This quiz works best with JavaScript enabled. Home > Accounting > Budgeting > Budgeting – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Budgeting Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. "To determine the financial plan of achieving the strategic goals and objectives" . This statement refers to the ..... process of financial administration. A) Budgeting. B) Planning. C) Accounting. D) Auditing. Show Answer Correct Answer: B) Planning. 2. What is the definition for reconcile? A) To invest. B) To be in debt. C) To match your bank statement with your checkbook. D) None of the above. Show Answer Correct Answer: C) To match your bank statement with your checkbook. 3. Earnings before deductions are A) Net pay. B) Gross pay. C) Take home pay. D) Revenue. Show Answer Correct Answer: B) Gross pay. 4. When employees intentionally underestimate revenues and overstate expenses A) Zero-Based Budget. B) Budgetary Slack. C) Incremental Budget. D) Budgetary Avoidance. Show Answer Correct Answer: B) Budgetary Slack. 5. Another name for Expenditures A) Expenses. B) Taxes. C) Discretionary. D) Goals. Show Answer Correct Answer: A) Expenses. 6. Budgeting is used to help companies: A) Plan to better satisfy customers. B) Anticipate potential problems. C) Focus on opportunities. D) All of these answers are correct. Show Answer Correct Answer: D) All of these answers are correct. 7. Financial planners generally stress the importance of starting to save and invest early because A) A person can stop saving at age 40. B) Of the effect of compounding on growth. C) Income is greater when a person is young. D) A person will not need insurance. Show Answer Correct Answer: B) Of the effect of compounding on growth. 8. Commission is when you make money based on the percentage of ..... A) Total sales. B) Investments. C) Budgets. D) Items sold. Show Answer Correct Answer: A) Total sales. 9. Rent is a A) Fixed expense. B) Discretionary expense. C) Variable expense. D) Intermittent. Show Answer Correct Answer: A) Fixed expense. 10. Which of the following is likely to be a fixed expense? A) Student loans. B) Dining out. C) Entertainment. D) Gas. Show Answer Correct Answer: A) Student loans. 11. What is money received for work or through investment? A) Budget. B) Income. C) Savings. D) Spending. Show Answer Correct Answer: B) Income. 12. MatchingIncome and expenses A) Budget surplus. B) Fixed expense. C) Estimate. D) Cash flow. Show Answer Correct Answer: D) Cash flow. 13. A typical down payment is ..... of the purchase price of the home. A) 5 to 10%. B) 10 to 20%. C) 5 to 20%. D) 10 to 15%. Show Answer Correct Answer: C) 5 to 20%. 14. Becoming money smart involves four things:work, spend, ..... and ..... A) Owning, budget. B) Behavior, knowledge. C) Save and give. D) None of above. Show Answer Correct Answer: C) Save and give. 15. Your monthly budget should include ..... A) Variable expenses. B) Fixed expenses. C) Discretionary expenses. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. An account where you set aside funds to be used for unexpected expenses. You should have 6 months saved. A) Pay yourself first. B) Fixed expense. C) Balanced budget. D) Emergency fund. Show Answer Correct Answer: D) Emergency fund. 17. What expense category would most likely increase due to having a new baby? A) Child care. B) Entertainment. C) Utilities. D) Housing. Show Answer Correct Answer: A) Child care. 18. Which of the following is NOT covered by Property Damage Liability Coverage? A) Cars. B) Poles. C) Signs. D) Medical Bills. Show Answer Correct Answer: D) Medical Bills. 19. A 9th grader makes and sells earrings as a way to earn extra money. The money she gets is considered ..... A) Income. B) Needs. C) Outflow. D) Wants. Show Answer Correct Answer: A) Income. 20. Benefits) of budgets A) Stakeholder buy-in. B) Consider alternatives when planning. C) Understand past-present-future. D) All of the above. Show Answer Correct Answer: D) All of the above. Next →Related QuizzesAccounting QuizzesBudgeting Quiz 2Budgeting Quiz 3Budgeting Quiz 4Budgeting Quiz 5Budgeting Quiz 6Budgeting Quiz 7Budgeting Quiz 8Budgeting Quiz 9Budgeting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books