Week 1 Flashcards
A Smart TV with a list price of $498 is marked down 30%. If John gets an employee discount of 20% off the sale price, how much will John pay?
$278.88
Which of the following is true about budgets?
A. They are permanent
B. They are unnecessary
C. They are looking forward.
D. They are only for middle class people.
C. They are looking forward.
A claim that allows creditors to liquidate collateral on a loan is referred to as a:
A. Note
B. Lien
C. Loan Rollover
B. Lien
Which of the following is true of an individual’s net worth?
A. It is the difference between an individual’s total assets and their total liabilities
B. It is the sum of an individual’s current assets and their current liabilities.
C. It is the difference between an individual’s monthly income and their expenses.
A. It is the difference between an individual’s total assets and his or her total liabilities.
When liabilities exceed your assets, you are:
A. Financially Stable
B. Insolvent
C. Financially Stable
D. Solvent
B. Insolvent
Loans should be recorded as a liability on the balance sheet at their:
A. year end outstanding balance
B. original outstanding balance
C. current outstanding balance
C. current outstanding balance
An individual’s balance sheet consists of three parts:
A. Income, Assets, and Liabilities
B. Assets, Liabilities, and Net Worth
C. Assets, Expenditures, and Net Worth
D. Net worth, Capital, and Assets
B. Assets, Liabilities, and Net Worth
Which is true of the health reimbursement account (HRA)?
A. unidirectional money can be rolled over annually
B. the premium amount for the insurance policy of dependents is reimbursed
C. the health reimbursement account balance is replenished by the insurance company
A. unused money can be rolled over annually
The principle of indemnity will prevent:
A. an insured from collecting more than what they have lost
B. a significant amount of loss control activity
C. the act of one person being imputed to another
A. and insured from collecting more than what they have lost
How many days is allotted for a policy holder to retain full death protection even when the premium has not been paid:
A. 50 days
B. 31 days
C. 12 months
D. 3 months
B. 31 days
