1. When your assets exceed your liabilities, you are

insolvent

solvent

unable to meet your financial targets

in financial distress

2. Which of the following is true of budgets?

Budgets describe a person’s financial goals over a specific period of time.

Budgets are historical documents that tell an individual how he or she has performed in the past.

Budgets measure a person’s financial performance at a given point in time.

Budgets describe a person’s financial position at a given point in time.

Budgets are detailed forward looking financial reports based on expected income and expenses.