Ch 16: Financial Planning

A W-2 is a summary of a worker’s earnings for the previous year and includes the amount deducted for taxes.

A balance sheet reports assets, liabilities, and net worth on a given date.

• True

• False

A cash flow statement examines changes in the value of your personal assets.

Type: True or False

A tax credit is the amount on which taxes are calculated.

• True

• False

The process of good money management should start with knowing your current financial status.

Type:True or Falsse

A cash flow statement can help you develop and determine budget categories.

• True

• False

Tax laws and tax forms seldom change.

Financial planning generally reduces an individual’s financial uncertainties.

• True

• False

All people have basically the same financial planning goals regardless of which stage of life they are in.

• True

• False

An amount of money an insurance company pays to a person who has previously deposited money with the company is called a pension.

• True

• False