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Finance Flashcards

Finance 1

T Opportunity costs refer to what a person gives up when making a decision T/F
F The financial planning process is complete once you implement your financial plan T/F
T Liquidity is the ability to convert financial resources into usable cash with ease T/F
C The first step of the financial planning process is to A Saving and investing for future needsB implement a Financial planC Analyze your current personal and financial situationD Evaluate and revise your actionsE Create a financial plan of action
E The uncertainty associated with decision making is referred to as:A Opportunity CostB selection alternativesC financial goalsD personal valuesE Risk
A Changes in income, values, and family situation make it necessary to A Evaluate and revise your actionsB Implement the financial planC Develop financial goalsD Analyze your current personal and financial situationE Create a financial plan of action
D An example of a personal opportunity cost would be:A interest lost by using savings to make a purchaseB Higher earnings on savings that must be kept on deposit a minimum of 6 monthsC Lost wages due to continuing as a full time studentD Time comparing several brands of personal computersE changing demographic trends in our society
C Liquidity refers to A The earnings on savingsB The risk on an investmentC The ease of converting a financial resource into cashD The amount of insurance coverage a person hasE A persons inability to pay his or her debts
T A job tends to have less of a long term commitment to a field than a careerT/F
F Changes in family size and marriage rates have not affected the types of jobs that are in demandT/F
F Corporate culture refers to the methods used by an organization to determine the value of employee benefitsT/F
F A mentor refers to the person who is assigned to orient a new person to an organizationT/F
E The first step of the career planning process is to A Evaluate the job marketB Identify potential job opportunitiesC Develop a resume and cover letterD Plan for career growthE Assess your interests, abilities and goals
D A lack of willingness to accept a variety of employment positions is a common career planning mistake associated with weakA Common senseB CommunicationC trainingD FlexibilityE Perseverance
E Which of the following trends is most likely to increase opportunities in manufacturing organizationsA Higher interest ratesB Reduced consumer spendingC Higher consumer spendingD increased importsE increased exports
C Efficient work habits are an attempt of:A On-the-job trainingB Continuing EducationC An employee’s initiativeD Cooperative Education
C Special class projects can be presented on a resume as _____________ experienceA financial planningB SupervisingC ResearchD Personal AdministrationE Budgeting
F Money management activities refers to a long-term investment decisionsT/F
T Insolvency is a result of having more liabilities than assetsT/F
A Liabilities are amounts representing A DebtsB Items of ValueC Living expensesD Taxable incomeE Current assets
F T/F Taxes should only be considered in financial planning in April
F T/F The principal purpose of taxes is to control economic conditions
F T/F Gift amounts over $10,000 are exempt from federal taxes
F T/F Taxable income is the total earnings of a person
F T/F Exemptions are expenses that a taxpayer is allowed to deduct from Adjusted Gross income
T T/F A tax credit is an amount subtracted directly from the amount of taxes owed
F T/F The simplest federal tax return form is the 1040A
F 8. F The Amount of a person’s standard deductions is determined on Schedule A of Form 1040.
T T/F Capital gains refers to profits from sale of investments
T T/F Higher returns on savings will usually result in less liquidity
F T/F A ‘free’ checking account with a minimum balance of $500 has an opportunity cost of lost interest
T T/F Savings and loan associations offer mortgages
T T/F Credit Unions frequently offer lower loan rates than other financial institutions
F T/F Credit cards are a form of revolving credit but Home Equity loans are not
T T/F Credit disability insurance makes loan payments that make loan payments while you are injured or sick

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