WGU D363 PRACTICE Q LESSON 1 LATEST UPDATE WITH QUESTIONS
AND CORRECT ANSWERS
Each cmonth cJack cdeposits cmoney cinto chis cpersonal cretirement caccount, cwhich chis cemployer cmatches. cAdditionally, cJack
cdeposits cmoney cinto chis csavings caccount cand can cemergency cfund. cJack's ccar cbreaks cdown cand cneeds crepairs.
Which caccount cshould cJack caccess cfirst? c
His cemergency cfund c
His cemployer-funded cretirement caccount c
His csavings caccount
cHis cpersonal cretirement caccount c- cThe cemergency cfund cexists cfor cevents cJack cdid cnot cpredict, csuch cas cfixing ca ccar cor
creplacing ca cmajor cappliance.
What cshould cbe cdone cfirst cto cmanage cpersonal cspending chabits?
cCreate ca cbudget cthat clists cincome cand cexpenses
cOpen can cinvestment caccount c
Pay coff ccredit ccard cbills cin cfull ceach cmonth
cOpen ca cretirement caccount c- cA cbudget cthat clists cexpenses cand cincome cis cthe cfirst cstep cto cmanaging cpersonal cspending
chabits.
Which cpersonal cfinance cphilosophy cshould cDiego cadhere cto ceach cmonth cin corder cto cwisely cmanage chis cpersonal cspending
chabits?
cDiego cshould cpay chis crent cfirst ceach cmonth.
cDiego cshould csave cmoney cup cfront ceach cmonth.
cDiego cshould cmake ccharitable ccontributions.
cDiego cshould cinvest cin cthe cstock cmarket. c- cWise cmoney cmanagers cpay cthemselves cfirst ceach cmonth cby cputting cmoney
cinto csavings cfirst.
Anika cwants cto cstart csaving cmoney cto cbuy ca cnew ccar. cShe cdecides cto cput ctogether ca cstatement cthat ctracks cher cincome
cand cexpenses cfor ceach cmonth. cShe cwants cto clearn cwhat cspending chabits cshe chas cand cwhere cshe ccan cbe cmore
cresponsible.
Which cstatement cshould cAnika ccreate?
cNet cworth cstatement c
Asset cand cliability cstatement
cGains cand closses cstatement
cCash-flow cstatement c- cA ccash-flow cstatement, calso cknown cas can cincome cand cexpense cstatement, csummarizes cincome cand
cexpense ctransactions cover ca ccertain cperiod cof ctime, cusually cmonthly. cThis cstatement cis cthe cbest cway cto cknow cwhere cyour
cmoney cwent.
Ren ccreates ca cfinancial cstatement cto csee cwhere che cis cfinancially. cHe clists ceverything che cowns cwith cmonetary cvalue, cand
che clists cthe camounts che cowes cothers, cincluding chis ccar cpayment. cThe cgoal cis cto cdetermine chis cnet cworth.
Which cfinancial cstatement cdoes cRen ccreate? c
A cfair cmarket cvalue cstatement c
An cincome cand cexpense cstatement
cGains cand closses cstatement c
A cbalance csheet cstatement c- cA cbalance csheet cstatement cdetails cnet cworth cby clisting cassets, ctheir cvalue, cand cthe cdebts
cowed cto cothers. cThis cstatement cwill chelp cRen cto cdetermine chis cnet cworth.
Eva cis ccreating ca cbalance csheet cfor cherself. cShe clists cher cassets, csuch cas cthe cvalue cof cher chome, cretirement caccount, cand
cthe cextra cplot cof cland cshe cowns. cFinally, cshe clists cher cliabilities, cincluding cthe cmortgage cand cland cbalances.
Assets c: c360k
Liabilities: c100k c- cTo ccalculate cyour cnet cworth, cyou cneed cto csubtract cyour cliabilities cfrom cyour cassets. cThus, c$360,000 ctotal
cassets cminus c$100,000 ctotal cliabilities cequals ca cnet cworth cof c$260,000.
Which ctype cof casset cis can cengagement cring?
cInvestment casset c
Monetary casset
cTangible casset
cShort-term casset c- cGoods csuch cas cjewelry, ctools, cboats, cand celectronics care cexamples cof ctangible cassets.
, Maria cis cmaking ca clist cof call cher cexpenses. cShe cis ctrying cto corganize cthem cinto cthe cappropriate ccategories.
Which ctype cof cexpense cis ctransportation ccosts? c
Recurring c
Tangible c
Variable c
Fixed c- cTransportation ccosts cmay cinclude cgasoline, cmaintenance, cregistration, cinsurance, cand cpublic ctransportation. cSince
cthese ccosts cmay cchange cfrom cmonth cto cmonth, cthey care cvariable ccosts.
Sara cwould clike cto cknow cwhere cshe cstands cfinancially, cthat cis, cher cvalue cwhen cshe csubtracts cher cliabilities cfrom cher
cassets.
What cis cthe cresulting cvalue ccalled? c
Financial cstatement
cFinancial chealth cstatement
cIncome cstatement c
Net cworth c- cNet cworth cis cwhere ca cperson cstands cfinancially cafter csubtracting cliabilities cfrom cassets.
Nora's ccar cbroke cdown, cand cthe cunexpected cout-of-pocket ccost cto cfix cit cwas c$1,000. cNora's cexpenses cnow cexceed cher
cincome cfor cthis cmonth.
What cwill cNora's ccash-flow cstatement cfor cthis cmonth cshow? c
A cvariable closs
cA csurplus c
A cnet cgain c
A cdeficit c- ccorrect:
Because cher cincome cis cless cthan cher cexpenses, cher ccash-flow cstatement cwould cshow ca cdeficit.
Lulu cwants cto ccreate ca cbudget, cbut cshe cdoes cnot cknow cwhere cto cstart.
What cshould ca cfinancial cplanner cadvise cLulu?
cRecord call cexpenses cfor c30 cdays cto csee chow cincome cis ccurrently cbeing cspent cUse conly ca cdebit ccard cfor c30 cdays cto
ceasily ctrack cwhere cmoney cis cbeing cspent cCreate cbudget ccategories cand cestimate cmonthly cexpenses cand cincome cDocument
ca creason cfor ceach cexpense, cwhether cpaid cby ccheck, ccash, cor ccard c- cA cfinancial cadvisor cwould cadvise ctheir cclient cto
crecord call cexpenses cfor c30 cdays cto csee cexactly cwhere cthe cmoney cis ccurrently cbeing cspent.
How cshould ccredit ccard ccharges cbe chandled cwithin ca cpersonal cbudget? c
Credit ccard ccharges cshould cbe crecorded cat cthe ctime cof cthe ctransaction. c
Record ccredit ccard ctransactions conce cthe cmonthly cstatement cis creceived. cCredit ccard ccharges care cnot crecorded cin ca
cpersonal cbudget cbut cinstead cin ctheir cown cworksheet.
cList ccredit ccard ctransactions cin ca cseparate csection cof cthe cpersonal cbudget cfor ctracking cpurposes. c- cFinancial cadvisors
cadvise cclients cto crecord ccredit ccard ccharges cat cthe ctime cof cthe ctransaction cto chave can caccurate cpicture cof cmonthly
cspending.
Diego cwants cto cknow cif che chas cenough cincome cand csavings cto ccover call cof chis cdebt cobligations.
How cshould cDiego canswer cthis cquestion? c
Calculate cthe cdebt cpayments-to-disposable-income cratio c
Calculate cthe casset-to-debt cratio c
Calculate cthe cdebt-to-income cratio
cCalculate cthe cliquidity cratio c- cAsset-to-debt cratio cindicates cif cthere care cenough ccash cassets cto cmeet cthe cdebt cobligations. cA
chigh cratio cis cdesired.
Why cdo cfinancial cexperts csuggest cthat ccouples cclose credundant cbank caccounts?
cTo cimprove ctheir ccredit cscores
cTo chelp cpay coff cdebt cfaster
cTo csave cmoney con cbanking cand caccount cfees
cTo cfacilitate cthe cbudgeting cprocess c- cThe cmore copen cbank caccounts cpartners chave cthe cmore cfees cthey care clikely cto cpay.
cFinancial cexperts csuggest ckeeping conly cessential caccounts.
Nora cwants cto ctake cher cdream cvacation cto cGhana. cShe cneeds cto csave c$5,000 cfor cthe ctrip, cand cshe cwants cto ctravel cin ctwo
cyears.
Which capproach cto csavings cshould cNora cconsider cto cachieve cher cfinancial cgoal? c
Compound c
Short-term
cLong-term c
Intermediate-term c- cIntermediate-term csavings cgoals ccan ctypically cbe creached cin ctwo cto cfive cyears, cfor cexample cputting
cmoney caway cfor can coverseas cvacation.
William ccreates ca cbudget cthat cestimates c$1,750 cfor chis csummer cvacation. cHe cfurther cbreaks cdown cthe ccosts cthis cway:
Hotel c- c$900
Public cTransportation c- c$50
Restaurants c- c$500
Museum cPass c- c$100
Other cEntertainment c- c$200
AND CORRECT ANSWERS
Each cmonth cJack cdeposits cmoney cinto chis cpersonal cretirement caccount, cwhich chis cemployer cmatches. cAdditionally, cJack
cdeposits cmoney cinto chis csavings caccount cand can cemergency cfund. cJack's ccar cbreaks cdown cand cneeds crepairs.
Which caccount cshould cJack caccess cfirst? c
His cemergency cfund c
His cemployer-funded cretirement caccount c
His csavings caccount
cHis cpersonal cretirement caccount c- cThe cemergency cfund cexists cfor cevents cJack cdid cnot cpredict, csuch cas cfixing ca ccar cor
creplacing ca cmajor cappliance.
What cshould cbe cdone cfirst cto cmanage cpersonal cspending chabits?
cCreate ca cbudget cthat clists cincome cand cexpenses
cOpen can cinvestment caccount c
Pay coff ccredit ccard cbills cin cfull ceach cmonth
cOpen ca cretirement caccount c- cA cbudget cthat clists cexpenses cand cincome cis cthe cfirst cstep cto cmanaging cpersonal cspending
chabits.
Which cpersonal cfinance cphilosophy cshould cDiego cadhere cto ceach cmonth cin corder cto cwisely cmanage chis cpersonal cspending
chabits?
cDiego cshould cpay chis crent cfirst ceach cmonth.
cDiego cshould csave cmoney cup cfront ceach cmonth.
cDiego cshould cmake ccharitable ccontributions.
cDiego cshould cinvest cin cthe cstock cmarket. c- cWise cmoney cmanagers cpay cthemselves cfirst ceach cmonth cby cputting cmoney
cinto csavings cfirst.
Anika cwants cto cstart csaving cmoney cto cbuy ca cnew ccar. cShe cdecides cto cput ctogether ca cstatement cthat ctracks cher cincome
cand cexpenses cfor ceach cmonth. cShe cwants cto clearn cwhat cspending chabits cshe chas cand cwhere cshe ccan cbe cmore
cresponsible.
Which cstatement cshould cAnika ccreate?
cNet cworth cstatement c
Asset cand cliability cstatement
cGains cand closses cstatement
cCash-flow cstatement c- cA ccash-flow cstatement, calso cknown cas can cincome cand cexpense cstatement, csummarizes cincome cand
cexpense ctransactions cover ca ccertain cperiod cof ctime, cusually cmonthly. cThis cstatement cis cthe cbest cway cto cknow cwhere cyour
cmoney cwent.
Ren ccreates ca cfinancial cstatement cto csee cwhere che cis cfinancially. cHe clists ceverything che cowns cwith cmonetary cvalue, cand
che clists cthe camounts che cowes cothers, cincluding chis ccar cpayment. cThe cgoal cis cto cdetermine chis cnet cworth.
Which cfinancial cstatement cdoes cRen ccreate? c
A cfair cmarket cvalue cstatement c
An cincome cand cexpense cstatement
cGains cand closses cstatement c
A cbalance csheet cstatement c- cA cbalance csheet cstatement cdetails cnet cworth cby clisting cassets, ctheir cvalue, cand cthe cdebts
cowed cto cothers. cThis cstatement cwill chelp cRen cto cdetermine chis cnet cworth.
Eva cis ccreating ca cbalance csheet cfor cherself. cShe clists cher cassets, csuch cas cthe cvalue cof cher chome, cretirement caccount, cand
cthe cextra cplot cof cland cshe cowns. cFinally, cshe clists cher cliabilities, cincluding cthe cmortgage cand cland cbalances.
Assets c: c360k
Liabilities: c100k c- cTo ccalculate cyour cnet cworth, cyou cneed cto csubtract cyour cliabilities cfrom cyour cassets. cThus, c$360,000 ctotal
cassets cminus c$100,000 ctotal cliabilities cequals ca cnet cworth cof c$260,000.
Which ctype cof casset cis can cengagement cring?
cInvestment casset c
Monetary casset
cTangible casset
cShort-term casset c- cGoods csuch cas cjewelry, ctools, cboats, cand celectronics care cexamples cof ctangible cassets.
, Maria cis cmaking ca clist cof call cher cexpenses. cShe cis ctrying cto corganize cthem cinto cthe cappropriate ccategories.
Which ctype cof cexpense cis ctransportation ccosts? c
Recurring c
Tangible c
Variable c
Fixed c- cTransportation ccosts cmay cinclude cgasoline, cmaintenance, cregistration, cinsurance, cand cpublic ctransportation. cSince
cthese ccosts cmay cchange cfrom cmonth cto cmonth, cthey care cvariable ccosts.
Sara cwould clike cto cknow cwhere cshe cstands cfinancially, cthat cis, cher cvalue cwhen cshe csubtracts cher cliabilities cfrom cher
cassets.
What cis cthe cresulting cvalue ccalled? c
Financial cstatement
cFinancial chealth cstatement
cIncome cstatement c
Net cworth c- cNet cworth cis cwhere ca cperson cstands cfinancially cafter csubtracting cliabilities cfrom cassets.
Nora's ccar cbroke cdown, cand cthe cunexpected cout-of-pocket ccost cto cfix cit cwas c$1,000. cNora's cexpenses cnow cexceed cher
cincome cfor cthis cmonth.
What cwill cNora's ccash-flow cstatement cfor cthis cmonth cshow? c
A cvariable closs
cA csurplus c
A cnet cgain c
A cdeficit c- ccorrect:
Because cher cincome cis cless cthan cher cexpenses, cher ccash-flow cstatement cwould cshow ca cdeficit.
Lulu cwants cto ccreate ca cbudget, cbut cshe cdoes cnot cknow cwhere cto cstart.
What cshould ca cfinancial cplanner cadvise cLulu?
cRecord call cexpenses cfor c30 cdays cto csee chow cincome cis ccurrently cbeing cspent cUse conly ca cdebit ccard cfor c30 cdays cto
ceasily ctrack cwhere cmoney cis cbeing cspent cCreate cbudget ccategories cand cestimate cmonthly cexpenses cand cincome cDocument
ca creason cfor ceach cexpense, cwhether cpaid cby ccheck, ccash, cor ccard c- cA cfinancial cadvisor cwould cadvise ctheir cclient cto
crecord call cexpenses cfor c30 cdays cto csee cexactly cwhere cthe cmoney cis ccurrently cbeing cspent.
How cshould ccredit ccard ccharges cbe chandled cwithin ca cpersonal cbudget? c
Credit ccard ccharges cshould cbe crecorded cat cthe ctime cof cthe ctransaction. c
Record ccredit ccard ctransactions conce cthe cmonthly cstatement cis creceived. cCredit ccard ccharges care cnot crecorded cin ca
cpersonal cbudget cbut cinstead cin ctheir cown cworksheet.
cList ccredit ccard ctransactions cin ca cseparate csection cof cthe cpersonal cbudget cfor ctracking cpurposes. c- cFinancial cadvisors
cadvise cclients cto crecord ccredit ccard ccharges cat cthe ctime cof cthe ctransaction cto chave can caccurate cpicture cof cmonthly
cspending.
Diego cwants cto cknow cif che chas cenough cincome cand csavings cto ccover call cof chis cdebt cobligations.
How cshould cDiego canswer cthis cquestion? c
Calculate cthe cdebt cpayments-to-disposable-income cratio c
Calculate cthe casset-to-debt cratio c
Calculate cthe cdebt-to-income cratio
cCalculate cthe cliquidity cratio c- cAsset-to-debt cratio cindicates cif cthere care cenough ccash cassets cto cmeet cthe cdebt cobligations. cA
chigh cratio cis cdesired.
Why cdo cfinancial cexperts csuggest cthat ccouples cclose credundant cbank caccounts?
cTo cimprove ctheir ccredit cscores
cTo chelp cpay coff cdebt cfaster
cTo csave cmoney con cbanking cand caccount cfees
cTo cfacilitate cthe cbudgeting cprocess c- cThe cmore copen cbank caccounts cpartners chave cthe cmore cfees cthey care clikely cto cpay.
cFinancial cexperts csuggest ckeeping conly cessential caccounts.
Nora cwants cto ctake cher cdream cvacation cto cGhana. cShe cneeds cto csave c$5,000 cfor cthe ctrip, cand cshe cwants cto ctravel cin ctwo
cyears.
Which capproach cto csavings cshould cNora cconsider cto cachieve cher cfinancial cgoal? c
Compound c
Short-term
cLong-term c
Intermediate-term c- cIntermediate-term csavings cgoals ccan ctypically cbe creached cin ctwo cto cfive cyears, cfor cexample cputting
cmoney caway cfor can coverseas cvacation.
William ccreates ca cbudget cthat cestimates c$1,750 cfor chis csummer cvacation. cHe cfurther cbreaks cdown cthe ccosts cthis cway:
Hotel c- c$900
Public cTransportation c- c$50
Restaurants c- c$500
Museum cPass c- c$100
Other cEntertainment c- c$200
