stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
PBMF Chapter 16 Test Review Flashcards | StudBud
Explore
/
PBMF Chapter 16 Test Review
PBMF Chapter 16 Test Review
28 terms
·
StudBud Administration
·
2,332 plays
Imported from external platform
Flashcards
28 cards
F
Practice quiz
P
Host live
L
Questions
28
Answers
1
Financial planning generally reduces an individual’s financial uncertainties.
True
False
2
Which of the following is a variable expense?
insurance premium
groceries
rent
mortgage payment
3
Which of the following would be a personal asset?
your car payment
your personal computer
your home mortgage
your college loan
4
If you have a budget, you should
all of the choices
be able to buy anything you want.
learn how to plan for financial emergencies.
never buy anything on credit.
5
If actual spending is greater than planned, it is referred to as a
surfeit
liability
deficit
surplus
6
Federal tax return mistakes can be avoided by
all of the above.
filing online or mailing your return before the deadline.
using the tax forms tax tables and correct filing status
signing the completed return
7
A W-2 is a summary of a worker’s earnings for the previous year and includes the amount deducted for taxes.
False
True
8
The sales tax applied to gasoline and cigarettes is a(n)
estate tax
excise tax
income tax
gift tax
9
The process of good money management should start with knowing your current financial status.
False
True
10
A successful budget
should never show any variances.
should not need to be re-evaluated once it is in place.
should reflect current and future income.
should be flexible.
11
Tax laws and tax forms seldom change
False
True
12
A balance sheet reports assets, liabilities, and net worth on a given date.
False
True
13
Your net worth is
the difference between your personal assets and your liabilities.
the total value of your personal assets.
what you have left over in your paycheck after deductions are taken out.
the total amount of all of your investments.
14
Your birth certificate & Social Security card would likely be in which category of your financial records filing system?
tax records
personal records
money management records
housing records
15
Which of the following would probably be a short-term financial goal?
buying a new luxury automobile
purchasing a new CD
going to college
going on a three week cruise
16
This part of Social Security provides death benefits to dependents of workers who die.
retirement insurance
survivors insurance
unemployment insurance
disability insurance
17
All of the following are examples of tax deductions EXCEPT
certain medical expenses
charitable contributions
interest paid on home mortgage
rent expense
18
A cash flow statement examines changes in the value of your personal assets.
False
True
19
Which of the following correctly shows the budgeting process?
set goals, maintain records, plan categories, evaluate
plan categories, set goals, maintain records, evaluate
maintain records, plan categories, evaluate, set goals
set goals, plan categories, maintain records, evaluate
20
Wages, salary, commission, fees, tips, and bonuses are
interest income.
tax-deferred income.
earned income.
tax-exempt income.
21
A pension is the amount of money an insurance company pays to a person who has previously deposited money.
False
True
22
One of the first things you should do as part of the financial planning process is to
develop financial goals
begin searching for a better-paying job
purchase life insurance
create a balance sheet and cash flow statement
23
A tax credit is the amount on which taxes are calculated.
False
True
24
A cash flow statement can help you develop and determine budget categories
false
true
25
When you make a loan payment, your
cash outflows decrease
net worth is unaffected
liabilities decrease
net income increases
26
All people have basically the same financial planning goals regardless of which stage of life they are in.
True
False
27
Take-home pay is
the amount of a paycheck before taxes and other payroll deductions.
cash inflows minus cash outflows.
the money you have available to spend
the amount you will receive when you cash your paycheck.
28
This tax-sheltered retirement plan allows people to invest annually, the funds are taxed if withdrawn after age 59 1/2.
Social Security
annuity
pension
individual retirement account
