Wise Practice Test 100% Correct!!

WISE PRACTICE TEST 100% CORRECT!! budget variance. - CORRECT ANS - the difference between the budgeted amount and the actual amount that you spend debt ratio - CORRECT ANS - shows the relationship between debt and net worth. debt ratio - CORRECT ANS - The lower the ratio the better off financially the person is. debt ratio - CORRECT ANS - calculated by dividing liabilities by net worth excise tax - CORRECT ANS - government imposes a tax on specific goods and services such as alcohol, cigarettes, gasoline, and airline capital gains - CORRECT ANS - are profits made from the sale of capital assets such as stocks and bonds Capital gains - CORRECT ANS - tax deferred until the asset is sold, Capital Gains Tax - CORRECT ANS - If held over one year are considered long-term capital gains and are taxed at a lower tax rate or in some cases are not taxed at all. Variable expenses - CORRECT ANS - change from one period to another, examples Electricity and food expenditures Get advice from your friends - CORRECT ANS - will help you the least in managing your money? Financial planning - CORRECT ANS - the process of developing and implementing a coordinated series of actions to achieve financial success. Financial planning - CORRECT ANS - need to be reviewed and adjusted to accommodate changing needs and goals. emergency fund - CORRECT ANS - Should be an important consideration when saving money Liquidity - CORRECT ANS - being in cash or easily convertible to cash, How easily an asset can be converted into cash Social Security - CORRECT A