Question The balance sheet shows an individual's financial condition as of the time the statement is prepared, and its outcome is stated as net worth which equals your assets (things you own) minus your liabilities (amounts you owe). A) True B False Question 2 1 Point A cash budget uses short-term financial goals to help you reach long-term financial goals. True False Question 3 1 Point An income and expense statement provides a measure of financial performance over a period of time. The calculation of your total income minus expenses is also known as your cash deficit or cash surplus True B) False Question 4 1 Point A budget is a financial report that forecasts an individuals current income as a percentage of his or her past earnings True B False Questions Point If your statement of income and expense prepared on a cash basis shows a deficit, you have: A increased your debts. B liquidated your investments. increased your savings taken a cash loan on your insurance. Question 6 1 Point if Jenny obtains a loan to purchase a car in June, the loan amount will be included as income for the month of June. Loan proceeds are considered income A True Net Worth, Insolvent, Assets, Liabilities B False Cash Basis, Income, Expenses, Spending, Deficits Question 7 Cash Deficit, Cash Surplus, income, Expenses Financial Statements, Budgets and Ratios - match the statement Solvency, Liquidity, Savings. Debt Prompts Income and Expense Statement Financial Plans, Financial Statements, Budgets Balance Sheet Choose a match Budget Choose a match Interlocking Network Choose a match Ratios for Financial Analysis Choose a match Question 8 The preparation of an income and expense statement is the first step in the personal financial planning process A) True False Question 9 An individual's auto loan payments are listed as an expense on the income and expense statement A True B False Question 10 Which of the following statements regarding budgets is true? A Budgets are detailed forward-looking financial reports based on expected income and expenses. B Budgets describe a person's financial position at a given point in time. Budgets measure a person's financial performance at a given point in time. O Budgets describe a person's financial goals over a specific period of time. Budgets are historical documents that tell an individual how he or she has performed in the past