This quiz works best with JavaScript enabled. Home > Finance > Accounting > Budgeting > Budgeting – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Budgeting Quiz 1 (30 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) Planning. B) Accounting. C) Budgeting. D) Auditing. Show Answer Correct Answer: A) 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) Revenue. B) Gross pay. C) Take home pay. D) Net pay. Show Answer Correct Answer: B) Gross pay. 4. When employees intentionally underestimate revenues and overstate expenses A) Incremental Budget. B) Budgetary Avoidance. C) Zero-Based Budget. D) Budgetary Slack. Show Answer Correct Answer: D) Budgetary Slack. 5. Another name for Expenditures A) Goals. B) Taxes. C) Discretionary. D) Expenses. Show Answer Correct Answer: D) 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 will not need insurance. B) A person can stop saving at age 40. C) Income is greater when a person is young. D) Of the effect of compounding on growth. Show Answer Correct Answer: D) Of the effect of compounding on growth. 8. Commission is when you make money based on the percentage of ..... A) Items sold. B) Investments. C) Budgets. D) Total sales. Show Answer Correct Answer: D) Total sales. 9. Which of the following is likely to be a fixed expense? A) Student loans. B) Gas. C) Entertainment. D) Dining out. Show Answer Correct Answer: A) Student loans. 10. What is money received for work or through investment? A) Income. B) Spending. C) Budget. D) Savings. Show Answer Correct Answer: A) Income. 11. MatchingIncome and expenses A) Estimate. B) Cash flow. C) Budget surplus. D) Fixed expense. Show Answer Correct Answer: B) Cash flow. 12. 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%. 13. 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. 14. 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. 15. An account where you set aside funds to be used for unexpected expenses. You should have 6 months saved. A) Balanced budget. B) Fixed expense. C) Emergency fund. D) Pay yourself first. Show Answer Correct Answer: C) Emergency fund. 16. What expense category would most likely increase due to having a new baby? A) Utilities. B) Housing. C) Entertainment. D) Child care. Show Answer Correct Answer: D) Child care. 17. Which of the following is NOT covered by Property Damage Liability Coverage? A) Poles. B) Signs. C) Cars. D) Medical Bills. Show Answer Correct Answer: D) Medical Bills. 18. A 9th grader makes and sells earrings as a way to earn extra money. The money she gets is considered ..... A) Wants. B) Income. C) Needs. D) Outflow. Show Answer Correct Answer: B) Income. 19. 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. 20. All of the following are examples of supplemental income, except A) Disability. B) Workman's comp. C) Child support. D) Your regular paycheck. Show Answer Correct Answer: D) Your regular paycheck. 21. May change or fluctuate; sometimes can be hard to predict A) Liabilites. B) Assets. C) Variable expenses. D) Fixed expenses. Show Answer Correct Answer: C) Variable expenses. 22. Your emergency savings fund should have how many months worth of income? A) 3-6 months. B) 10 months. C) It doesn't matter. D) 1-2 months. Show Answer Correct Answer: A) 3-6 months. 23. A ..... is an approximate calculation or judgement of the value A) Budget. B) Income. C) Expenditure. D) Estimate. Show Answer Correct Answer: D) Estimate. 24. Going to the movies is an example of what types of expenses? A) Intermittent and variable. B) Discretionary and variable. C) Discretionary and fixed. D) Intermittent and fixed. Show Answer Correct Answer: B) Discretionary and variable. 25. What can you earn on your money when you keep a savings account at a bank? A) Debt. B) Credit. C) Interest. D) Allowance. Show Answer Correct Answer: C) Interest. 26. Dave recommends putting cash in a(n) ..... for managing spending on things that don't normally have a fixed monthly expense. A) Vault. B) Secret hiding spot. C) Envelope. D) IRA. Show Answer Correct Answer: C) Envelope. 27. A ..... expense is one that remains the same each month. A) Fixed. B) Variable. C) Periodic. D) None of these. Show Answer Correct Answer: A) Fixed. 28. A critical aspect of financial planning involves A) Setting broad financial goals. B) Saving money for unexpected situations. C) Investing money in high-risk securities. D) Obtaining several credit cards. Show Answer Correct Answer: B) Saving money for unexpected situations. 29. What is a discretionary Income? A) An estimate of income and exponditure for a set period of time. B) A corporate expense that varries with production output. C) Income remaining after deduction of taxes, other mandatory charges. D) Cannot avoid or help doing something. Show Answer Correct Answer: C) Income remaining after deduction of taxes, other mandatory charges. 30. What two things does a budget compare? A) Income and Expenses. B) Savings and Interest. C) Income and Investments. D) Expenses and Expenditures. Show Answer Correct Answer: A) Income and Expenses. Next →Related QuizzesAccounting QuizzesFinance QuizzesBudgeting 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