Which of the following is true of budgets?

a$.$ Budgets are meant for poor people only.

b$.$ Budgets need expensive software to be effective.

c$.$ Budgets are forward looking.

d$.$ Budgets are permanent.

e$.$ Budgets are unnecessary.

The three parts of an individual's balance sheet are his or her:

a$.$ income, liabilities, and net worth.

b$.$ assets, expenditures, and net worth.

c$.$ assets, liabilities, and expenses.

d$.$ assets, liabilities, and net worth.

e$.$ income, liabilities, and assets.

Which of the following is an example of real property?

a$.$ Machinery

b$.$ A computer

c$.$ An automobile

d$.$ A garage

e$.$ Office furniture

Loans should be recorded as a liability on the balance sheet at their:

a$.$ original outstanding balance.

b$.$ year$-$end outstanding balance.

c$.$ average outstanding balance.

d$.$ current outstanding balance.

e$.$ beginning outstanding balance.

Which of the following is true of an individual's net worth?

a$.$ It is the sum of an individual's current assets and his or her current liabilities.

b$.$ It is the sum of an individual's take$-$home pay and his or her payroll taxes.

c$.$ It is the difference between an individual's current assets and his or her current liabilities.

d$.$ It is the difference between an individual's monthly income and his or her expenses.

e$.$ It is the difference between an individual's total assets and his or her total liabilities.

Michael and Sandy purchased a home for $$100,000$ five years ago. If its value appreciated at $6\%$ annually, what is it worth today? $($Round the answer to the nearest unit place.$)$

a$.$ $$100,000$

b$.$ $$106,000$

c$.$ $$130,000$

d$.$ $$133,823$

e$.$ $$135,603$

When your liabilities exceed your assets, you are

a$.$ solvent

b$.$ financially sound