Metropolitan Community College
Personal Finance (FINA 1200)
Quiz 1 Study Guide

Know the steps in the budgeting process – organizing, setting financial goals, decision
making (3)

Calculate the disposable income given wages, social security taxes and insurance cost (4)

Know what is and is not unearned income – interest, dividends, etc (4)

Be able to calculate the asset to debt ratio (3)

Be able to calculate the basic liquidity ratio (3)

Know examples of non-salary benefits – tuition reimbursement, sick leave, child care,
etc (2)

Know how to calculate future value of a lump sum (1)

Review what are fixed vs. variable expenses in a budget (3)

Know the time period of the business cycle – 4 to 5 years (1)

Identify good sources to use when constructing a balance sheet (3)

Understand what is a flexible spending account (FSA) – a government approved tax
deferral of savings for medical expenses (1)

Know the income which is the basis that taxes are determined – taxable income (4)

Know the steps to successful career planning – career goals, assessments, Identify
values, cost vs. benefit trade-off, networking, values, target employers, etc (2)

Know the maximum credit available to a taxpayer per calendar year for the American
Opportunity Tax Credit - $2,500 (4)

Know when to itemize deductions vs. standard deduction to reduce tax liability (4)

Know the legal rights of an employee once hired – (2)

Identify the economic phase when conditions make it easy for consumers to buy a home
– expansion (1)

Be able to calculate and compare the return for a taxable bond vs a tax-exempt bond (4)