REVIEW FOR MMPE07

1. For cash flows, timing is everything.

• True
• False

2. to cut living expenses, to increase savings, or to save for a specific purpose such as education or retirement

• Cash Flows
• Future Value
• Budget

3. Examples of Recurring expenditures

• purchase of durable items
• Electric bill, food expenses
• payment for hospitalization

4. cash flow statements does not show actual cash expenditures

• True
• False

5. Price levels are much quicker to change than wage levels

• True
• False

6. budget is normally project on a ______________

• long term plan
• short term plan
• annually

7. a budget covering all aspects of financial life—will include a projection of recurring incomes and expenses and of nonrecurring expenditures.

• BUDGET
• SPECIALIZED BUDGE
• COMPREHENSIVE BUDGET

8. a compilation of an operating budget for short-term goals involving recurring items and a capital budget for long-term goals involving nonrecurring items.

• BUDGET
• SPECIALIZED BUDGE
• COMPREHENSIVE BUDGET

9. a projection of how things should work out, usually created with a specific goal in mind: to cut living expenses, to increase savings, or to save for a specific purpose such as education or retirement

• BUDGET
• SPECIALIZED BUDGE
• COMPREHENSIVE BUDGET

10. Recurring incomes and expenditures are usually the easiest to determine and project

• TRUE
• False