7 EMS: Terminology Revision 1

Something that you pay is called....

• income
• an expense
• a profit
• savings

Money that you make is called...

• income
• variable expense
• propery taxes
• fixed expense

When you take the amount of money earned and subtract your expenses you are finding the...

• fixed income
• profit
• savings
• taxes

Each month I pay around R400 for petrol, but it depends on how much I travel and what the petrol prices are. This is an example of a...

• variable income

• savings account

• fixed expense

• variable expense

Alyssa has her first job at the local bakery. After working for one week, she received her first paycheck in cash. The total amount of money she is able to put in the bank is R175.62. What type of income does this amount describe?

• Gross Income

• Net Income

• Both Gross and Net Income

• None of the above

If Sammy’s expenses are greater than his income, what must he do to balance his budget?

• Earn more money
• Spend less money on expenses
• Earn more money AND spend less
• None of the above

Mrs. Allen took home R1,245 after taxes. What is this considered?

• Net income

• Gross income

• Deposits

• Income tax

Financial Literacy is having the knowledge, understanding, and skills necessary to become an effective consumer/business owner.

• True

• False

When is an item considered an asset?

• While you are making monthly payments on time

• Converting an asset into cash

• When cash is used for emergencies

• When it is fully paid off and can be sold for cash

The total amount of personal income after taxes and deductions.

• Net Income

• Gross Income