LPF - Course Quizzes | with complete solution

LPF - Course Quizzes | with complete solution Which of the following is not one of the five basic steps in personal financial planning? - Let an accountant review your plan (T or F) A well educated and trained employee is virtually guaranteed job security in today's corporations. Therefore he or she doesn't need to worry about keeping his or her skills updated and current - False (T or F) Proper financial planning can help you use your current income to achieve your long term financial goals - True (T or F) When comparing two different investment opportunities the investor should always choose the investment that minimizes the total amount of taxes paid - False Suppose you are a 20-year-old college student. What stage of the financial life cycle are you currently in? - Stage 1: wealth accumulation Being financially secure involves balancing what you earn with - What you spend Which of the following statement applies to obtaining an undergraduate college degree? - It may be the single best investment you will ever make Suppose that you just completed your first year of college with $11,000 in loans and plan to borrow the maximum each year from now until graduation. You have never accounted for the way you spend your money, do not have a budget, and want to insure that you will be able to repay your loans after college. What is the most important thing you can do right now? - Immediately begin to develop a personal financial plan When you are involved in _____ planning, you are planning for your eventual death and the distribution of your wealth to your heirs - Estate (T or F) A financial plan is only concerned with your future earnings and expenses. An examination of your current financial situation is not so important - False Fair market value refers to - What an asset could be sold for today Liabilities are best described as - Financial debts and obligations that you owe An expenditure over which you have no control and are obligated to make is a - Fixed expenditure Assets that you purchase for the purpose of accumulating wealth to satisfy your financial goals are called - Investment assets Which financial planning document should you use to measure your current financial position? - Balance sheet One of the following items would NOT go on a balance sheet. Which one is it? - Mortgage payment paid Your net worth, or your general level of financial worth, is found by - Subtracting your liabilities from your assets A physical asset, such as furniture or a car, is called a(n) - Tangible asset Which type of expenditure would probably be the hardest for an individual to track? - Cash You know you are insolvent when - Both B and C: Your assets are less than your liabilities; your net worth is negative By allowing the interest that you earn on an investment to stay in the investment and to