Budgets & Records

The two elements to consider in budgeting and planning are your income and your expenses.

 

 

• a. 

  True

• b. 

  False

A set of goals for spending, saving, and investing the money you receive is called a budget.

 

 

• a. 

  True

• b. 

  False

Before you prepare a budget, it is a good idea to keep track of your income and expenses for a month or two.

 

 

• a. 

  True

• b. 

  False

 In the short-run, fixed costs are easier to change than variable costs.

 

• a. 

  True

• b. 

  False

The equation for net worth is Assets-Liabilities=Networth

 

 

• a. 

  True

• b. 

  False

6. When preparing a budget, you need to focus mostly on your

 

 

• a. 

  gross income.

• b. 

  disposable income.

• c. 

  taxable income.

• d. 

  net income.

If your expenses exceed your income in your budget, you may need to revise what you spend your money on, and how much you spend. 

• True

• False

What is the first step you should take when planning your budget?

• reviewing and adjusting your expenses

• add up all of your income

• divide your expenses into fixed vs variable

• make a list of all your expenses and spending

9. Which of the following is a variable expense?

 

 

• a. 

  insurance premium

• b. 

  rent

• c. 

  grocery bill

• d. 

  car loan

10. Fix expenses tend to

• a always change

• b change weekly

• c stay the same

• d never change