WISE TEST QUESTIONS & ANSWERS

WISE TEST QUESTIONS & ANSWERS

Question: What is the definition of budget variance?
CORRECT ANSWER: the difference between the
budgeted amount and the actual amount that you spend
Question: What does the debt ratio show?
CORRECT ANSWER: shows the relationship between
debt and net worth.
Question: What does a lower debt ratio indicate?
CORRECT ANSWER: The lower the ratio the better off
financially the person is.
Question: How is the debt ratio calculated?
CORRECT ANSWER: calculated by dividing liabilities
by net worth

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