Finance CH. 2 - Question 1 0.5 out of 0.5 points A budget...

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Question 1 0.5 out of 0.5 points A budget that can be kept on notebook paper or budgeting paper is called a Selected Answer: Written budget Correct Answer: Written budget Question 2 0.5 out of 0.5 points Financial records that may need to be referred to on a regular basis should be kept in a safe-deposit box. Selected Answer: False Correct Answer: False Feedback: These should be kept in a home file. Question 3 0 out of 0.5 points A budget that involves envelopes, folders or containers to hold money or slips of paper is called a Selected Answer: Allocated budget Correct Answer: Physical budget Question 4 0 out of 0.5 points Which of the following ratios indicates the number of months in which living expenses can be paid if an emergency arises? Selected Answer: Debt payments ratio Correct Answer: Liquidity ratio Question 5 0 out of 0.5 points The statement that includes liquid assets, real estate, personal possessions, and investment assets is known as a Selected Answer: Cash flow statement. Correct Answer: Personal balance sheet. Question 6 0 out of 0.5 points
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The money left over after paying for housing, food, and other necessities is called Selected Answer: Disposable income Correct Answer: Discretionary income Question 7 0.5 out of 0.5 points A family with $45,000 in assets and $22,000 of liabilities would have a net worth of Selected Answer: $23,000 Correct Answer: $23,000 Feedback: Assets - liabilities = $45,000 - 22,000 = $23,000 Question 8 0 out of 0.5 points Disposable income equals Selected Answer: Money left over after paying for housing, food, and other necessities Correct Answer: Take-home pay Question 1 0.5 out of 0.5 points A budget that involves envelopes, folders or containers to hold money or slips of paper is called a Selected Answer: Physical budget Correct Answer: Physical budget Question 2 0.5 out of 0.5 points Which of the following will increase the net worth of a household? Selected Answer: Decrease spending by $5 per day Correct Answer: Decrease spending by $5 per day Question 3 0 out of 0.5 points When creating a personal balance sheet, which of the following is a current liability? Selected Answer: Auto loan Correct Answer: Charge account
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Question 4 0.5 out of 0.5 points Items with value are referred to as Selected Answer: Assets. Correct Answer: Assets. Question 5 0 out of 0.5 points One method to spend more money is to use a direct deposit system from payroll. Selected Answer: True Correct Answer: False Feedback: Direct deposit is one method to make saving easier. Question 6 0 out of 0.5 points Which of the following ratios indicates the amount of a person's earnings that goes for payments for credit cards, auto loans, and other debt (except mortgage)? Selected Answer:
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This note was uploaded on 12/10/2010 for the course FINANCE 123 taught by Professor Dr.sikes during the Spring '10 term at Bossier Parish Community College.

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Finance CH. 2 - Question 1 0.5 out of 0.5 points A budget...

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