There is no need to retype the questions. Number your answers to correspond Create a word document that contains your numbered answers to the exam Number your answers to correspond with the exam. You will then submit the file through the Assignment Folder in our classroom. Please clearly mark your exam answers with your name. Opportunity cost refers to FORMTEXT a. your personal values. FORMTEXT b. trade-offs when a decision is made. FORMTEXT c. current economic conditions. FORMTEXT d. commonly accepted financial goals. The final step in the financial planning process is to FORMTEXT a. create a financial plan of action. FORMTEXT b. develop financial goals. FORMTEXT c. evaluate and revise your actions. FORMTEXT d. implement your financial plan. Financial strategies refer to FORMTEXT a. the process of predicting your future financial situation. FORMTEXT b. courses of action to achieve financial goals. FORMTEXT c. resources an individual has available for investing. FORMTEXT d. ideas or principles that are considered correct, desirable, or important. A(n) __________ is a specific plan for spending. FORMTEXT a. budget FORMTEXT b. balance sheet FORMTEXT c. income statement FORMTEXT d. bank statement An example of a liquid asset would be FORMTEXT a. a home. FORMTEXT b. an automobile. FORMTEXT c. a checking account. FORMTEXT d. retirement account. __________ represents amounts owed to others. FORMTEXT a. Current assets FORMTEXT b. Expenses FORMTEXT c. Mutual funds FORMTEXT d. Liabilities An example of an adjustment to income is FORMTEXT a. passive income. FORMTEXT b. child care expenses. FORMTEXT c. IRA contributions. FORMTEXT d. commission and bonuses. An exemption refers to FORMTEXT a. taxable income. FORMTEXT b. deductible expenses. FORMTEXT c. reduction from adjusted gross income. FORMTEXT d. amounts not subject to an IRS audit. When an IRS agent visits your home or office to verify tax records, this is referred to as a(n) FORMTEXT a. office audit. FORMTEXT b. field audit. FORMTEXT c. correspondence audit. FORMTEXT d. research audit. An example of tax-exempt income is FORMTEXT a. gambling winnings. FORMTEXT b. pension funds. FORMTEXT c. rental income. FORMTEXT d. interest from municipal bonds.