FPQP Exam: Cash Management and the Use of Debt| Questions with Correct Answers 100%
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True or false: The type of statements used and the format of these statements may vary from
practitioner to practitioner True
What statements are suppose to accomplish To show an individuals net worth and whether
during a period they have a positive or negative cash flow
Statement of financial position Balance sheet
What the purpose of a balance sheet is static snapshot of the individual's financial situation
as of a given date .
Why financial statements can be compared Successive personal financial statements may be
compared to identify trends in the individual's financial situation
3 categories of assets Cash/cash equivalents
Invested assets
Use assets
Use asset Individual has built up a rare coin collection in his home, and has not intention of
selling it, the coin collection should be classified as a use asset
Invested asset If the individual purchased the coin collection with the intent to keep it until
the value increased and then sell it at a profit, it would be classified as an invested asset
What is in cash/cash equivalents category certificates of deposits, checking or savings
accounts, money market funds, money market instruments, life insurance cash values
Verified By Experts| Latest Update Guaranteed Success
True or false: The type of statements used and the format of these statements may vary from
practitioner to practitioner True
What statements are suppose to accomplish To show an individuals net worth and whether
during a period they have a positive or negative cash flow
Statement of financial position Balance sheet
What the purpose of a balance sheet is static snapshot of the individual's financial situation
as of a given date .
Why financial statements can be compared Successive personal financial statements may be
compared to identify trends in the individual's financial situation
3 categories of assets Cash/cash equivalents
Invested assets
Use assets
Use asset Individual has built up a rare coin collection in his home, and has not intention of
selling it, the coin collection should be classified as a use asset
Invested asset If the individual purchased the coin collection with the intent to keep it until
the value increased and then sell it at a profit, it would be classified as an invested asset
What is in cash/cash equivalents category certificates of deposits, checking or savings
accounts, money market funds, money market instruments, life insurance cash values
