LPF - Course All Possible Questions and Answers with complete solution

LPF - Course All Possible Questions and Answers with complete solution Which of the following is not one of the five basic steps in personal financial planning? Let an accountant review your plan (T or F) A well educated and trained employee is virtually guaranteed job security in today's corporations. Therefore he or she doesn't need to worry about keeping his or her skills updated and current False (T or F) Proper financial planning can help you use your current income to achieve your long term financial goals True (T or F) When comparing two different investment opportunities the investor should always choose the investment that minimizes the total amount of taxes paid False Suppose you are a 20-year-old college student. What stage of the financial life cycle are you currently in? Stage 1: wealth accumulation Being financially secure involves balancing what you earn with What you spend Which of the following statement applies to obtaining an undergraduate college degree? It may be the single best investment you will ever make Suppose that you just completed your first year of college with $11,000 in loans and plan to borrow the maximum each year from now until graduation. You have never accounted for the way you spend your money, do not have a budget, and want to insure that you will be able to repay your loans after college. What is the most important thing you can do right now? Immediately begin to develop a personal financial plan When you are involved in _____ planning, you are planning for your eventual death and the distribution of your wealth to your heirs Estate (T or F) A financial plan is only concerned with your future earnings and expenses. An examination of your current financial situation is not so important False Fair market value refers to What an asset could be sold for today Liabilities are best described as Financial debts and obligations that you owe An expenditure over which you have no control and are obligated to make is a Fixed expenditure Assets that you purchase for the purpose of accumulating wealth to satisfy your financial goals are called