Primary goal of financial planning

Assignment Help Finance Basics

Reference no: EM13791635

1) For most people, the first obstacle is to correctly assess their true net income.

2) Salary or wages are the only cash inflows for working people.

3) Cash outflows represent your liabilities such as the pay-off on your car or home.

4) Net cash flows are the difference between cash inflows and cash outflows and can be either

5) The primary goal of financial planning is to

A) increasing earnings.
B) maximize cash inflows.
C) maximize wealth.
D) minimize financial risk.

6) The personal cash flow statement measures

A) the rate of cash flow.
B) cash outflows only.
C) cash inflows and outflows.
D) cash inflows only.

7) The cash flow statement reports a person's or family's

A) net worth.
B) current income and payments.
C) plan for borrowing.
D) value of investments.

8) Creating a cash flow statement requires that you determine

A) assets.
B) liabilities.
C) cash used for expenses.
D) market value of investments.

9) Which of the following is not a cash inflow?

A) Interest received
B) Dividend income
C) Car payment
D) Salary

10) Jim has $1,000 income from his job and $200 stock dividend income this month. This month Jim has rent and utilities of $300 and he spent $300 on groceries and $200 on clothing. What is his cash inflow this month?

A) $1,200
B) $400
C) $600
D) $500

11) Cash outflows are also called

A) assets.
B) expenses.
C) income.
D) liabilities.

12) Which of the following is not a cash outflow?

A) Salary
B) Rent
C) Telephone bill
D) Car payment

13) Jeff has a $1,000 salary and a $100 dividend income this month. This month Jim has rent and utilities of $300 and he spent $200 on groceries and $100 on clothing. What is his net cash flow this month?

A) $400
B) $600
C) $500
D) $1,100

14) If you prepare a document that shows your cash inflows and cash outflows it is called a(n) ________.

Reference no: EM13791635

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