MOS 2277 - Midterm - Chapter 1-9
Questions and Answers.
1) budgeting and tax planning 2) managing your financial resource 3) protecting your assets and
income 4) investing 5) planning your retirement and estate - Answer List the five
components of a financial plan? (BMPIP)
SMART (specific, measurable, attainable, relevant and time) - Answer What is the acronym
to remember when it comes to goal setting?
3 to 24 months - Answer One's emergency fund should range from _____ to _____ number
of months
False - Answer True or False
A line of credit can be used as a substitute for an emergency fund.
budget - Answer Your ______ is your monthly "road map" to help you accomplish all of your
goals!
pay off debt, develop an emergency fund and start saving for retirement - Answer List the
first three things to do when completing university, as discussed in lecture?
start when your young (then you'll merely have to save a smaller % of your income) - Answer
What's the major take-away about retirement savings?
Robert Kiyosaki - Answer "Rich people buy luxuries last, while the poor and middle class
tend to buy luxuries first" - ______ _____
15% - Answer Barry's suggest in class was to allocate ______% of your budget towards
transportation
sinking fund
Ex: House repairs, vacation - Answer Putting money aside every month for large
expenditures you know are coming is known as ____ _____.
List two examples?
Value of total assets - Value of total liabilities - Answer How do you calculate ones net
worth?
, budget - Answer You can forecast net cash flows by creating a ________, which is based on
forecasted income and expenses for an upcoming period
assets, liabilities and net worth - Answer The personal balance sheet measures the value of
your ______, your _______ and your ______ ______.
liquid assets, house hold assets and investments - Answer What are the three classifications
of assets in a personal balance sheet?
true (likely eligible for a refund, create RRSP room and non-capital loss) - Answer True or
False,
You should file a tax return every year?
federal/provincial - Answer Tax year end is December 31 for _______/________ income
taxes
individuals - Answer ______ income taxes and tax returns must be paid and filed by April
30th of the following year
Self-employed individual - Answer _____ ____ ____ have until June 15th to file income tax
returns, although taxes owing must be paid by April 30th
1) Calc. total income 2) subtract deductions 3) Calc. taxable income 4) Calc. net federal tax
payable 5) Calc. net provincial tax payable 6) Calc. total tax payable 7) determine total tax
already paid 8) refund or balance owing - Answer What are the eight steps to completing a
T1 general income tax and benefit return?
total income - Answer Step 1: ______ ____: all reportable from any source
Deductions - Answer ________ operate the exact same as expenses for expenses to a
corporation
Capital Gain/Loss - Answer .... = Proceeds from sale - costs to sell - adjusted cost base
3-years - Answer How long can capital losses be carried back for ?
adjusted cost base - Answer ______ _____ _____ is usually the cost of a property plus any
expenses to acquire it, such as commissions and legal fees.
Questions and Answers.
1) budgeting and tax planning 2) managing your financial resource 3) protecting your assets and
income 4) investing 5) planning your retirement and estate - Answer List the five
components of a financial plan? (BMPIP)
SMART (specific, measurable, attainable, relevant and time) - Answer What is the acronym
to remember when it comes to goal setting?
3 to 24 months - Answer One's emergency fund should range from _____ to _____ number
of months
False - Answer True or False
A line of credit can be used as a substitute for an emergency fund.
budget - Answer Your ______ is your monthly "road map" to help you accomplish all of your
goals!
pay off debt, develop an emergency fund and start saving for retirement - Answer List the
first three things to do when completing university, as discussed in lecture?
start when your young (then you'll merely have to save a smaller % of your income) - Answer
What's the major take-away about retirement savings?
Robert Kiyosaki - Answer "Rich people buy luxuries last, while the poor and middle class
tend to buy luxuries first" - ______ _____
15% - Answer Barry's suggest in class was to allocate ______% of your budget towards
transportation
sinking fund
Ex: House repairs, vacation - Answer Putting money aside every month for large
expenditures you know are coming is known as ____ _____.
List two examples?
Value of total assets - Value of total liabilities - Answer How do you calculate ones net
worth?
, budget - Answer You can forecast net cash flows by creating a ________, which is based on
forecasted income and expenses for an upcoming period
assets, liabilities and net worth - Answer The personal balance sheet measures the value of
your ______, your _______ and your ______ ______.
liquid assets, house hold assets and investments - Answer What are the three classifications
of assets in a personal balance sheet?
true (likely eligible for a refund, create RRSP room and non-capital loss) - Answer True or
False,
You should file a tax return every year?
federal/provincial - Answer Tax year end is December 31 for _______/________ income
taxes
individuals - Answer ______ income taxes and tax returns must be paid and filed by April
30th of the following year
Self-employed individual - Answer _____ ____ ____ have until June 15th to file income tax
returns, although taxes owing must be paid by April 30th
1) Calc. total income 2) subtract deductions 3) Calc. taxable income 4) Calc. net federal tax
payable 5) Calc. net provincial tax payable 6) Calc. total tax payable 7) determine total tax
already paid 8) refund or balance owing - Answer What are the eight steps to completing a
T1 general income tax and benefit return?
total income - Answer Step 1: ______ ____: all reportable from any source
Deductions - Answer ________ operate the exact same as expenses for expenses to a
corporation
Capital Gain/Loss - Answer .... = Proceeds from sale - costs to sell - adjusted cost base
3-years - Answer How long can capital losses be carried back for ?
adjusted cost base - Answer ______ _____ _____ is usually the cost of a property plus any
expenses to acquire it, such as commissions and legal fees.
