1. QUESTION 1.When constructing a budget, it is helpful to use a personal cash flow statement, which measures a person's __________ and __________. assets; expenses assets; liabilities cash inflows; cash outflows None of the above

2. QUESTION Many individuals tend to _________ their cash inflows and __________ their cash outflows. underestimate; overestimate accurately estimate; underestimate overestimate; accurately estimate overestimate; underestimate

3. QUESTION The personal __________ summarizes your assets (what you own), your liabilities (what you owe), and your net worth (assets minus liabilities). statement of retained earnings balance sheet statement of cash flows income statement

4. QUESTION The balance sheet is a financial statement that describes a person's financial position at a given point in time The balance sheet equation is: ___________________+_________= Net worth

5. QUESTION Jenny Santana is developing an annual budget based only on her monthly cash flows. In a typical month, Jenny experiences cash inflows of $2,200 and cash outflows of $1,500. Based on this information, Jenny's net cash flow in the annual budget is $7,700. $700. $8,400. $9,100.

6. QUESTION __________ assets include items normally owned by a household, such as a home, a car, and furniture. Liquid Household Investment None of the above

7. QUESTION Sarah Evans has total assets of $10,000, including a car that is currently worth $1,500. Sarah's liabilities total $5,000. Based on this information, Sarah's net worth is $5,000. - $10,000. - $5,000. $10,000.

8. QUESTION Financial Ratios are used to determine your financial position and show your financial______________ AND_________

9. QUESTION Debt ratio is the ratio which shows relationship between debt and____ ______

10. QUESTION. Which of the following has the biggest effect on your credit score? A. The number of credit cards you have. B. Your payment history. C. The amount of your credit you have utilized. D. They all have the same effect on your credit score.

11. ANSWER Your payment history has the biggest affect on your score. It accounts for approximately 35% of your score, so you can help protect your credit score by making payments on time and in full. Your credit utilization is also important, so avoid using more than 50% of your available credit.

12. QUESTION If you have several debts, which one should you try to pay off first? A. The debt with the highest interest rate. B. The largest debt. C. The debt that is tax deductible. D. The debt most recently incurred.