This Exam is long !!!
Manage your time !!!
Answer on your official exam copy !!!
Course question (20 points) :
What information does a cash flow statement present?
The cash flow statement summarizes actual inflows and outflows of cash during a given time period. The cash flow statement is a report of your spending patterns and can be used to create budget amounts for various expense categories. (pp. 83-86)
Exercise (20 points)
Based on the following data, would Ann and Carl Wilton receive a refund or owe additional taxes?
Adjusted gross income, $46,186
Itemized deductions, $11,420
Child care tax credit, $80
Federal income tax withheld, $4,784
Amount for personal exemptions, $6,800
Average tax rate on taxable income, 15%
Taxable income would be $27,966 ($46,186 - $11,420 - $6,800) times the average tax rate of 15 percent equals $4,195 less a tax credit of $80 gives a tax liability of $4,115. When compared to federal tax withheld ($4,784), the result is a refund of $669.
MCQ (30 questions - 120 points)
Only 1 answer is right.
+ 4 points for the right answer
- 1 point for a wrong answer
0 point for no answer
Personal Finance Basics and the Time Value of Money
1. Who is most likely to benefit from inflation?
A. retired people
D. low-income consumers
2. A major activity in the planning component of financial planning is:
A. selecting insurance coverage.
B. evaluating investment alternatives.
C. gaining occupational training and experience.
D. allocating current resources for spending.
E. establishing a line of credit.
3. If a person deposited $50 a month for 6 years earning 8 percent, this would involve what type of computation?
A. simple interest
B. future value of a single amount
C. future value of a series of deposits
D. present value of a single amount
E. present value of a series of deposits
4. If inflation is increasing at 3 percent per year, and...