Unit 3 - Financial Management

Which type of budget is an estimate of the actual money received and paid out for a specific period?

• an accounting budget

• a final budget

• a cash budget

• a balanced budget

The first step of the budgeting process is to

• prepare a list of each type of income and expense that will be part of the budget.

• calculate each type of income, expense, and the amount of net income or loss

• explain the budget to people who need to make financial decisions

• gather accurate financial information

The final step in the financial decision-making process is to

• prepare a budget.

• make needed adjustments to the budget.

• examine the budget for discrepancies.

• check to see if income and expenses are meeting budgeted amounts.

An income statement usually covers

• one to two years.

• one week.

• three to six months or less.

• five years.

Employers must make matching contributions to

• income taxes.

• unemployment taxes.

• FICA (Social Security and Medicare) taxes.

• all of the options

Jerry's gross pay was $525.00. He had the following deductions taken from his pay check (Federal Income Tax $78.75, State Income Tax $36.75, FICA $40.16) What is his Net Pay?

• $525.00

• $369.34

• $155.66

Which of the following assets is not considered as current asset: 

• Stock
• Furniture 
• Cash
• Goodwill

The total amount of income from wages prior to taxes or deductions

• gross income

• net income

• income

• wages

To prepare a budget, a business must be able to identify and predict the amount of each source of income and each type of expense.

• True

• False

Payroll taxes consist of income taxes, Social Security, Medicare, and unemployment taxes.

• True

• False