WorksheetsManaging Your Money Review
Total questions: 24
Worksheet time: 8mins
Which of the following should you NOT list as an asset on the Statement of Financial Position?
Money in your checking account
Money in the paycheck you will receive next week
Your hockey equipment
The market value of your car
What is the correct formula to calculate net worth?
Assets – liabilities = net worth
Assets x liabilities = net worth
Assets + liabilities = net worth
Assets / liabilities = net worth
You earn $62,000 per year and have a net worth of $20,000. A friend earns $96,000 and has a net worth of $15,000. Who is wealthier?
You, because your income minus your net worth is a smaller amount than your friend.
Your friend, because their income minus their net worth is a larger amount than yours.
You, because your net worth is higher.
Your friend, because their annual income is higher than yours.
You are writing down your liabilities to complete your Statement of Financial Position. The item you should include would be:
The market value of your car
The value of your retirement account
The combined total of your savings and checking accounts
The balance on your credit card
To increase your net worth, you could:
Increase your liabilities
Decrease your assets
Increase your market value
Increase your assets
You are putting together an Income and Expense Statement to use to help create a budget for after graduation. Which of the following is not an income source you need to include for this statement?
Interest earned on your savings account.
Money received from grandparents for your birthday.
Social Security income you receive since your father died of cancer.
Taxes you paid based on your income last year.
Which of the following would most likely be considered a contractual expense?
Cell Phone Plan
Food
Entertainment
Clothing
You are developing an Income and Expense Statement and you need to categorize items into income and expenses. Which should be recorded as expenses?
Taxes deducted from your paycheck, money saved from your paycheck for emergencies, and your car insurance
Money saved from your paycheck for emergencies, interest paid on your car loan, your tax refund from filing last year’s tax return
The scholarship you receive for studying Chinese at the local community college, your car insurance payment, and stock dividends you received from your grandmother
Clothing you purchased for a job interview, tuition for a class you are taking at the local community college, and interest from your savings account
You just finished your Income and Expense Statement for last month. You discovered you have a net gain. What does this mean and what should you do?
You are spending more money than you are earning. You need to find a way to balance your income and expenses by spending less on non-contractual expenses.
You are earning more money than you are spending. You could place additional money in savings and/or spend it on other expenses.
You are spending more money than you are earning. You should consider getting a second job for a time to help boost your income.
You are earning more money than you are spending. You should increase spending for non-contractual items to bring your income into balance with expenses.
If expenses were to exceed income on a spending plan, what would be a financially smart solution?
Decrease expenses
Use a credit card more often
Earn less income
Increase purchases
You have decided to develop a spending plan to help gain control over your finances. Which of the following statements is NOT TRUE about spending plans?
Spending plans are used to record planned income.
Spending plans are used to record planned expenses.
A spending plan includes items NOT usually included when creating a budget.
When creating a spending plan, it is recommended that you examine your trade-offs and opportunity costs.
When is your spending plan complete?
When you have allocated all your income into categories for the month.
When you have all of your current income and expenses recorded.
Spending plans are always under revision so they are never complete.
Spending plans are complete each December 31st as one year ends and another year begins.
You decided to create a spending plan so you can build up an emergency fund. You learned in class that you could probably reduce your spending the most by looking at your non-contractual expenses. Which of these expenses best fit that category?
Cell phone bill, gasoline, and car payment
Internet bill, entertainment, and clothing
Motorcycle payment, food, and cell phone bill
Gasoline, food, and entertainment
Once you have determined your financial goals, what is the next step in developing a spending plan?
Track your current income and expenses with an Income and Expense Statement.
Determine your net worth.
Allocate money to each category.
Develop a control system that will work for your lifestyle.
This statement summarizes your financial transactions (money received and money spent) over a period of time.
Statement of Financial Position
Income and Expense Statement
Credit Card Statement
Net Worth Statement
The value you give up when you make one choice instead of another is called
Expenses
Liabilities
Opportunity Cost
Trade Off
Something you own is called an
Liability
Asset
Net Worth
Budget
Something you owe is called a
Liability
Asset
Net Worth
Budget
According to the suggested spending categories we examined in class, what percentage of your income should be allocated to savings and investing?
5%
25-30%
5-7%
10-15%
This statement tells you what you are worth right now.
Statement of Financial Position
Spending Plan
Income and Expense Statement
Bank Statement
Money earned from working for pay is
Unearned Income
Expense
Earned Income
Asset
If you have a net loss on your income/expense statement, your ______________________ will decrease.
Net Worth
Gross Income
Monthly Expenses
Tax Refund
This statement helps you plan your future financial transactions.
Spending Plan
Income and Expense Statement
Bank Statement
Statement of Financial Position
Apps, computer software, the Envelope System and check registers can all be used as:
Budgets
Spending Plans
Control Systems
Statements
