personal financial planning exam 1 quizlet
Which one of the following is a liquid asset? Which of the following would not be a factor in evaluating your current financial position? If Jo Ann had $4,000 in liquid assets and $1,000 in current liabilities, she would have a liquidity ratio of. The difference between an ordinary annuity and an annuity due is with an annuity due the payments occur at the ________ of each period. The act of determining how wealth will be distributed before or upon death is. Aaron wants to put $200 per month into an IRA account at 15% for four years. What is Allison's net cash flow for the current month? This month Jim has rent and utilities of $300 and he spent $300 on groceries and $200 on clothing. Which of the following is not an asset you might find on a personal balance sheet? What is his cash inflow this month? Which of the following is not an example of a future value? Earnings on an individual retirement account c. Education IRA earnings used for college expenses d. Income of U.S. citizens working in another country. Personal financial management is important because it a. controls inflation b. lessens economic differences among individuals c. uses money as an end d. makes personal financial goals easier to achieve ANS: D 2. person with money in savings account would SUFFER, 5+ years, saving for retirement, college for your children, owning a home, main characteristics of useful financial goals. Study 32 Personal Financial Management Exam 1 flashcards from Hannah C. on StudyBlue. Assuming the worker works and 8-hour day, has a total tax rate of 70%, an d receives a 5% contribution from his employer to his 401(k), what is the worker's total opportunity cost? From a financial standpoint when should a person start retirement planning and saving? Which of the following would be classified as a short-term goal? Which of the following would not be considered a very good investment? If you have a salary of $30,000, an IRA deduction of $2,000, a standard deduction of $4,400, and a FICA rate of 7.65 percent, how much did you pay in FICA this year? Which of these statements is true with regards to the 2008-2009 financial crisis? If Bill wants to increase his savings rate by 2% and he currently saves $6,750, how much additional savings will Bill need to contribute to achieve his savings goal of 11%? what are the four methods of managing risks? what does personal balance sheet tell you about your financial situation? She also has the following monthly expenses: Rent, $750; student loan payment, $200; utilities, $150; food, $300; recreation, $600; car expenses, $200; clothing, $150. What is Jessie's current net worth? The accumulation of interest over time is called. What are the main types of savings plans offered by financial institutions? Which of the following tables should he use? Which of the following items is not impacted by the taxpayer's income level? Learn. Thomas has a full-time job and pays his brother for rent and utilities. Personal Financial Planning at ORU, Prof. Rinne Martin. If I deposit a sum of money today and wish it to double in 10 years, I will need to receive an interest rate of slightly above ________. avoidance- involved the use of legitimate methods to reduce an individuals taxes. Her expenses are $400 per month rent on her apartment, $100 per month for food, and $100 per month for utilities. A personal financial plan involves decisions about financial goals and describes the spending, financing, and investing plans necessary to achieve those goals. b. Budgeting helps set goals by estimating ________ on a monthly basis to determine how much to save and spend. Gross income and adjusted gross income can be the same if you do not have any special adjustments. Many individuals tend to ________ their cash inflows and ________ their outflows. Suppose you can earn 1% per month on $1 invested today (this is the stated value or the APR. Bloomberg delivers business and markets news, data, analysis, and video to the world, featuring stories from Businessweek and Bloomberg News on everything pertaining to technology The time value of money can be applied to all of the following except. Which of the following actions will not increase your net worth? Learn vocabulary, terms, and more with flashcards, games, and other study tools. Which of the following it not an annuity? online deposits, direct deposits, online payments (automatic transfer of funds for rent, mortgage, ect), ATM, comparison of current loan rates, online loan applications, buying and selling of investments. Chapter 1 Personal Financial Planning: An Introduction True/False Questions T F 1. inheritance tax- A tax levied on the value of property bequeathed by a deceased person, payed for the right to acquire the inherited property. Bill's annual savings rate is 9%. With a discount rate of 12%, what is the present value of your winnings? When would you use the standard deduction instead of itemized deductions? The increased mortgage payment was in effect the remainder of the year. car insurance 50/200/75 what do these numbers mean? Which of the following is not a tax credit mentioned in the chapter? Recommend three financial goals and related activities for someone in each of the following circumstances: a. A budget will not do which of the following? If a stock was purchased in January 2009 for $1,000 and sold in December 2010 for $3,000, a ________ of $2,000 results. The average tax rate is calculated by taxes paid/income earned. Personal Financial Planning Exam 1. Jennifer has assets of $100,000 and $10,000 of debt. Personal finance does not include the process of planning your, A personal financial plan specifies financial goals and describes. FICA taxes include two components, which consist of. several tax online software's and human tax preppers, IRS also distributes publications, recorded messages, and walk in assistance for people who do their own taxes. a. Which of the following is not a legitimate itemized deduction? A stream of equal payments either received or paid at equal time intervals is a(n) ________. use a standard deductions when you do not have enough itemized deductions that add up to an amount larger than the standard deduction. View Test Prep - Personal Finance Test Bank Chapter 1-6 from FINANCE 401 at Bloomsburg University. Study Flashcards On Personal Finance Exam 2 at Cram.com. In 2012, self-employed individuals pay FICA taxes at a rate of. ) Nancy also has student loans on which she makes monthly payments of $200. Darlene Elkin has the following financial amounts: checking accounts $850, savings account $3,500, credit card balance $300, jewelry $1,600, real estate valued at $78,000, and a mortgage on the real estate of $23,000. what are three major money management activities? If you are a married taxpayer, you may use the ________ filing status. The higher the rate used in determining the future value of an annuity. Personal Financial Planning Final for Spring Semester 2012. Jerry has assets of $200,000, a net worth of $150,000, and an annual income of $100,000. Cash flows are affected by financial planning decisions. Which of the following does not protect your assets and/or income? they provide a basis for you budget by allowing you to estimate future spending and saving and to form realistic financial goals. If Nancy adheres to this savings plan, how much would she have available each month for a car payment. Your ability to access funds to cover any short-term cash deficiencies is your ________. it consists of assets - liabilities = net worth. Mr. Berkey invests $10,000 in a money market account at his local bank. What is Jane's gain or loss? If your monthly disposable income equals $1,500 and you currently save $500/month, your savings rate is ________. filing status is affected by martial status and dependents, it affects the amount of taxes you owe and the tax forms that you can use. If you prepare a document that shows your cash inflows and cash outflows it is called a(n) ________. Which of the following tables should she use? During 2012, she did not remarry and continued to maintain her home in which her three dependent children lived. Match. If Kim's current debt ratio is 45%, this means that ________ of Kim's assets are purchased on credit. What is the difference between your marginal tax rate and your average tax rate? 1. to report your current financial position in relation to the value of the items you own and the amount you owe. What was the net effect on Fritz's net worth of these transactions? Which of the following tables should she use? Finance Exam 1. actual cash value is where the insured person receives compensation based on the current cost of damage or lost item, 5 factors affect home owners insurance cost, 1. bodily injury liability insurance for an accident you were not responsible for, Automotive liability coverage is usually expressed by three numbers. In budgeting, it is useful to compare ________ with the budgeted amounts to determine the accuracy or error of the budget and adjust it as necessary. Personal Financial planning quiz on credit and basics of financial planning More Financial Management Quizzes Financial Management Quiz: Objectives And Functions! balance sheet and cashflow statement provide info about your current financial situation. 1. handline daily business activities such as paying bills. His employer contributes 10% of Josh's gross earnings to a 401(k). A branch of the U.S. Treasury Department, called the ________, administers the federal tax system. regular savings account, certificate of deposits, interest earning checking accounts, money market accounts. What are examples of deposit-type financial institutions? This is true because. Which of the following will not increase your liquidity ratio? What are some suggested methods to make saving easy? If your current debt to asset ratio is 50%, which of the following will increase it? A high school student with an after-school job and interest earnings of $480 from savings accounts b. Good spelling, grammar, thoughtful analysis B. Which of the following decisions would involve the use of the future value of $1? Which of the following would increase your liquid assets? Which statement is true? Personal Finance Planning Process Chapter Exam Take this practice test to check your existing knowledge of the course material. Learn vocabulary, terms, and more with flashcards, games, and other study tools. In 2012, she sells the stock for $35,000. How many exemptions should George claim on his tax return? Week 1 Chapter 1 Financial Planning Exercise 3. Study Flashcards On CFP Exam Prep Cards - Section 1 - General Principles of Financial Planning at Cram.com. During his ________ your Uncle Harvey decides to cut you out of his will. What financial services are available through online and mobile systems? Online Quiz #1: Chapter 1 — Understanding the Financial Planning Process ACE 240 Online MULTIPLE CHOICE: CHOOSE THE BEST ANSWER 1. Margaret's liquidity ratio is, Nancy has $40,000 of annual disposable income and saves $8,000 a year. A person's net worth would increase as a result of, The net worth of an individual or family can be increased by, The best measure of a person's or family's wealth is, If your cash outflows are $600 and your cash inflows are $1,000, you can increase your net worth by. Terms in this set (60) How do personal and economic factors affect the operation of the financial system and personal financial decisions? A allowable amount which taxpayers can claim for themselves and dependents is called a(n). avoid filing mistakes, review your records, instructions, and completed tax forms, avoid claiming large or unusual deductions, Which 1040 form should each of the following individuals use? Study Personal Finance Test 1 (ch 1-4) Flashcards at ProProfs - personal fina nce test Activity: What Is Personal Finance? The process of obtaining ________ values is referred to as compounding. Test. Standard of Living. To save for her newborn son's college education, Kelli Peterson will invest $1,500 at the end of each year for the next 18 years. If you have current assets of $20,000 and current liabilities of $10,000, then you. Purchasing which of the following items on credit will help reduce your tax bill? The course begins at 5 p.m. and goes until 9 p.m. on Monday nights. Her savings rate is, If you save the same dollar amount from each paycheck during your career as your income increases, your savings rate will. Insurance planning is not designed to protect your wealth in which of the following ways? What are two methods insurance companies use in settling claims? Which cash inflow will probably be discontinued after retirement? What common tax-saving methods are available to most individuals and households? If you own stock that has increased in price, it would be best to sell it after you have owned it for at least. PERSONAL FINANCE Vinay Kshirsagar Omkar Kshirsagar •Planning •Concept •Approach 2. 1. storing and maintaining financial records and documents. In the balance sheet, a(n) ________ in assets ________ net worth. He supports his father who is 90 years old, blind, and has no income. Tax situation 1040EZ 1040A 1040 a. chapter 3: taxes in your financial plans ; chapter 2: using financial statements; exam_1 (quizzes and terms for ch 1,2,3,4,6) chapter 4: the role of cash management in personal financial planning; chapter 2: using financial statements and budgets Which of the following could save a smaller proportion of their earnings to achieve the same level of wealth? Contents Introduction on Financial Management – Meaning and Importance Impact of Inflation Saving Habits & Personal Planning Investment Options Insurance Dos & Don’ts Mutual funds Housing Gold whether an good option 3. In preparation of her 2012 tax return, Stephanie should file as, All reportable income from any source is called, Gross income includes all of the following except. The Personal Financial Planning project requires all but the following item: A. Allison expects her monthly cash inflow after taxes to be $3000. Josh has decided to take a course at the local community college that could help him get a promotion at work. An action plan C. A written report, no less than 2500 words, not including the charts and calculations D. A balance sheet 3. keeping it the same, expanding on the current situation, changing the situation, or an entirely new course of action. Quickly memorize the terms, phrases and much more. PLAY. How does the money market account differ from a money market fund? compounding as it applies to a lump sum or single money amount, compounding as it applies to periodic deposits--stream of equal payments that are recieved/paid at equal intervals in time.
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