This quiz works best with JavaScript enabled. Home > Accounting > Budgeting > Budgeting – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Budgeting Quiz 25 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If Lauren earns $ 24, 000 annually, her mortgage/rent payment should not exceed ..... (Hint:35% of monthly income) A) $ 375 per month. B) $ 700 per month. C) $ 2, 000 per month. D) $ 525. Show Answer Correct Answer: B) $ 700 per month. 2. All of the following are fixed expenses except: A) Apartment rent. B) Cell phone bill with unlimited minutes and data option. C) Electric bill. D) Health insurance cost. Show Answer Correct Answer: C) Electric bill. 3. A master budget consists of A) An interrelated long-term plan and operating budgets. B) Financial budgets and a long-term plan. C) Interrelated financial budgets and operating budgets. D) All the accounting journals and ledgers used by a company. Show Answer Correct Answer: C) Interrelated financial budgets and operating budgets. 4. The amount of money you make is called: A) Taxes. B) Net Pay. C) Gross Pay. D) Available Pat. Show Answer Correct Answer: C) Gross Pay. 5. Fringe benefits commonly include ..... A) Parking ticket. B) Childcare. C) Dental insurance. D) Personal use of company owned building. Show Answer Correct Answer: B) Childcare. 6. Research shows that nearly half of Americans (46%) feel stress and anxiety about the amount of ..... they have. A) Money. B) Debit cards. C) Categories in their budget. D) Personal debt. Show Answer Correct Answer: D) Personal debt. 7. The things you do with money A) Knowledge. B) Behavior. C) Consumer. D) The Five Foundations. Show Answer Correct Answer: B) Behavior. 8. Something you want to do in the future. Require time and planning. They are not something you can do this week or even this year. A) Short-term goal. B) Deficit. C) Fixed Expense. D) Long-Term Goal. Show Answer Correct Answer: D) Long-Term Goal. 9. Pay cash for college A) First Foundation. B) Second Foundation. C) Third Foundation. D) Fourth Foundation. Show Answer Correct Answer: D) Fourth Foundation. 10. A financial plan is called a A) Budget. B) Tax. C) Allowance. D) Income. Show Answer Correct Answer: A) Budget. 11. A person's debt ratio shows the relationship between debt and net worth (liabilities/assets). The lower the ratio, the A) Better off financially the person is. B) Worse off financially the person is. C) More cash the person has. D) Less cash the person has. Show Answer Correct Answer: A) Better off financially the person is. 12. A plan for dividing up your income between spending and saving options is a ..... A) Financial diary. B) Life-span goal. C) Budget. D) Filing system. Show Answer Correct Answer: C) Budget. 13. Interest paid on an investment and on any interest previously earned. A) Compound Interest. B) Simple Interest. C) Debt. D) Credit. Show Answer Correct Answer: A) Compound Interest. 14. The sales budget assumes 200 units would be sold for $ 15 each; actual sales were $ 4, 200.What was the variance? A) $ 3000 (adverse). B) $ 1200 (favourable). C) $ 1200 (adverse). D) $ 3000 (favourable). Show Answer Correct Answer: B) $ 1200 (favourable). 15. A ..... is used to add funds to a bank account A) Deposit slip. B) Signature card. C) Check. D) Check register. Show Answer Correct Answer: A) Deposit slip. 16. Get out of debt A) First Foundation. B) Second Foundation. C) Third Foundation. D) Fourth Foundation. Show Answer Correct Answer: B) Second Foundation. 17. The amount of money you earn that you actually take home is your A) Gross pay. B) Net pay. C) Total pay. D) Neat pay. Show Answer Correct Answer: B) Net pay. 18. Net worth is found by A) Subtracting expenses from income. B) Dividing monetary assets by current liabilities. C) Subtracting liabilities from assets. D) Dividing monthly debt by monthly income. Show Answer Correct Answer: C) Subtracting liabilities from assets. 19. After estimating your annual income and expenses you need to divide by what number to calculate your monthly income and expenses? A) 6. B) 12. C) 24. D) 365. Show Answer Correct Answer: B) 12. 20. A water bill is what type of expense? A) Fixed. B) Variable. C) Periodic. D) None of above. Show Answer Correct Answer: B) Variable. ← 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