This quiz works best with JavaScript enabled. Home > Accounting > Budgeting > Budgeting – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Budgeting Quiz 16 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The budgeting system that requires budget holders to justify the money that they wish to spend is known as: A) Budgetary control. B) Flexible budgeting. C) Zero Budgeting. D) Incremental Budgeting. Show Answer Correct Answer: C) Zero Budgeting. 2. There are ..... classification for the functions of budget. A) 2. B) 3. C) 4. D) 5. Show Answer Correct Answer: A) 2. 3. When it comes to managing money, success is about ..... % head knowledge and ..... % behavior. A) 50/50. B) 20/80. C) 60/40. D) 70/30. Show Answer Correct Answer: B) 20/80. 4. A record of income and spending for managing money A) Plan. B) Budget. C) Wish. D) Want. Show Answer Correct Answer: B) Budget. 5. Which one of these expenses most likely represents a VARIABLE (changes) cost in someone's budget? A) Electricity bill. B) Rent. C) Car insurance premium. D) Student loan payment. Show Answer Correct Answer: A) Electricity bill. 6. Which of these statements about budgeting is correct: A) Budget can help motivate the staff. B) A budget is a financial plan. C) A forecast looks forward whereas budget looks back. D) Budget provides coordination and direction. Show Answer Correct Answer: C) A forecast looks forward whereas budget looks back. 7. An example of a Liability is ..... A) A House. B) A Car. C) Mortgage. D) Property you own. Show Answer Correct Answer: C) Mortgage. 8. Why do you want to have savings? A) Financial emergencies. B) Exciting financial opportunties. C) Financial security. D) All of these. Show Answer Correct Answer: D) All of these. 9. A record of income and expenditures for a given period of time, is known as A) Credit. B) Investment. C) Budget. D) Interest. Show Answer Correct Answer: C) Budget. 10. The rule "pay yourself first" means to A) Save and invest first. B) Have fun before you pay the bills. C) Only cash your checks. D) Try to put 10% of your paycheck into savings. Show Answer Correct Answer: A) Save and invest first. 11. What is an example of Wants A) Cell Phone. B) Water. C) Food. D) Shelter. Show Answer Correct Answer: A) Cell Phone. 12. In order for a profit center to be created, a firm must be able to identify both ..... and ..... from the relevant business area. A) Profit and variances. B) Inflows and outflows. C) Costs & revenue. D) Favorable and unfavorable variances. Show Answer Correct Answer: C) Costs & revenue. 13. Rent is an example of which of the following? A) Fixed. B) Variable. C) Net worth. D) Asset. Show Answer Correct Answer: A) Fixed. 14. What is NOT true about unexpected expenses? A) They do not occur if you have a budget. B) They could impact your budget in a negative way. C) They could interfere with your ability to pay your bills. D) They should be planned for so that you can keep within your budget. Show Answer Correct Answer: A) They do not occur if you have a budget. 15. The economic condition of limited resources that prevents people from having everything they want. A) Decisions. B) Scarcity. C) Opportunities. D) Choices. Show Answer Correct Answer: B) Scarcity. 16. Car payment A) Fixed expense. B) Unexpected expense. C) Variable expense. D) Anticipated income. Show Answer Correct Answer: A) Fixed expense. 17. What is the first step in budgeting? A) Record what you spend. B) Estimate your income. C) Set financial goals. D) Review and evaluate monthly. Show Answer Correct Answer: C) Set financial goals. 18. Carla's monthly income is $ 2, 500. She can spend 35% of her monthly income on her housing category, how much money does she have to spend in this category? A) $ 875. B) $ 110. C) $ 765. D) $ 90. Show Answer Correct Answer: A) $ 875. 19. If the bank fails, what can secure your money? A) FDIC. B) BPI. C) USAA. D) MRI. Show Answer Correct Answer: A) FDIC. 20. What does it mean to "live within your means" ? A) Use credit excessively. B) Spend what you make (or less). C) Repay college loan debts before other debt. D) Spend more $ than you make. Show Answer Correct Answer: B) Spend what you make (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