Review Game Zone
Flash Cards
(current)
Games
Teachers
Search
PF - 2.03 Statement Of Financial Position
Test Description: Calculating Net Worth
Instructions: Answer all questions to get your test result.
1) Net worth is a measure of your what?
A
Wealth
B
Future Spending Plans
C
Past income and expenses
D
Income
2) What is the formula for Net Worth?
A
Total Assets - Total liabilities
B
Total Liabilities - Total Assets
C
Total Assets + Total Liabilities
D
Total Assets / Total Liabilities
3) Does having a high income indicate that you have a high net worth?
A
No, having a high income always indicates that you have a low net worth
B
No, a person can have a high income and have a low net worth
C
Yes, having a high income always indicates you have a high net worth
D
Yes, your wealth is equal to your income
4) The purpose of this is to show the financial condition of a person or family on a specified date, made up of assets, liabilities, and net worth.
A
Statement of Financial Position
B
Budget
C
Income and Expense Statement
D
Spending Plan
5) What is a Statement of Financial Position also sometime called?
A
Income and Expense Statement
B
Budget
C
Spending Plan
D
Statement of Net Worth or Balance Sheet
6) What are the 3 main components of a Statement of financial position?
A
Income, Assets, and Liabilities
B
Assets, Liabilities, Net gain/loss
C
Assets, Liabilities, Net Worth
D
Income, Expenses, Net gain/loss
7) Everything that a person owns that has a monetary value is referred to as this.
A
Liabilities
B
Net worth
C
Expenses
D
Asset
8) This is a debt or obligation owed to others.
A
Expense
B
Net Worth
C
Asset
D
Liability
9) Balance on a credit card would be placed in this section of a statement of financial position.
A
Monetary Asset
B
Tangible Asset
C
Investment Asset
D
Liabilities
10) Money in a checking account would be placed in this section of a statement of financial position.
A
Liability
B
Monetary Asset
C
Tangible Asset
D
Investment
11) Money in a 401 K or an IRA would be placed in this section of a statement of financial position.
A
Investment Asset
B
Monetary Asset
C
Tangible Asset
D
Liability
12) Car loan would be placed in this section of a statement of financial position.
A
Investment Asset
B
Liability
C
Tangible Asset
D
Monetary Asset
13) You took out a home mortgage for 15 years and you still owe 30,000 but the bank has told you if you paid if off today you could do it for 24,000 because you would avoid the future interest payments. What amount would you record under the liability s
A
6,000
B
24,000
C
30,000
D
54,000
14) Where would things such as bills paid on a regular basis such as gas, power, or rent go on your statement of financial position?
A
Liabilities
B
Monetary Assets
C
Tangible Assets
D
They do not belong on the statement of financial position...they are “Expenses” NOT Liabilities
15) How can you increase your Net Worth?
A
Decrease Assets or Increase Liabilities
B
Decrease Assets or Decrease Expenses
C
You have no control over your Net Worth
D
Increase Assets or Decrease Liabilities
16) How often should you create a Statement of Financial Position?
A
Never, it is not necessary
B
When you are getting married
C
Once a year or during special times when making big decisions about assets and liabilities
D
Every month
17) What does liquidity refer to?
A
How quickly you can purchase an asset
B
How easy it is to pay off a liability
C
How easily you can convert an asset into cash in your hand
D
How easily it is to melt down an asset into liquid
*select an answer for all questions
Check Results & Get Answers
Play Games with the Questions Above
Teachers: Create FREE classroom games with your questions
Click for more info!
©2007-2024
ReviewGameZone.com
|
About
|
Privacy
|
Contact
|
Terms
|
Site Map
WAIT! Find what you needed?
×
Still Looking for the Answers?
Have Another Question?
Play a Review Game with These Questions?
Want to Make Your Own Test Like This One?