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36 Cards in this Set
- Front
- Back
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a tax is a charge imposed by federal, state, and local governments to finance public services |
True |
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a record of your assets and liabilities is called a cash flow statement |
False |
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a budget can help you buy wisely and avoid a cash flow statement |
True |
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an expense is the amount of money you plan to use for a certain budget category |
False |
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a difference between actual spending and budgeted spending is called a budget variance |
True |
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using your checkbook as a budgeting system does not serve the purpose of planning for spending |
True |
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a gift tax is based on the value of a person's property at death |
False |
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a tax deduction is an amount that increases taxable income |
False |
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your financial needs will change as you move through your life |
True |
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estate planning is the process of purchasing a large mansion and surrounding property |
False |
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The difference between you personal assets and your personal liabilities is your a) cash inflow b) net worth c) cash outflow d) net income |
b) net worth
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A personal balance sheet would report all of the following EXCEPT a) net income b) amount in your checking account c) value of your car d) home mortgage |
a) net income
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Take-home pay is the amount you have left in your paycheck a) after you pay your bills for the week b) after taxes and deductions c) before taxes and deductions d) before you pay your bills for the week |
b) after taxes and deductions |
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Setting financial goals is the _________ step in creating and using a budget. a) first b) second c) third d) final |
a) first |
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Which of the following is a fixed expense? a) food b) utilities c) clothing d) rent |
d) rent |
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Which of the following can best help you develop budget categories and provide a basis for your budget? a) paycheck stub b) balance sheet c) cashflow statement d) cost benefit analysis |
c) cashflow statement
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This tax is based upon the value of land and buildings a) income tax b) sales tax c) gift tax d) real estate and property tax |
d) real estate and property tax |
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A good first step in financial planning would be to a) hire a professional financial planner b) create a balance sheet and cash flow statement c) pay off all of your debts d) develop long term financial goals |
b) create a balance sheet and cash flow statement |
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This insurance provides cash payments for a limited time to individuals who are out of work for a reason other than illness a) disability income insurance b) survivors insurance c) unemployment insurance d) retirement insurance |
c) unemployment insurance |
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A person's taxes can be reduced by a) exemptions b) a tax credit c) donations to charitable organizations d) all are true |
d) all are true |
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The amount on which taxes are calculated after adjustments, deductions, and exemptions. |
taxable income
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Occurs when actual spending is greater than budgeted spending. |
deficit
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A series of regular payments made to a retired worker under an organized plan. |
pension
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Items of value, such as bank accounts, jewelry, and automobiles. |
personal assets
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The amount of paycheck after taxes and other payroll deductions. |
net income
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A report that summarizes your current financial condition and sets a direction for future financial activities. |
financial plan
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Amounts spent on food, clothing, and other living costs. |
cash outflows
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An amount of money an insurance company pays to a person who has previously deposited money with the company. |
annuity
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Occurs when actual spending is less than budgeted spending. |
surplus
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The agency responsible for collecting federal income tax. |
Internal Revenue Service
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most financial advisors tell you to do what first |
pay yourself |
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_______________________________ refers to the day-to-day financial activities associated with using limited income to satisfy unlimited needs and wants |
money management |
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A ____________________ reports net wages and other income along with spending for a period. |
cash flow statement |
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________________ expenses occur regularly and are for the same amount; ______________ expenses differ each time. |
fixed; variable |
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___________________ includes evaluating your financial position and setting financial goals. |
financial planning |
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A ____________________ is an amount that reduces taxable income. |
tax deduction |
