Question 1

Jennifer, a recent Concordia graduate, is struggling to pay off her $15,000 student loan. She has found employment with an international firm. Jennifer manages to balance her cash flows, but has only $500 in a chequing account to pay incoming bills. Her monthly after-tax cash inflows and expenses equal $2,000. What should be Jennifer's number one financial goal?

Accepted Answer

A)   Pay off her student loan immediately.
B)   Start an emergency fund.
C)   Contribute to an RRSP.
D)   Purchase life insurance coverage.
E)   Accumulate funds for a down payment on a homeF) A) and B)
G) A) and C)

Question 2

To calculate your net worth, you need to know your:

Accepted Answer

A)   annual income
B)   assets and liabilities
C)   monthly car loan cost
D)   income after tax
E)   pension contributionsF) C) and D)
G) All of the above

Question 3

Total earnings of a person less deductions for taxes and other items is called

Accepted Answer

A)   budgeted income.
B)   gross pay.
C)   net worth.
D)   total revenue.
E)   take-home pay.F) A) and D)
G) B) and D)

Question 4

What types of financial records and documents should be kept in a safety deposit box?

Accepted Answer

Examples of items stored in a safe-depos...

Question 5

A personal cash flow statement can serve as the basis for the budget categories used by an individual or family.

Accepted Answer

A) True 
 B)False

Question 6

A common deduction from a person's paycheck is for

Accepted Answer

A)   interest.
B)   unemployment
C)   rent.
D)   taxes.
E)   current liabilities.F) B) and D)
G) B) and C)

Question 7

A budget deficit would result when a person's or family's

Accepted Answer

A)   actual expenses are less than planned expenses.
B)   actual expenses are greater than planned expenses.
C)   actual expenses equal planned expenses.
D)   assets exceed liabilities.
E)   net worth decreases.F) B) and E)
G) A) and B)

Question 8

A five-year non-redeemable GIC is classified as a(n)  _______________ asset on the personal balance sheet.

Accepted Answer

A)   liquid
B)   investment
C)   personal
D)   business
E)   marketableF) D) and E)
G) C) and D)

Question 9

To determine a person's solvency, which financial document should be consulted?

Accepted Answer

A)   Cash flow statement
B)   Budget
C)   Debt consolidation statement
D)   Personal balance sheet
E)   Credit reportF) A) and E)
G) A) and C)

Question 10

A decrease in net worth would be the result of:

Accepted Answer

A)   income greater than expenses for a month.
B)   expenses greater than income for a month.
C)   assets greater than expenses.
D)   increased earnings on the job.
E)   income and expenses equal for a month.F) A) and E)
G) B) and C) B

Question 11

Liquid assets refer to

Accepted Answer

A)   amounts that must be paid soon.
B)   amounts on which taxes must be paid
C)   total income available to a family for spending.
D)   the value of investments.
E)   items that are easily converted to cash.F) C) and D)
G) A) and E)

Question 12

A brokerage statement is an example of a(n)  ____________ record.

Accepted Answer

A)   investment
B)   insurance
C)   estate planning
D)   tax
E)   consumer purchaseF) A) and E)
G) B) and C)

Question 13

Take-home pay is a person's earnings after deductions for taxes and other items.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following financial documents would most likely be stored in a safety deposit box?

Accepted Answer

A)   Tax records
B)   Personal financial statements
C)   Warranties
D)   Mortgage papers
E)   Checking account statementsF) A) and E)
G) C) and D) D

Question 15

A person's net worth is computed by

Accepted Answer

A)   subtracting total liabilities from total assets.
B)   deducting current living expenses from total assets.
C)   adding assets and liabilities
D)   subtracting assets from current liabilities.
E)   adding liabilities and budgeted expenses.F) All of the above
G) B) and C) A

Question 16

Payments that do not vary from month to month are ____________ expenses.

Accepted Answer

A)   variable
B)   current
C)   fixed
D)   discretionary
E)   budgetedF) B) and C)
G) B) and D)

Question 17

Opportunity costs are not only associated with money management decisions involving long-term financial security.

Accepted Answer

A) True 
 B)False

Question 18

Ed Bostrom wants to reduce his fixed expenses. What action would be appropriate?

Accepted Answer

A)   Get a part-time job
B)   Eat more meals at home than in restaurants
C)   Find a place to live with a lower rent
D)   Save more money for the future
E)   Buy on credit for items that might cost more laterF) All of the above
G) B) and E)

Question 19

When it comes to savings, most Canadians

Accepted Answer

A)   have an adequate emergency fund.
B)   use several different savings techniques.
C)   find saving difficult.
D)   keep substantial amounts in a regular savings account.
E)   reduce the amount they save during their working life.F) A) and B)
G) None of the above

Question 20

Which of the following would be considered a long-term liability?

Accepted Answer

A)   A charge account payment
B)   A mortgage
C)   An installment loan
D)   An amount due for taxes
E)   The amount due on a credit cardF) A) and B)
G) A) and C)

Exam 2: Money Management Strategy: Financial Statements and Budgeting

Correct Answer
verified

To calculate your net worth, you need to know your:

Correct Answer
verified

Total earnings of a person less deductions for taxes and other items is called

Correct Answer
verified

What types of financial records and documents should be kept in a safety deposit box?

Correct Answer
verified
Examples of items stored in a safe-depos...
View Answer

A personal cash flow statement can serve as the basis for the budget categories used by an individual or family.

Correct Answer
verified

A common deduction from a person's paycheck is for

Correct Answer
verified

A budget deficit would result when a person's or family's

Correct Answer
verified

A five-year non-redeemable GIC is classified as a(n) _______________ asset on the personal balance sheet.

Correct Answer
verified

To determine a person's solvency, which financial document should be consulted?

Correct Answer
verified

A decrease in net worth would be the result of:

Correct Answer
verified
B

Liquid assets refer to

Correct Answer
verified

A brokerage statement is an example of a(n) ____________ record.

Correct Answer
verified

Take-home pay is a person's earnings after deductions for taxes and other items.

Correct Answer
verified

Which of the following financial documents would most likely be stored in a safety deposit box?

Correct Answer
verified
D

A person's net worth is computed by

Correct Answer
verified
A

Payments that do not vary from month to month are ____________ expenses.

Correct Answer
verified

Opportunity costs are not only associated with money management decisions involving long-term financial security.

Correct Answer
verified

Ed Bostrom wants to reduce his fixed expenses. What action would be appropriate?

Correct Answer
verified

When it comes to savings, most Canadians

Correct Answer
verified

Which of the following would be considered a long-term liability?

Correct Answer
verified

Exam 2: Money Management Strategy: Financial Statements and Budgeting

Correct AnswerverifiedShow Answer

To calculate your net worth, you need to know your:

Correct AnswerverifiedShow Answer

Total earnings of a person less deductions for taxes and other items is called

Correct AnswerverifiedShow Answer

What types of financial records and documents should be kept in a safety deposit box?

Correct AnswerverifiedExamples of items stored in a safe-depos...View AnswerShow Answer

A personal cash flow statement can serve as the basis for the budget categories used by an individual or family.

Correct AnswerverifiedShow Answer

A common deduction from a person's paycheck is for

Correct AnswerverifiedShow Answer

A budget deficit would result when a person's or family's

Correct AnswerverifiedShow Answer

A five-year non-redeemable GIC is classified as a(n) _______________ asset on the personal balance sheet.

Correct AnswerverifiedShow Answer

To determine a person's solvency, which financial document should be consulted?

Correct AnswerverifiedShow Answer

A decrease in net worth would be the result of:

Correct AnswerverifiedB

Liquid assets refer to

Correct AnswerverifiedShow Answer

A brokerage statement is an example of a(n) ____________ record.

Correct AnswerverifiedShow Answer

Take-home pay is a person's earnings after deductions for taxes and other items.

Correct AnswerverifiedShow Answer

Which of the following financial documents would most likely be stored in a safety deposit box?

Correct AnswerverifiedD

A person's net worth is computed by

Correct AnswerverifiedA

Payments that do not vary from month to month are ____________ expenses.

Correct AnswerverifiedShow Answer

Opportunity costs are not only associated with money management decisions involving long-term financial security.

Correct AnswerverifiedShow Answer

Ed Bostrom wants to reduce his fixed expenses. What action would be appropriate?

Correct AnswerverifiedShow Answer

When it comes to savings, most Canadians

Correct AnswerverifiedShow Answer

Which of the following would be considered a long-term liability?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified
Examples of items stored in a safe-depos...
View Answer

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Correct Answer
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Correct Answer
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Correct Answer
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B

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D

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A

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Correct Answer
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