MM Ch 4

Money or other items of value that re used to acquire good and services

• Needs

• Wants

• Financial Resources

• Disposable Resources

All of the following are needs except:

• Water

• Medical Care

• Car

• Food

When cash outflow exceeds cash inflow you have a

• net gain

• net loss

• positive cash flow

• none of these

True or False: Your wealth can be measured by a personal cash flow statement.

• True

• False

True or False: Savings should be included in your list of cash inflows when creating the personal cash flow statement.

• True

• False

True or False: With every buying decision, there is a tradeoff and an opportunity cost

• True

• False

True or False: If you spend less money on an item than you had planned to spend, this is an unfavorable variance in your budget analysis.

• True

• False

True or False: Financial goals should be set before personal goals, because your personal goals will be dependent upon them.

• True

• False

True or False: A goal you expect to achieve by next year would be classified as a short-term goal.

• True

• False

True or False: One advantage of manual records of financial information is that they do not require protection from unauthorized users and uses.

• True

• False