Test Bank For Personal Financial Planning 13th Edition by Lawrence J. Gitman
Test Bank for Personal Financial Planning 13th Edition by Lawrence J. Gitman is a comprehensive resource for students pursuing a course in personal finance. The test bank includes a collection of questions and answers that can be used to prepare for exams and quizzes.
The 13th edition of Personal Financial Planning covers the latest topics related to personal finance, including budgeting, investing, retirement planning, insurance, and taxes. The test bank is organized by chapter and includes multiple-choice questions, true/false questions, and short-answer questions.
The questions in the test bank cover all the key concepts and principles of personal finance, and provide students with an opportunity to practice applying their knowledge to real-life scenarios. In addition to providing the correct answers to the questions, the test bank also provides explanations and rationales for each answer, helping students to understand the underlying concepts and principles.
The test bank can be used by instructors to create exams and quizzes, or by students as a study resource to prepare for exams. The questions are designed to be challenging and thought-provoking, requiring students to think critically and apply their knowledge to solve problems.
Overall, the Test Bank for Personal Financial Planning 13th Edition by Lawrence J. Gitman is an excellent resource for both instructors and students seeking to gain a deeper understanding of personal finance.
Chapter 2—Using Financial Statements and Budgets
TRUE/FALSE
1.A balance sheet shows your financial condition as of the time the statement is prepared.
ANS: T PTS: 1 DIF: Moderate OBJ: LO: 2-1
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY:Bloom’s: Knowledge
2.One could use statements from their various financial institutions to help complete a balance sheet.
ANS: T PTS: 1 DIF: Moderate OBJ: LO: 2-1
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY:Bloom’s: Knowledge
3.The income statement includes information on your latest paycheck.
ANS: F PTS: 1 DIF: Challenging OBJ: LO: 2-1
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY:Bloom’s: Analysis
4.The income and expenditures statement provides a measure of financial performance over a period of time.
ANS: T PTS: 1 DIF: Moderate OBJ: LO: 2-1
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY:Bloom’s: Knowledge
5.Financial planning is necessary only if you earn a lot of money.
ANS: F PTS: 1 DIF: Easy OBJ: LO: 2-1
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY: Bloom’s: Comprehension
6.Assets listed on your balance sheet must have monetary value.
ANS: T PTS: 1 DIF: Moderate OBJ: LO: 2-1
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY: Bloom’s: Comprehension
7.A budget is a detailed statement of what income and expenses occurred over a past period.
ANS: F PTS: 1 DIF: Moderate OBJ: LO: 2-1
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY: Bloom’s: Comprehension
8.A budget is a detailed financial forecast.
ANS: T PTS: 1 DIF: Moderate OBJ: LO: 2-1
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY: Bloom’s: Comprehension
9.Financial assets are intangible assets acquired to achieve long-term personal financial goals.
ANS: T PTS: 1 DIF: Moderate OBJ: LO: 2-2
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY:Bloom’s: Knowledge
10.Assets purchased on credit should be included on the asset side of the balance sheet.
ANS: T PTS: 1 DIF: Moderate OBJ: LO: 2-2
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY: Bloom’s: Comprehension
11.Jewelry, furniture and computers are examples of personal property.
ANS: T PTS: 1 DIF: Easy OBJ: LO: 2-2
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY:Bloom’s: Knowledge
12.A house and land are examples of financial property.
ANS: T PTS: 1 DIF: Moderate OBJ: LO: 2-2
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY:Bloom’s: Knowledge
13.Most types of personal property depreciate, or decline in value, shortly after being put into use.
ANS: T PTS: 1 DIF: Easy OBJ: LO: 2-2
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY:Bloom’s: Knowledge
14.Investment assets include items such as boats or automobiles.
ANS: F PTS: 1 DIF: Moderate OBJ: LO: 2-2
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY: Bloom’s: Comprehension
15.All assets are recorded on the balance sheet at their original cost.
ANS: F PTS: 1 DIF: Challenging OBJ: LO: 2-2
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY: Bloom’s: Comprehension
16.The financial planning process is regulated by state governments when done by professionals.
ANS: F PTS: 1 DIF: Challenging OBJ: LO: 2-2
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY:Bloom’s: Knowledge
17.Money I loaned to a friend is a liability on my balance sheet.
ANS: F PTS: 1 DIF: Moderate OBJ: LO: 2-2
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY:Bloom’s: Application
18.A charge made on your credit card becomes a liability as soon as the charge is incurred.
ANS: T PTS: 1 DIF: Moderate OBJ: LO: 2-2
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY:Bloom’s: Application
19.You are more likely to achieve your goals if a definite goal date is set.
ANS: T PTS: 1 DIF: Easy OBJ: LO: 2-1
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY: Bloom’s: Comprehension
20.Your auto loan payments would be listed as an expense on the income statement.
ANS: T PTS: 1 DIF: Moderate OBJ: LO: 2-3
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY:Bloom’s: Application
21.Only the current month’s payment on your mortgage loans would be listed on the balance sheet as a liability.
ANS: F PTS: 1 DIF: Moderate OBJ: LO: 2-2
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY:Bloom’s: Application
22.Inability to reach short-term goals will significantly affect your ability to reach long-term goals.
ANS: T PTS: 1 DIF: Easy OBJ: LO: 2-1
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY:Bloom’s: Knowledge
23.Your net worth and your equity in owned assets are the same basic concept.
ANS: T PTS: 1 DIF: Easy OBJ: LO: 2-2
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY:Bloom’s: Knowledge
24.The balance sheet equation is assets plus liabilities equals net worth.
ANS: F PTS: 1 DIF: Easy OBJ: LO: 2-2
NAT: BUSPROG: Analytic skills STA: DISC: Financial Analysis and Cash Flows
KEY:Bloom’s: Knowledge
25.A budget is an orderly estimate of income and expenditures.
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