Personal Finance (1st

CHAPTER 2 - SELF-TEST QUESTIONS erste Sws 1. What value does a spending journal bring? (LO 3-1) 1. It provides an opportunity to analyze where you may be wasting me 2. It provides you a base whereby you can create a budget. 3. It provides insight into your spending habits. 14 All of the above 2. What is the equation for a balance sheet? (LO 3-1) 1. Balance sheet - Net worth = Assets 2. Assets + Liabilities = Net worth 3. Assets - Liabilities = Net worth 4. Income - Expenses = Net worth 3. Which one of the following is not an asset? (LO 3-1) 1. A bicycle 2. A jar full of saved coins from loose change 3. A car loan 4. An IOU from your roommate 4. Which one of the following is not a liability? (LO 3-1) 1. A credit card balance 2. A car loan 3. A student loan 4. An ATM Card 5. When is your cash flow "in the red"? (LO 3-1) 1. Income > Spending 2. Spending > Income 3. Net cash flow > Income - Spending 4. Net cash flow > Spending - Income