Unit 4- intro to financial planning
UPDATED ACTUAL Questions and
CORRECT Answers
financial plan - CORRECT ANSWER - A set of goals for spending, saving, and investing
the money you receive.
disposable income - CORRECT ANSWER - Income remaining for a person to spend or
save after all taxes have been paid
Bankruptcy - CORRECT ANSWER - A legal process to get out of debt when you can no
longer make all your required payments
wage - CORRECT ANSWER - An amount of money paid to an employee at a specific rate
per hour worked.
Gross Income - CORRECT ANSWER - the total amount of income from wages before
any payroll deductions
Net Income - CORRECT ANSWER - is an entity's income minus cost of goods sold,
expenses, depreciation and amortization, interest, and taxes for an accounting period.
estate planning - CORRECT ANSWER - Provides a clear plan for what should happen
upon the death of an individual
Inheritance - CORRECT ANSWER - is the practice of receiving private property, titles,
debts, entitlements, privileges, rights, and obligations upon the death of an individual
executor - CORRECT ANSWER - The person named in a will to handle the property of
someone who has died and carry out the terms of the will.
UPDATED ACTUAL Questions and
CORRECT Answers
financial plan - CORRECT ANSWER - A set of goals for spending, saving, and investing
the money you receive.
disposable income - CORRECT ANSWER - Income remaining for a person to spend or
save after all taxes have been paid
Bankruptcy - CORRECT ANSWER - A legal process to get out of debt when you can no
longer make all your required payments
wage - CORRECT ANSWER - An amount of money paid to an employee at a specific rate
per hour worked.
Gross Income - CORRECT ANSWER - the total amount of income from wages before
any payroll deductions
Net Income - CORRECT ANSWER - is an entity's income minus cost of goods sold,
expenses, depreciation and amortization, interest, and taxes for an accounting period.
estate planning - CORRECT ANSWER - Provides a clear plan for what should happen
upon the death of an individual
Inheritance - CORRECT ANSWER - is the practice of receiving private property, titles,
debts, entitlements, privileges, rights, and obligations upon the death of an individual
executor - CORRECT ANSWER - The person named in a will to handle the property of
someone who has died and carry out the terms of the will.
