Quiz 1 Review BM151

Mr. Jones has liabilities in the amount of $5,000 and net worth of $20,000. What is his Debt Ratio?

Cash Flow is the actual inflow and outflow of cash during a given time period.

Ms. Harrison has total assets of $150,000 and total liabilities of $60,000. What is her Net Worth?

What is a tax levied on the value of property bequeathed or left by a deceased person?

Long-Term Liabilities are debts that are required to be paid in 6 months.

Opportunity cost is what a person gives up by making a choice.

Taxes owed could be reduced by a tax credit.

The Basics of Federal Income Tax DOES NOT include:

Sean has a taxable income of $60,000 and a total tax bill of $5,000. What is his average tax rate?

These are all the steps to creating a Cash Flow Statement EXCEPT:

What is the name of my Magazine?

What would be the annual % yield for a savings account that earned $125 on a balance of $3500 over the past year?

Surplus is the amount of which actual spending is less than planned spending.

Adjusted Gross Income is gross income after certain reductions have been made.

Present Value is the current value for a future amount based on a certain interest rate and a certain time period.

A Credit Union is a traditional association specializing in savings accounts and mortgages.

Tax shelter is an investment that provides immediate tax benefits & reasonable expectation of a future financial return

Effective Financial Planning includes all steps EXCEPT:

Present value computations which allow you to determine how much to deposit now to obtain a desired total in the future:

A Budget is a specific plan for spending income; also called a spending plan.

Liquid Assets allow you to withdraw your money on short notice without a loss of values and fees.

If you earned a 4.5 percent return on your savings, with a 16 percent tax rate, what is the after-tax rate of return?

A financial plan is a formalized report that summarizes your current financial situation & analyzes your financial needs

Economics is the stages in the family situation and financial needs of an adult.

The following are examples of checking accounts EXCEPT:

Gross Salary $54,000 Dividend Income $100 Interest Earnings $80, $12,000 Standardized Deductions Taxable income is:

Inflation is the DECREASE in the general level of prices.

A trust is a legal agreement that provides for the management & control of assets by 1 party for the benefit of another.

A tax audit is the total tax due divided by taxable income.

What is the Future Value of $200 if you deposited it into a 5 percent account for 1 year?

Ms. Jackson has total assets of $200,000 and total liabilities of $60,000. What is her Net Worth?

Savings is a type of financial services providing mortgages for future use.

The following are all personal financial statements EXCEPT:

These are the different types of income EXCEPT:

How much interest would a person earn for $500 deposit at 6 percent for a period of 6 months?

Which type of financial institution is owned by depositors and also specializes in savings accounts and mortgages?

Discretionary Income is the inflows of cash to an individual or a household.

Total Tax Due divided by Taxable Income is Exemption.

What is the increase in an amount of money as a result of interest earned?

Which type of Certificate of Deposit offers an opportunity to withdraw money without a penalty?