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43 Cards in this Set

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Chapter 1&2


which of the following is NOT an asset you might find on a personal balance sheet.

inventory

Persons property , car and furniture is called

household assets

when a person owns corporate stocks, government or corporate bonds, or mutual funds, these are called

investment assets

balance sheet assets should be valued at

fair market value

bills that are to be paid off within a year are called

current liabilities

student loans,car loans and housing loans are good examples of

long-term liabilities

The diffference between assets and liabilities is called

net worth

another term for ur wealth calculated by deducting money that you owe from the value of the things you own is

net worth

a personal balance sheet presents

items owned and amount owed

a personal balance sheet summarizes

assets,liabilities and net worth

Chapter 3


an ordinary annuity can be defined as

a series of equal payments at the end of each period

which of the following is NOT an annuity

monthly utility bills

the process of obtaining ___ values is referred to as compounding

future

the accumulation of interest over time is called

compounding

which of the following is not an example of a future value

the balance in your checking account today

the process of obtaining ___ values is referred to as discounting

present

future and present values are dependent upon all of the following EXCEPT

annual income

the future value of your saving and debt affect all EXCEPT

marketing management

present and future values concepts are applied to which of the following decisions EXCEPT

annual cash inflows

present and future values concepts are NOT applied to which of the following

the balance of your checking account today

as the time period until reciept increases, the present value of an amount at a fixed interest rate

decreases

Chapter 4


the standard deduction (assuming you are not over 65 or blind) is largest for

married filing jointly

the standard deduction is smallest for

single filers, assuming under age 65

which of the following is not a legitimate itemized deduction

interest paid on credit cards

__ are specific expenses instead of a standard amount that reduce adjusted gross income

itemized deductions

an expense that could be included in the itemized deductions of a taxpayer is

real estate property taxes

purchasing which of the following items on credit will help reduce your tax bill

home

you should claim itemized deductions if

itemized deductions exceed the standard deductions

the knowledge of tax laws can help

protect the transfer of your wealth at ur death


conserve your income


enhance your investments

a branch of U.S Treasury Department called the __ administers the federal tax system

Internal Revenue Service

FICA taxes include 2 components which consist of

retirement and medicare contributions

ax form is generally used by taxpayers whose filing status is married, has no dependents and whose taxable income if less than 100,000

1040

Chapter 5-7


which of the following is NOT true regarding certificates of deposit(CDs)

all banks offer the same rates on CDs

sThe __ is the return on an investment that is guarenteed for a specified period

risk-free rate

in saving or investing the __ the risk, the __ the return

higher, higher & lower,lower

___ management is a series of decisions made over a short term period regarding cash inflows and outflows

Money

Your ability to cover any short-term cash deficiencies is called

liquidity

a disadvantage of using credit as a source of liquidity is the

potential cost of finance charges

in general the more liquid an investment is the ___ the return you will recieve

lower

the ability to save funds is __ when credit payments are

reduced , large


increased, small

the impact of credits __saving and __spending

decreases, increases

improper use of credits may

make it necessary to file for bankruptcy

the cost of using credit may result in __ spending and __ debt

excessive, increased