This quiz works best with JavaScript enabled. Home > Finance > Accounting > Budgeting > Budgeting – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Budgeting Quiz 11 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An example of a Liability is ..... A) A House. B) Property you own. C) A Car. D) Mortgage. Show Answer Correct Answer: D) Mortgage. 2. 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. 3. A record of income and expenditures for a given period of time, is known as A) Budget. B) Credit. C) Interest. D) Investment. Show Answer Correct Answer: A) Budget. 4. 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. 5. What is an example of Wants A) Food. B) Shelter. C) Water. D) Cell Phone. Show Answer Correct Answer: D) Cell Phone. 6. 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. 7. Rent is an example of which of the following? A) Variable. B) Asset. C) Fixed. D) Net worth. Show Answer Correct Answer: C) Fixed. 8. 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. 9. 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. 10. 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. 11. 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) $ 110. B) $ 765. C) $ 875. D) $ 90. Show Answer Correct Answer: C) $ 875. 12. If the bank fails, what can secure your money? A) USAA. B) FDIC. C) BPI. D) MRI. Show Answer Correct Answer: B) FDIC. 13. What does it mean to "live within your means" ? A) Spend more $ than you make. B) Use credit excessively. C) Repay college loan debts before other debt. D) Spend what you make (or less). Show Answer Correct Answer: D) Spend what you make (or less). 14. Amount taken out of your paycheck such as taxes and retirement. A) Deduction. B) Reduction. C) Debits. D) Deficit. Show Answer Correct Answer: A) Deduction. 15. Money received generally for earnings, gifts, and/or payment for goods or services, is called ..... A) Income. B) Expenses. C) Liability. D) Assets. Show Answer Correct Answer: A) Income. 16. Doing a budget does all the following EXCEPT A) Show if you are overspending in an area. B) Make overspending more likely. C) Remove guilt and shame sometimes associated with a purchase. D) Make your money go further. Show Answer Correct Answer: B) Make overspending more likely. 17. Anything you owe; a debt. A) Liability. B) Consumer. C) Asset. D) Interest. Show Answer Correct Answer: A) Liability. 18. Who prepared the budget manual? A) Marketing. B) Administration. C) Accountant. D) Customer Service. Show Answer Correct Answer: C) Accountant. 19. Amount of income after costs of goods and taxes are deducted A) Variable income. B) Net income. C) Gross income. D) Fixed income. Show Answer Correct Answer: B) Net income. 20. Housing, transportation and food comprise over ..... % of spending choices for most people. A) 40%. B) 60%. C) 80%. D) 20%. Show Answer Correct Answer: B) 60%. 21. Participative budgeting in which everyone contributes to the budget A) Incremental Budget. B) Bottom-Up Approach. C) Top-Down Approach. D) Zero-Based Budget. Show Answer Correct Answer: B) Bottom-Up Approach. 22. Which of the following is a responsible spending practice? A) Always shopping at the most expensive stores. B) Buying an item that looks good to me, even if I do not need it. C) Buying an item that is included in my spending plan. D) Spending more money than I have planned. Show Answer Correct Answer: C) Buying an item that is included in my spending plan. 23. Putting $ 100 in a savings account today and earning 4% interest over the next year illustrates the concept of A) Inflationary impact. B) The time value of money. C) Opportunity cost. D) Principal modification. Show Answer Correct Answer: B) The time value of money. 24. The following statements is TRUE except.. A) Budget is a detailed plan that shows financial consequences of an organization operating activities. B) Budget is a financial plan. C) Budget is a short term financial plan. D) Budget is a long term financial plan. Show Answer Correct Answer: D) Budget is a long term financial plan. 25. Keeping your budget will keep you ..... for your goals. A) Off track. B) On track. C) Distracted from. D) Annoyed about thinking. Show Answer Correct Answer: B) On track. 26. A written budget, if followed, removes from your finances. A) Overspending. B) Guilt. C) Management by crisis. D) All of the above. Show Answer Correct Answer: D) All of the above. 27. Cash and things that are owned by the individual or the business for which a financial statement is prepared are listed as: A) Working capital. B) Equity. C) Debts. D) Assets. Show Answer Correct Answer: D) Assets. 28. Insurance payment A) Anticipated income. B) Variable expense. C) Unexpected expense. D) Fixed expense. Show Answer Correct Answer: D) Fixed expense. 29. What is the company plan to avoid excessive labour time? A) Extra task. B) Staff training. C) Extra work leave. D) None of above. Show Answer Correct Answer: B) Staff training. 30. Which of the following are the best tools for budgeting? A) Personal financial management software. B) A pencil and paper. C) Computer spreadsheets. D) Any of above. Whatever works best for you. Show Answer Correct Answer: D) Any of above. Whatever works best for you. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesBudgeting Quiz 1Budgeting Quiz 2Budgeting Quiz 3Budgeting Quiz 4Budgeting Quiz 5Budgeting Quiz 6Budgeting Quiz 7Budgeting Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books