Test Bank for Personal Finance 7Th Canadian edition By Kapoor
Chapter 02
Money Management Strategy: Financial Statements and Budgeting
True / False Questions
1. When one money management decision is selected, something else must be given up.TRUE
Accessibility: Keyboard NavigationDifficulty: EasyLearning Objective: 02-01 Recognize relationships among financial documents and money management activities.Topic: 02-01 Planning for Successful Money Management
2. Opportunity costs are not only associated with money management decisions involving long-term financial security.TRUE
Accessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 02-01 Recognize relationships among financial documents and money management activities.Topic: 02-01 Planning for Successful Money Management
3. Financial records that may need to be referred to on a regular basis should not be kept in a safety deposit box.TRUE
Accessibility: Keyboard NavigationDifficulty: EasyLearning Objective: 02-02 Create a system for maintaining personal financial records.Topic: 02-04 A System for Personal Financial Records
4. A budget is a record of how a person or family has spent their money.FALSE
Accessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 02-04 Create and implement a budget.Topic: 02-09 Budgeting: A Money Management Skill
5. Personal records current budget, checkbook(s), and bank statements.FALSE
Accessibility: Keyboard NavigationDifficulty: EasyLearning Objective: 02-02 Create a system for maintaining personal financial records.Topic: 02-04 A System for Personal Financial Records
6. Most income tax documents and records should be kept in a safety deposit box.FALSE
Accessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 02-02 Create a system for maintaining personal financial records.Topic: 02-04 A System for Personal Financial Records
7. Insolvency is the inability to pay debts by the due date, because liabilities exceed the value of assets.TRUE
Accessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 02-03 Develop a personal balance sheet and cash flow statement.Topic: 02-05 Personal Financial Statements for Measuring Financial Sustainability
8. A person’s net worth is the difference between the value of the items owned and the amounts owed to others.TRUE
Accessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 02-03 Develop a personal balance sheet and cash flow statement.Topic: 02-05 Personal Financial Statements for Measuring Financial Sustainability
9. Furniture, jewelry, and an automobile are examples of liquid assets.FALSE
Accessibility: Keyboard NavigationDifficulty: MediumLearning Objective: 02-03 Develop a personal balance sheet and cash flow statement.Topic: 02-05 Personal Financial Statements for Measuring Financial Sustainability
10. Current liabilities are amounts that must be paid within a short period of time, usually less than a year.TRUE
Accessibility: Keyboard NavigationDifficulty: EasyLearning Objective: 02-03 Develop a personal balance sheet and cash flow statement.Topic: 02-05 Personal Financial Statements for Measuring Financial Sustainability
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