BUS 2204 – PERSONAL FINANCE 2 FINAL EXAM
2026 COMPLETE QUESTIONS ANSWERS
PREMIUM STUDY GUIDE
◉ If an asset is worth more when you re-sell it than when you
bought it, then you have __________.
a. a capital loss.
b. a capital gain.
c. a store of wealth.
d. a reduction in expenses.
e. excess capital.
Answer: b. a capital gain.
◉ Seeing the effect of each financial transaction or event on your
current situation is the purpose of __________.
a. balancing your books.
b. identifying your cash flows.
c. paying your bills.
d. recording your incomes.
e. having a checking account.
,Answer: a. balancing your books.
◉ Serena wants to see how her money from all sources came in and
went out for all uses during each month of the past year. Which kind
of financial statement does she need?
a. Balance sheet
b. Income statement
c. Net worth statement
d. Cash flow statement
e. Budget
Answer: d. Cash flow statement
◉ In January you made your final payment on your car loan and in
July you got a small home equity loan to replace windows and add a
deck. How would you classify these activities in your cash flow
statement?
a. Operating
b. Financing
c. Investing
d. Buying and selling
e. Recurring
,Answer: b. Financing
◉ The value of assets is equal to the value of liabilities plus the value
of __________.
a. equity.
b. debt.
c. cash.
d. a. and b.
e. a., b., and c
Answer: a. equity.
◉ On a cash flow statement, each cash flow is shown as a percentage
of total __________.
a. net worth.
b. positive cash flow.
c. negative cash flow.
d. income after expenses.
e. income after taxes.
Answer: b. positive cash flow.
, ◉ A summary of income and expenses over a period of time is called
__________.
a. a balance sheet.
b. an income statement.
c. net worth.
d. a cash flow statement.
e. a budget.
Answer: b. an income statement.
◉ The formula PV x (1+r)t = FV expresses the relationship between
__________.
a. present and future value.
b. risk and the value of money.
c. discount rate and risk.
d. liquidity and time.
e. utility and value.
Answer: a. present and future value.
◉ A period of declining productivity lasting less than half a year is
called __________.
2026 COMPLETE QUESTIONS ANSWERS
PREMIUM STUDY GUIDE
◉ If an asset is worth more when you re-sell it than when you
bought it, then you have __________.
a. a capital loss.
b. a capital gain.
c. a store of wealth.
d. a reduction in expenses.
e. excess capital.
Answer: b. a capital gain.
◉ Seeing the effect of each financial transaction or event on your
current situation is the purpose of __________.
a. balancing your books.
b. identifying your cash flows.
c. paying your bills.
d. recording your incomes.
e. having a checking account.
,Answer: a. balancing your books.
◉ Serena wants to see how her money from all sources came in and
went out for all uses during each month of the past year. Which kind
of financial statement does she need?
a. Balance sheet
b. Income statement
c. Net worth statement
d. Cash flow statement
e. Budget
Answer: d. Cash flow statement
◉ In January you made your final payment on your car loan and in
July you got a small home equity loan to replace windows and add a
deck. How would you classify these activities in your cash flow
statement?
a. Operating
b. Financing
c. Investing
d. Buying and selling
e. Recurring
,Answer: b. Financing
◉ The value of assets is equal to the value of liabilities plus the value
of __________.
a. equity.
b. debt.
c. cash.
d. a. and b.
e. a., b., and c
Answer: a. equity.
◉ On a cash flow statement, each cash flow is shown as a percentage
of total __________.
a. net worth.
b. positive cash flow.
c. negative cash flow.
d. income after expenses.
e. income after taxes.
Answer: b. positive cash flow.
, ◉ A summary of income and expenses over a period of time is called
__________.
a. a balance sheet.
b. an income statement.
c. net worth.
d. a cash flow statement.
e. a budget.
Answer: b. an income statement.
◉ The formula PV x (1+r)t = FV expresses the relationship between
__________.
a. present and future value.
b. risk and the value of money.
c. discount rate and risk.
d. liquidity and time.
e. utility and value.
Answer: a. present and future value.
◉ A period of declining productivity lasting less than half a year is
called __________.
