Income & Expenditure Quiz

What is a primary source of income for most individuals?

• Investments

• Employment

• Lottery winnings

• Inheritance

Which of the following is a tool commonly used for budgeting personal finances?

• Spreadsheet

• Text editor

• Photo editing software

• Music player

What does it mean to record income accurately?

• Estimating income to the nearest thousand

• Writing down income as soon as it is received

• Only recording income from primary jobs

• Rounding income figures to make calculations easier

Which type of expenditure is typically considered fixed?

• Dining out

• Vacation expenses

• Rent

• Shopping for clothes

What is a variable expense?

• Mortgage payment

• Car insurance

• Electricity bill

• Gym membership

Why is it important to analyze expenditure patterns?

• To prepare for tax season

• To identify areas for potential savings

• To impress friends

• To find the best deals on products

What is considered a secondary source of income?

• Salary from primary job

• Interest from savings

• Gift money

• Loan repayment

Which of the following is NOT a recommended practice for recording income and expenses?

• Keeping receipts

• Using a financial app

• Guessing amounts when unsure

• Reviewing bank statements

What is the purpose of a budget?

• To limit the amount of money one can spend on hobbies

• To ensure there is no money left at the end of the month

• To manage financial resources effectively

• To impress financial advisors

Which of the following would be categorized as discretionary spending?

• Rent

• Health insurance

• Movie tickets

• Electricity bill