This quiz works best with JavaScript enabled. Home > Accounting > Budgeting > Budgeting – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Budgeting Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Money left after all essentials have been paid for is called ..... A) Deficit. B) Commission. C) Discretionary income. D) Net pay. Show Answer Correct Answer: C) Discretionary income. 2. A(n) ..... is when you spend more money than you have in your account. A) Overdraft. B) Endorsement. C) Overage. D) Reserve. Show Answer Correct Answer: A) Overdraft. 3. A ..... is money that you borrow that needs to be paid back. A) Grant. B) Loan. C) Scholarship. D) Fund. Show Answer Correct Answer: B) Loan. 4. People keep a personal budget to help them A) Set and reach financial goals. B) Earn promotions at work. C) Buy with credit. D) Buy anything they want. Show Answer Correct Answer: A) Set and reach financial goals. 5. Contraction is where ..... A) Government spending is equal to tax revenue. B) Decrease in government expenditures and/or an increase in taxes. C) Increase in government expenditures and /or a decrease in taxes. D) None of above. Show Answer Correct Answer: B) Decrease in government expenditures and/or an increase in taxes. 6. What is the best way to budget your income if you work a different number of hours each week? A) By averaging income over several weeks. B) By estimating income over several weeks. C) By averaging income over several months. D) By estimating income over several months. Show Answer Correct Answer: C) By averaging income over several months. 7. When you take money out of your bank account A) Deposit. B) Balance. C) Withdrawal. D) Checkbook. Show Answer Correct Answer: C) Withdrawal. 8. A good practice for staying within your budget especially if your income varies is to A) Estimate your income as more than you think you will receive. B) Estimate your income as less than you think you will receive. C) Don't estimate your income as all. D) Put any number you want. Show Answer Correct Answer: B) Estimate your income as less than you think you will receive. 9. What is budgeting? A) Having money left over at the end of the month. B) A plan made in advance regarding the expenditure of money based on available income. C) The ability to pay your bills on time. D) Having enough money to go out to eat. Show Answer Correct Answer: B) A plan made in advance regarding the expenditure of money based on available income. 10. You crash your car into another vehicle and hurt someone else in the car A) Bodily Injury Liability. B) Property Damage Liability. C) Collision Insurance. D) Comprehensive Insurance. Show Answer Correct Answer: A) Bodily Injury Liability. 11. Essentials are ..... A) Heat. B) Food and water. C) Transportation. D) All of the above. Show Answer Correct Answer: D) All of the above. 12. Actual costs state that costs ..... A) Have been estimated possibily by using Forecasted Costs. B) Comparison between costing and estimating. C) Only staff time and effort. D) Which have occurred and can be reliably measured. Show Answer Correct Answer: D) Which have occurred and can be reliably measured. 13. Labour and administrative costs are developed in this budget for a period of time A) Capital Budget. B) Cash Flow Budget. C) Purchase Budget. D) Operating Budget. Show Answer Correct Answer: D) Operating Budget. 14. Which one of the following is an adverse variance? A) Marketing expenditure lower than the budget. B) Raw material cost lower than the budget. C) Gross profit margin higher than the budget. D) Sales revenue lower than the budget.. Show Answer Correct Answer: D) Sales revenue lower than the budget.. 15. Which one of these would result in a favourable budget variance? A) Budget cost $ 18; Actual cost $ 16. B) Budget revenue $ 125k;Actual revenue $ 115k. C) Actual gross profit $ 13k ;Budget gross profit$ 16k. D) Actual sales $ 40k; Budget sales $ 42k. Show Answer Correct Answer: A) Budget cost $ 18; Actual cost $ 16. 16. Which of the following is true about net income? A) It is the amount of income after cost of goods are deducted. B) It is also known as "pretax". C) It raises fees on interest rates. D) It improves credit scores. Show Answer Correct Answer: A) It is the amount of income after cost of goods are deducted. 17. Usually, the first step in the production of the master budget is the: A) Sales forecast. B) Cash Budget. C) Production budget. D) Sales budget. Show Answer Correct Answer: A) Sales forecast. 18. Clearly written financial goals are known by the acronym A) GOALS. B) SOUND. C) SMART. D) None of these-you're making this up. Show Answer Correct Answer: C) SMART. 19. A worksheet listing your assets, liabilities, and net worth is called a(n) ..... A) Personal balance sheet. B) Budget. C) Spreadsheet. D) Commissions. Show Answer Correct Answer: A) Personal balance sheet. 20. Most short-term goals are based on activities over the next A) 1 year or less. B) 3-4 years. C) 5-10 years. D) More than 10 years. Show Answer Correct Answer: A) 1 year or less. ← PreviousNext →Related QuizzesAccounting QuizzesBudgeting Quiz 1Budgeting Quiz 2Budgeting Quiz 3Budgeting Quiz 4Budgeting Quiz 5Budgeting Quiz 6Budgeting Quiz 7Budgeting Quiz 8Budgeting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books