Busn380 Homework Help

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True / False Questions 1. Increased demand for a product or service will usually result in lower prices for the item. FALSE 2. Inflation reduces the buying power of money. TRUE 3. When prices are increasing at a rate of 6 percent, the cost of products would double in about 12 years. TRUE 4. A decrease in the demand for a product or service may result in a decrease in wages for people producing that item. TRUE 5. A financial plan is another name for a budget. FALSE 6. Short-term goals are usually achieved within the next year or so. TRUE 7. Opportunity costs refer to time, money, and other resources that are given up when a decision is made. TRUE 8. Risks associated with most…show more content…
A. $40,300 B. $41,200 C. $42,000 D. $43,700 E. $46,000 24. Barb Hotchkins is in the 28 percent tax bracket. A tax-exempt employee benefit with a value of $500 would have a tax-equivalent value of: A. $694. B. $528. C. $500. D. $360. E. $140. 25. Tax-deferred employee benefits are A. not subject to federal income tax. B. not subject to state income tax. C. taxed at some future time. D. are taxed at a special rate. True / False Questions 26. Opportunity costs are only associated with money management decisions involving long-term financial security. FALSE 27. A budget is a specific plan of how a person or family will spend their money. TRUE 28. A personal balance sheet reports your income and expenses. FALSE 29. A person 's net worth is the difference between the value of the items owned and the amounts owed to others. TRUE 30. Furniture, jewelry, and an automobile are examples of liquid assets. FALSE 31. Current liabilities are amounts that must be paid within a short period of time, usually less than a year. TRUE 32. A personal cash flow statement presents income and outflows of cash for a given time period, such as a month. TRUE 33. If expenses for a month are greater than income, an increase in net worth will result. FALSE Multiple Choice Questions 34. A personal balance sheet presents: A. amounts budgeted for spending. B. income and expenses
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