Questions from Personal Finance

Q: Maria Sepulveda is 57 years old and has been widowed for 13

Maria Sepulveda is 57 years old and has been widowed for 13 years. Never remarried, she has worked full-time since her husband died 13 years ago—in addition to raising her two children, the youngest o...

Q: Describe some of the areas or items you would consider when evaluating

Describe some of the areas or items you would consider when evaluating your balance sheet and income and expense statement. Cite several ratios that could help in this effort.

Q: Describe the cash budget and its three parts. How does a

Describe the cash budget and its three parts. How does a budget deficit differ from a budget surplus?

Q: The Gonzales family has prepared their annual cash budget for 2016.

The Gonzales family has prepared their annual cash budget for 2016. They have divided it into 12 monthly budgets. Although only 1 monthly budget balances, they have managed to balance the overall budg...

Q: Why is it important to analyze actual budget surpluses or deficits at

Why is it important to analyze actual budget surpluses or deficits at the end of each month?

Q: Why is it important to use time value of money concepts in

Why is it important to use time value of money concepts in setting personal financial goals?

Q: What is compounding? Explain the rule of 72.

What is compounding? Explain the rule of 72.

Q: When might you use future value? Present value? Give specific

When might you use future value? Present value? Give specific examples.

Q: Explain two ways in which net worth could increase (or decrease

Explain two ways in which net worth could increase (or decrease) from one period to the next.

Q: Explain what cash basis means in this statement: “An income

Explain what cash basis means in this statement: “An income and expense statement should be prepared on a cash basis.” How and where are credit purchases shown when statements are prepared on a cash b...