Marshall University MIS 310 Fall 2013 Chapter 4-6 Quiz -Personal Finance Basics and the Time Value of Money-TRUE FALSE

True / False Questions33.Taxes are only considered as financial planning activities in April.34.A state may impose a personal property tax.35. Real-estate property taxes are a major source of revenue for local governments.36.A general sales tax is also referred to as an excise tax.37.A tax on the value of automobiles, boats, or furniture is referred to as a personal property tax.38. Taxable income is the total earnings of a person.39.Exemptions are deductions for yourself, your spouse and qualified dependents that you can deduct from adjusted gross income. 40.Opportunity costs are only associated with money management decisions involving long-term financial security.41.A budget is a specific plan of how a person or family will spend their money.42.A personal balance sheet reports your income and expenses.43.A person’s net worth is the difference between the value of the items owned and the amounts owed to others.44.Furniture, jewelry, and an automobile are examples of liquid assets.45.Current liabilities are amounts that must be paid within a short period of time, usually less than a year.46.A personal cash flow statement presents income and outflows of cash for a given time period, such as a month.47.If expenses for a month are greater than income, an increase in net worth will result.48. Increased demand for a product or service will usually result in lower prices for the item.49. Inflation reduces the buying power of money.50. When prices are increasing at a rate of 6 percent, the cost of products would double in about 12 years.51. A decrease in the demand for a product or service may result in a decrease in wages for people producing that item.52. A financial plan is another name for a budget.53. Short-term goals are usually achieved within the next year or so.54. Opportunity costs refer to time, money, and other resources that are given up when a decision is made.55. Risks associated with most financial decisions are fairly easy to measure.56. The financial planning process is complete once you implement your financial plan.