This quiz works best with JavaScript enabled. Home > Accounting > Budgeting > Budgeting – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Budgeting Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Kylie plans on using the 50/30/20 rule for budgeting. How will she split her budget? A) 50% needs, 30% wants, 20% savings. B) 50% budget, 30% needs, 20% wants. C) 50% saving, 30% needs, 20% wants. D) $ 50 needs, $ 30 wants, $ 20 savings. Show Answer Correct Answer: A) 50% needs, 30% wants, 20% savings. 2. Which of the following is NOT a component of a budget? A) Credit score. B) Saving. C) Income. D) Giving. Show Answer Correct Answer: A) Credit score. 3. Assets may include which of the following? A) Feed store bill. B) Equipment. C) Equipment loans. D) Borrowed cash. Show Answer Correct Answer: B) Equipment. 4. You are developing a savings plan and using short-, medium-and long-term goals to motivate you. Which of the following might you pick as the most long-term goal? A) Saving for retirement. B) Saving for a down payment on a home. C) Saving to buy a car. D) Saving to go on vacation. Show Answer Correct Answer: A) Saving for retirement. 5. The first step involved in preparing a master budget is A) Preparing a forecasted income statement. B) Preparing a general operating budget. C) Preparing s forecasted statement of financial position. D) Preparing s forecasted statement of financial position. Show Answer Correct Answer: B) Preparing a general operating budget. 6. Zero-based bugeting starts from a " ..... ". A) Zero base. B) Zero points. C) Zero needs. D) Zero basic. Show Answer Correct Answer: A) Zero base. 7. Cost of catering based on number of participants will be consideredas ..... cost. A) Direct. B) Fixed. C) Variable. D) Joint. Show Answer Correct Answer: C) Variable. 8. What is NOT one of the benefits of budgeting A) Planning ahead. B) Knowing the future will always be correct. C) Creating early warning system. D) Motivating personnel. Show Answer Correct Answer: B) Knowing the future will always be correct. 9. Pretty much everything you need, want or do requires what A) Time. B) Needs. C) Money. D) Budget. Show Answer Correct Answer: C) Money. 10. To make effective use of a budget, you must periodically compare budgeted costs to ..... costs. A) Fixed. B) Direct. C) Actual. D) Variable. Show Answer Correct Answer: C) Actual. 11. Which SMART Goal component is the following:Austin will save $ 600. A) S. B) M. C) A. D) R. Show Answer Correct Answer: B) M. 12. The computer software that can most effectively help us plan our income and spending is [Think of the assignment in which YOU created a budget]: A) PowerPoint. B) Google Sheets. C) Acrobat. D) Word. Show Answer Correct Answer: B) Google Sheets. 13. If transportation costs include a car payment and gas, and Ryan's car payment is $ 350 and he pays $ 100 for gas, what percentage is Ryan paying for transportation costs each month if his take home pay is $ 9, 000? A) 5 %. B) 3.8 %. C) 1.1 %. D) 28 %. Show Answer Correct Answer: A) 5 %. 14. Which of these is the correct way to calculate savings A) Expenses-income=saving. B) Savings-income=expenses. C) Income-savings=savings. D) Income-expenses=savings. Show Answer Correct Answer: D) Income-expenses=savings. 15. Which of the following is an example of a "life change" that would effect your budget? A) Marriage. B) Children. C) Change in job. D) All of these. Show Answer Correct Answer: D) All of these. 16. Rent, mortgage payments, tuition and insurance payments are all examples of: A) Variable expenses. B) Fixed expenses. C) Discretionary expenses. D) Periodic expenses. Show Answer Correct Answer: B) Fixed expenses. 17. A(n) ..... is a financial obligation that must be paid such as a home or car loan. A) Asset. B) Expense. C) Income. D) Liability. Show Answer Correct Answer: D) Liability. 18. Which of the following is NOT an example of an asset? A) Children. B) Cash. C) Equipment. D) Buildings. Show Answer Correct Answer: A) Children. 19. One of the keys to effective budgeting is ..... A) Assign responsbility. B) Keep investigate the previous budget. C) Review the history of events. D) Know the level of financial in the company. Show Answer Correct Answer: D) Know the level of financial in the company. 20. How many categories should you have in your budget? A) 15 or more. B) No more than 10. C) At least 3. D) No limit; use as many as you need to keep your budget accurate!. Show Answer Correct Answer: D) No limit; use as many as you need to keep your budget accurate!. ← PreviousNext →Related QuizzesAccounting QuizzesBudgeting Quiz 1Budgeting Quiz 2Budgeting Quiz 3Budgeting Quiz 4Budgeting Quiz 5Budgeting Quiz 7Budgeting Quiz 8Budgeting Quiz 9Budgeting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books