Personal Finance Chapters 4-9 Test

Items of value that a person owns

• assets

• financial plan

• cash deficit

• wealth

A spending and saving plan based on expected income and expenses

Match the following

• wealth

• Debts owed to others

• net worth

• an accumulation of assets

• disposable income

• assets minus liabilities

• liabilities

• Costs that can vary each month in both amount and type

• variable expenses

• Money you have left to spend or save after taxes and deductions

Why would you prepare a net worth statement?

An invitation to enter a contract

• offer

• acceptance

• capacity

• warranty

A statement assuring quality and performance of a product or service

• consigner

• counteroffer

• acceptance

• warranty

A person who promises to pay the debt of another person

• capacity

• cosigner

• frauds

• offer

Something of value exchanged for something else of value

• consideration

• notarized

• offer

• capacity

The competence of a party to enter into a contract.

• contract

• cosigner

• capacity

• offer

What is the purpose of the statute of frauds?