and we can use this information to make wise investments.
Historically, inflation in the US has been roughly 3%
If you invest your money, you don’t need to worry about inflation.
True or False: A 401K is a tax deferred account and does not tax your earnings until you are 89.5 years old
True
False
The annual contribution limit for a Roth IRA for the year 2024 (for under 50 yr olds) is?
20,000
19,500
7000
10,000
The annual contribution limit for a 401k for 2024 is?
21,500
17,000
23,000
42,000
The main benefits of a 401k account are
that it's contribution is taken out pre-tax and that employers may match a portion of the contribution
that it includes sales tax but at a much lower rate
that your earnings are never taxed and you can contribute up to 50% of your income
it always depreciates slowly and that it is tax free
Why is it important to consider the rate of inflation when investing?
If your rate of your return on your investment is lower than the rate of inflation then you are basically losing money.
If your rate of return on your investment is higher than the rate of inflation then this not legal
If your rate of return on your investment is higher than the rate of inflation then you will lose money.
Because you should make sure that the inflation rate is high so you gain more money
A savings account that is post tax on annual contributions but does not tax on earnings.
401k
Roth IRA
Traditional IRA
HSA
A pre-tax account that can be used to pay medical and healthcare related expenses (often times tax free) and when you reach age 65 the money can be used for anything
401k
HSA
Roth IRA
Traditional IRA
Which of the following types of investment accounts are considered "low return"? Choose three.
Stocks
Certificate of Deposit
Mutual fund
Money Markets
Savings account
If you want to increase the amount of money you earn annually, there are three main ways to do so, other than having multiple jobs. What are they? Choose all that apply.
Invest
Ask your current employer for a raise
Get a new Job
Drink less often from Starbucks
Eat only 2 meals a day
A mutual fund that gradually rebalances and reallocates assets as you get closer to retirement by lowering higher risk investments in favor of more conservative investments.
Index Fund
HSA
Target-Date Fund
401k
A type of mutual fund that seeks to track the returns of a specific markets. The S&P 500 is one of these.
Target-Date Fund
HSA
Index Fund
Roth IRA
Choose the answer that shows the different types of savings accounts in descending order, from the highest interest rates to the lowest
High-Yield Online Savings ; Credit Union Savings ; Traditional Savings
Credit Union Savings ; High-Yield Online Savings ; Traditional Savings
Traditional Savings ; High-Yield Online Savings ; Credit Union Savings
High-Yield Online Savings ; Traditional Savings ; Credit Union Savings
