random finance practice exam

The main goal of personal financial planning is…? acheiving personal economic satisfaction
adult life cycle == ?? the stages that an individual goes thru based on age, financial needs, and family situation
liquidity == ? the ability to convert financial resources into usable cash with ease
What type of computation is used to determine current value of a desired amount for the future? Present value of a single amount
What is the first step of the financial planning process? Analyze your current personal and financial situation.
What is the uncertainty associated with decision making? risk
What is the financial planning process’s last stage? The financial planning process concludes with efforts to review and revise your actions.
What is more advantageous? A) tax-deferred benefit or B) tax-exempt employee benefit? Tax-exempt employee benefit is more advantageous
Federal tax-deferred employee benefits are…? taxed at some point in the future
True or False: Take-home pay is a person’s earnings after deductions for taxes and other items. True
A home file should be used for…? financial records for current needs
Which of the following are considered to be personal financial statements? A. budget and credit card statementsB. balance sheet and cash flow statementC. checkbook and budgetD. tax returnsE. bank statement and savings passbook B
What does a personal balance sheet present? items owned and amounts owed
What best presents financial position of a family or individual? balance sheet
family plans to spend 370, but only spends 348. so it is called a …? variance
savings ratio formula I think it’s savings/gross income?
An exclusion is…? An exclusion is earnings not included in taxable income.
Exemptions are deductions for yourself, your spouse, and qualified dependents that you can deduct from adjusted gross income. TRUE or FALSE? True
Estate tax is at death? yes
Alimony payments are notable b/c… they are deducted from gross income to obtain adjusted gross income
A deduction from adjusted gross income for yourself, your spouse, and qualified dependents is: exemption
tax credit reduces wat substracted directly from taxes owed
form 1040 helpful for someone who itemizes deductions
Schedule A itemized deductions are recorded on schedule A

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