Fi560

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Sam and his wife Ann purchased a home in Lubbock, Texas in 1980 for $100,000. Their original home mortgage was for $90,000. The house has a current market value of $175,000 and a replacement value of $200,000. They still owe $55,000 on their home mortgage. Sam and Sally are now constructing their balance sheet. How should their home be reflected on their current personal balance sheet?

a.) $200,000 asset and $55,000 liability
b.) $200,000 asset and $90,000 liability
c.) $175,000 asset and $55,000 liability
d.) $175,000 asset and $90,000 liability
e.) $100,000 asset and $55,000 liability| c.) $175,000 asset and $55,000 liability| ______ would not be listed as a liability on your balance sheet.

a.) Taxes owed
b.) Loan balances
c.) Bank credit card charges
d.) Savings accounts
e.) Rent due| d.) Savings accounts|
Sonny and Cher have a net worth of $35,000 and total assets of $200,000. If their revolving credit and unpaid bills total $2,200, What are their long-term liabilities?

a.) $115,000
b.) $140,000
c.) $142,200
d.) $162,800
e.) $165,000| d.) 162,800|
Ben and Jack both earned $60,000 this year. Ben (age 30) is married with two children, and Jack (age 68) is single with no dependents. Which of the following is true regarding the amount of Social Security taxes they will pay?

a.) They will pay the same amount of Social Security taxes
b.) Ben will pay less Social Security taxes because he is married c.) Ben will pay less Social Security taxes because he has children d.) Jack will pay less Social Security taxes because he is single e.) Jack will pay less Social Security taxes because he is over age 65| a.) They will pay the same amount of Social Security taxes| You would typically NOT include _____ in your gross income.

a.) wages and salaries
b.) life insurance death benefit payments
c.) interest and dividends
c.) pension income
e.) gambling winnings| b.) Life insurance death benefit payments| ______ would be considered taxable income.

a.) An inheritance from your grandmother's estate
b.) A gift from you aunt
c.) Child support payments
d.) Alimony received
e.) A tuition scholarship| d.) Alimony received|
Diana sold mutual fund shares she had owned 4 years so that she could use the proceeds to trabel across Europe with her son. Diana is in the 35% marginal tax bracket and her capital gains from this sale were $30,000 . How much tax would Diana owe on the gains?

a.) $10,500
b.) $8,400
c.) $6,000
d.) $4,500
e.) $1,500| d.) $4,500|
The _____ is really a second mortgage on your home.

a.) affinity card
b.) unsecured personal credit line
c.) home equity line of credit
d.) preferred Visa card
e.) platinum American Express card| c.) Home equity line of credit| The quality of your credit rating is maintained by:

a.) only using cash to make purchases
b.) making credit payments early
c.) seldom questioning billing errors
d.) using multiple credit cards
e.) meeting credit obligations as contracts require| e.) Meeting credit obligations as contracts require| A credit card can provide an interest-free loan if you:

a.) pay for purchases withing six months
b.) pay the minimum payment
c.) pay the entire balance on or before the due date
d.) path the previous balance by the due date
e.) receive a cash advance| c.) Pay the entire balance on or before the due date| Anna uses her credit card regularly, but she pays the total balance monthly. Anna should look for a credit account with:

a.) no annual fee
b.) low interest rates
c.) long grace period
d.) a and b
e.) a and c| e.) A and C|
When paying for something with a check, don't give your _____ number.

a.) Social Security
b.) Credit card
c.) Drivers license
d.) a and b
e.) a, b, and c| d. A and B|
Which of the following household appliances could help you protect yourself against identity theft?

a.) VCR
b.) Cell phone
c.) Shredder
d.) Home computer
e.) Telephone answering...
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