B/M Ess. CH 16 Review

A record of your assets and liabilities is called a cash flow statement.

• True

• False

A budget can help you buy wisely and avoid credit problems.

• True

• False

A difference between actual spending and budgeted spending is called budget variance.

• True

• False

Financial planning will ELIMINATE your financial uncertainties.

• True

• False

Estate planning is the process of purchasing a large mansion and surrounding property.

• True

• False

The difference between your personal assets and your personal liabilities is your...

• cash inflow

• net worth

• cash outflow

A personal balance sheet would report all except...

• net income

• amount in your checking account

• value of your car

Take-home pay is the amount you have left in your paycheck

• after taxes and deductions

• before taxes and deductions

• before you pay your bills for the week

Setting financial goals is the ______ step in creating and using budget

• 1st

• 2nd

• 3rd

Which of the following is a fixed expense?

• food

• utilities

• rent