Soph AOF test

What does borrowing mean?

• Taking money with a promise to repay the money in the future.

• An itemized summary of probable income and expenses for a given period. A budget is a plan for managing income, spending, and saving during a given period of time.

• The portion of personal income available for spending after taxes and basic essentials have been deducted.

• The amount of a person's paycheck that is available to spend or save.

What does budget mean?

• Money spent to buy goods and services.

• An itemized summary of probable income and expenses for a given period. A budget is a plan for managing income, spending, and saving during a given period of time.

• The portion of personal income available for spending after taxes and basic essentials have been deducted.

• The amount of a person's paycheck that is available to spend or save.

What does discretionary income mean?

• Money spent to buy goods and services.

• The costs people incur for goods and services. Expenses are often

  categorized as fixed, variable, and periodic.

• The portion of personal income available for spending after taxes and basic essentials have been deducted.

• The amount of a person's paycheck that is available to spend or save.

What does disposable income mean?

• Money spent to buy goods and services.

• The costs people incur for goods and services. Expenses are often

  categorized as fixed, variable, and periodic.

• Disposable income is something that occur each month in a regular amount, such as rent, car payments, and mortgage payments.

• The amount of a person's paycheck that is available to spend or save.

What does expenditures mean?

• Money spent to buy goods and services.

• The costs people incur for goods and services. Expenses are often

  categorized as fixed, variable, and periodic.

• Expenditures are those that occur each month in a regular amount, such as rent, car payments, and mortgage payments.

• Expenditures are those that change from one time period to the next, such as food, clothing, gasoline, and entertainment. Periodic expenses are those that occur several times a year, such as car insurance and life insurance payments.

What does expenses mean?

• The amount people earn per pay period before any deductions or taxes are paid.

• The costs people incur for goods and services. Expenses are often

  categorized as fixed, variable, and periodic.

• Expenses are those that occur each month in a regular amount, such as rent, car payments, and mortgage payments.

• Expenses are those that change from one time period to the next, such as food, clothing, gasoline, and entertainment. Periodic expenses are those that occur several times a year, such as car insurance and life insurance payments.

What does fixed expenses mean?

• The amount people earn per pay period before any deductions or taxes are paid.

• The payment people receive for providing resources in the marketplace. When people work, they provide human resources (labor) and in exchange they receive income in the form of wages or salaries. People also earn income in the forms of rent, profit, and interest.

• Fixed expenses are those that occur each month in a regular amount, such as rent, car payments, and mortgage payments.

• Fixed expenses are those that change from one time period to the next, such as food, clothing, gasoline, and entertainment. Periodic expenses are those that occur several times a year, such as car insurance and life insurance payments.

What does variable expenses mean?

• The amount people earn per pay period before any deductions or taxes are paid.

• The payment people receive for providing resources in the marketplace. When people work, they provide human resources (labor) and in exchange they receive income in the form of wages or salaries. People also earn income in the forms of rent, profit, and interest.

• A sum of money provided temporarily on the condition that the amount borrowed be repaid, usually with interest.

• Variable expenses are those that change from one time period to the next, such as food, clothing, gasoline, and entertainment. Periodic expenses are those that occur several times a year, such as car insurance and life insurance payments.

What does gross pay mean?

• The amount people earn per pay period before any deductions or taxes are paid.

• The payment people receive for providing resources in the marketplace. When people work, they provide human resources (labor) and in exchange they receive income in the form of wages or salaries. People also earn income in the forms of rent, profit, and interest.

• A sum of money provided temporarily on the condition that the amount borrowed be repaid, usually with interest.

• An amount of money saved for a special occasion, such as retirement or buying a house.

What does income mean?

• Gross pay minus deductions and taxes.

• The payment people receive for providing resources in the marketplace. When people work, they provide human resources (labor) and in exchange they receive income in the form of wages or salaries. People also earn income in the forms of rent, profit, and interest.

• A sum of money provided temporarily on the condition that the amount borrowed be repaid, usually with interest.

• An amount of money saved for a special occasion, such as retirement or buying a house.