Personal Finance - Section 1 Assesment
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Western Governors University *
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363
Subject
Finance
Date
Jan 9, 2024
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5
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12/31/23, 4:29 AM
Personal Finance | WGU-CGP-OEX
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2/13
Total Assets
$45,000
Total Liabilities
$22,000
Net Worth
$23,000
Section 1 Assessment
29.696969696969695/35.0 points (ungraded)
How prepared are you for the objective assessment?
This test is designed to help you see if you are ready to demonstrate mastery of the following competency:
The learner applies basic financial principles to personal budgeting, cash management, and the use of personal credit.
Question 1
Sophia is creating a personal budget. She starts by listing her monthly income and expenses.
Which financial statement did Sophia create?
Correct:
The cash-flow statement is a summary of income and expenses for a given period of time.
Question 2
Malik is reviewing a list of assets and liabilities. He uses the information shown in the table to evaluate his net worth.
Which financial statement is Malik reviewing?
Correct:
A balance sheet provides a quick view of one's assets, liabilities, and net worth.
Question 3
Diego is reviewing his personal budget to see where he can control his spending so he can save more money each month.
Which type of expenses would Diego be reviewing?
Cash-flow statement
Net worth
Financial ratio
Balance sheet
Income and expense statement
Cash-flow statement
Cash equivalent statement
Balance sheet
Personal Finance
12/31/23, 4:29 AM
Personal Finance | WGU-CGP-OEX
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3/13
Category
(Income) / Expense
Income
($5,000)
Rent
$1,200
Electricity
$150
Automobile loan
$250
Groceries
$150
Internet
$60
Mobile Phone
$80
Correct:
Variable expenses are those over which an individual has control. This is where one can look to save money each month.
Question 4
Mei receives $5,000 per month in after-tax pay. She is reviewing the following information for the current month.
Which type of financial statement is Mei reviewing?
Correct:
The cash-flow statement lists out all income and expenses for a given period.
Question 5
Fatima noticed that she consistently has $300 left over each month, so she wants to start saving money. She researches the
different types of accounts she could open. Fatima decides to open a money market account.
Why would Fatima choose to open a money market account over a traditional savings account?
Fixed
Variable
Recurring
Surplus
Net worth statement
Cash equivalent statement
Cash-flow statement
Balance sheet
A money market pays a higher interest rate.
A traditional savings account requires a high minimum balance.
A money market is covered by the Federal Deposit Insurance Corporation (FDIC).
Traditional savings account deposits are invested into financial markets.
Personal Finance
12/31/23, 4:29 AM
Personal Finance | WGU-CGP-OEX
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4/13
Asset
Value
Cash Value of Life Insurance
$50,000
Automobile
$15,000
Savings Account
$25,000
Wedding ring
$1500
Correct:
A money market account pays a higher interest rate than traditional savings accounts.
Question 6
Kamal is reviewing his list of assets, shown here.
Which of Kamal's assets is an investment asset?
Correct:
Life insurance is an investment asset.
Question 7
Anika looks through her balance sheet. She is categorizing her liabilities.
Which liability would be considered a short-term liability?
Correct:
Credit card account balances are considered a short-term liability, as they can be paid off within one year.
Question 8
Eva is evaluating her personal budget. She is certain there are things she could do differently to improve her financial habits.
What is one suggestion that financial experts make to turn bad habits into good ones?
Cash Value of Life insurance
Savings account
Wedding ring
Automobile
Student loan
Automobile loan
Credit card balance
Mortgage
Search for checking accounts with low monthly fees
Keep checking account balance high
Personal Finance
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12/31/23, 4:29 AM
Personal Finance | WGU-CGP-OEX
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5/13
Correct:
Financial experts suggest paying all bills on time to avoid paying late fees or interest.
Question 9
Maria knows that she has to keep certain documents secure, especially ones that relate to her personal budget and net worth.
Which document is an example of a financial document that Maria should keep in a fireproof home safe?
Correct:
A list of items that are stored in a safe-deposit box is an example of a financial document that Maria would keep at home.
Question 10
Jack is analyzing his personal budget to see how healthy it is. He knows there are several ratios that he can calculate to
determine health.
Which financial ratio will Jack need to calculate to determine whether he owns enough things with monetary value to meet his
debt obligations?
Correct:
This is calculated by dividing total assets by total debt. A high ratio is desirable.
Question 11
Leilani wants to save money, and she prefers to do so in a traditional savings account.
Which monetary asset provider should Leilani use?
Keep checking account balance high
Pay all monthly bills on time
Open one savings account only
Copies of income tax filings for the past three years
List of credit card accounts and telephone numbers
List of safe-deposit box contents
Financial institutions and account numbers
Debt payments-to-disposable-income ratio
Asset-to-debt ratio
Debt-to-income ratio
Liquidity ratio
Brokerage firm
Depository institution
Insurance company
Mutual funds
Personal Finance
12/31/23, 4:29 AM
Personal Finance | WGU-CGP-OEX
https://apps.cgp-oex.wgu.edu/wgulearning/course/course-v1:WGUx+OEX0177+v01/block-v1:WGUx+OEX0177+v01+type@sequential+block@408cc4d7e3844921ace95e5d0e33ff02/block-v1:WGUx+OEX0177+v0…
6/13
Correct:
Depository institutions, or banks, offer many financial services including checking and savings accounts.
Question 12
Maya wants to manage her monetary assets. She knows she needs to protect herself from a financial crisis at her bank. She
opens two individual accounts at two separate financial institutions in order to keep both accounts less than $250,000.
How will this help Maya protect her monetary assets?
Correct:
The FDIC insurance is a reason to open more than one account, so that less than $250,000, the maximum insured amount, can
be kept in each account.
Question 13
Ren learned about the Federal Deposit Insurance Corporation (FDIC), so he wants to be sure his new savings account is
covered.
Which financial institution should Ren use to open an account to be sure it is FDIC insured?
Correct:
Accounts held at depository institutions are federally insured to $250,000 per person across all accounts held at that bank.
Question 14
Oliver wants to grow his monetary assets. He decides to check into purchasing bonds and other investments.
Which monetary asset provider should Oliver meet with?
The Federal Deposit Insurance Corporation insures each account against loss up to $250,000 per account.
Having accounts at two separate banks will help Maya save money on banking fees.
Having an account at two separate banks lessens the likelihood that both banks would go out of business at the same
time.
Choosing two separate financial institutions ensures the highest possible interest rates for Maya.
Depository institution
Brokerage firm
Mutual funds
Bond investment
Insurance company
Thrift institution
Stock brokerage firm
Mutual fund company
Personal Finance
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December 31, 2014 and 2013
Dec. 31, 2014
Dec. 31, 2013
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bloe
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1,010,000
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Calculate the net price factor (as a %) and net price (in $) by using the complement method. Round your answer to the nearest cent.
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Chapter 17 Financial Statement Analysis
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ов. 1
V 1. Net sales,
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1
SPREADSHEET
Macklin Inc.
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2itilid For the Years Ended December 31, 2014 and 2013
GENERALLEDGER
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13
700
Equipment
18
13,700
Accumulated Depreciation
19
1,100
Accounts Payable
21
1,900
Notes Payable
22
4,300
Bob Steely, Capital
31
12,940
Bob Steely, Drawing
32
790
Fees Earned
41
9,250
31
Wages Expense
51
2,500
92
Rent Expense
52
1,960
Utilities Expense
53
775
1.94
Depreciation Lxpense
54
250
14.96
Miscellaneous Expense
185
59
04.99
Totals
29,490
29,490
Determine the total liabilities for the period.
04.101
Oa. S1900
C.04.104
ress: 28/40 items
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FIN-320-X5089 Principles of Finance 22EW5
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Homework: 3-1 MyFinanceLab Assignment
Question 9, P5-18 (similar to)
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(Related to Checkpoint 5.5) (Solving for n) Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new $330,000 Rolls-Royce Phantom. Jack currently has $67,960 that he may invest.
He has found a mutual fund with an expected annual return of 4.5 percent in which he will place the money. How long will it take Jack to win Jill's hand in marriage? Ignore taxes and inflation.
The number of years it will take for Jack to win Jill's hand in marriage is years. (Round to one decimal place.)
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he sale was reported to him on Form 1099-B.
avier Brown (32) is filing as a single taxpayer. During the year, he was unhappy with the performance of an investment he had made in ALX Corporation in 2019. Xavier sold his sha
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Xavier received the following Form…
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Consider the budgeted income statement for Carlson Company for June 20X4 in Exhibit 7-13.
The cash balance, May 31, 20X4, is $15,000.
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Accounts payable on May 31, 20X4, are $145,000.
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