This quiz works best with JavaScript enabled. Home > Finance > Accounting > Budgeting > Budgeting – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Budgeting Quiz 14 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Good or service that makes people more comfortable but not necessary for survival A) Want. B) Need. C) Wish. D) Plan. Show Answer Correct Answer: A) Want. 2. Which of the following will not appear in a cash budget? A) Machinery bought on lease. B) Depreciation of machinery. C) Wages. D) Sales revenue. Show Answer Correct Answer: B) Depreciation of machinery. 3. What does the S in S MART stand for? A) Sarcastic-a goal must say one thing and mean another. B) Simple-a goal must be easy. C) Sample-a goal must be typical. D) Specific-a goal must be focused. Show Answer Correct Answer: D) Specific-a goal must be focused. 4. ..... protects the lender in case you can't make your mortgage loan payments and the lender has to take the property back through a process known as foreclosure A) Rent. B) Private Mortgage Insurance (PMI). C) Renters Insurance. D) Lease. Show Answer Correct Answer: B) Private Mortgage Insurance (PMI). 5. An emergency fund should NOT be used for ..... A) A last-minute school trip. B) Fixing a blown tire on your car that you use to get to work. C) Repairing your laptop that you use for homework. D) A sudden health issue that needs care. Show Answer Correct Answer: A) A last-minute school trip. 6. Listed are the objectives of financial administration, except A) To accomplish state's objectives. B) To achieve efficiency and effectiveness. C) To allow wastage of national resources. D) To avoid misuse and mismanagement of resources. Show Answer Correct Answer: C) To allow wastage of national resources. 7. Which of these actions might help correct an adverse overheads variance? A) Cut supplier payments for raw materials. B) Offer promotional discounts. C) Increase bonus payments. D) Reduce Head Office staff numbers. Show Answer Correct Answer: D) Reduce Head Office staff numbers. 8. What part of SMART is missing? This month, the first time my mother asks me to do something, I will do what she asks. A) Not measurable. B) Not time bound. C) Not specific enough. D) Not attainable. Show Answer Correct Answer: A) Not measurable. 9. In the video, what were some of the necessities in Derek and Ginny's budget? A) Housing. B) Transportation. C) School. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. Which of the following is not a record-keeping feature you could expect from your bank? A) An account register. B) Customer service reconciles your account for you. C) A monthly account statement. D) A reconciliation sheet. Show Answer Correct Answer: B) Customer service reconciles your account for you. 11. Money owed; debts A) Liabilities. B) Expenses. C) Budgets. D) Assets. Show Answer Correct Answer: A) Liabilities. 12. According to the traditional approach, the budget is prepared ..... a year by the manager for each budget centre. A) Every months. B) Once. C) Twice. D) Every quarters. Show Answer Correct Answer: B) Once. 13. When setting a budget, you can choose to make room for: A) Financial goals. B) Entertainment expenses. C) Charitable donations. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. Which of the following is NOT a benefit of budgeting? A) Relying on debt. B) Improving credit score. C) Establishing a projected goal. D) Setting up emergency funds. Show Answer Correct Answer: A) Relying on debt. 15. An item that is bought without previous planning or consideration. A) Impulse purchase. B) Credit spending. C) Non-allocation. D) Self giving purchase. Show Answer Correct Answer: A) Impulse purchase. 16. Steve is a computer programmer and he works 35 hours a week. Steve gets paid $ 25 / per hour. Calculate his gross pay before deductions. A) $ 875. B) $ 350. C) $ 400. D) $ 250. Show Answer Correct Answer: A) $ 875. 17. An account that customers use for financial transactions such as depositing and withdrawing money. A) Savings Account. B) Banking Account. C) Debit Card. D) Financial Institute. Show Answer Correct Answer: B) Banking Account. 18. The cost of groceries and gas is considered a(n) ..... A) Income. B) Variable Expense. C) Net Income. D) Discretionary Expense. Show Answer Correct Answer: B) Variable Expense. 19. Which of the following formulas calculates net amount? A) Revenue-losses. B) Revenues + losses. C) Losses-revenues. D) Revenues +net worth. Show Answer Correct Answer: A) Revenue-losses. 20. The second logical step in preparing a master budget would be to: A) Estimate the cost of goods sold. B) Forecast sales during the budget period. C) Establish the basic goals and long-range plans for the company. D) Forecast general and administrative expenses for the budget period. Show Answer Correct Answer: B) Forecast sales during the budget period. 21. Which one is not a variable expense/cost (changing ) payment? A) Rent/mortgage. B) Electric bill. C) Food. D) Water bill. Show Answer Correct Answer: A) Rent/mortgage. 22. What are the two basic parts of a budget? A) Income and expenses. B) Assets and liabilities. C) Cash and loans. D) Savings and bills. Show Answer Correct Answer: A) Income and expenses. 23. If you are investing for a goal that you hope to reach within three years, you are investing for a(n) A) Short-term time horizon. B) Risk-tolerant time horizon. C) Long-term time horizon. D) Intermediate-term time horizon. Show Answer Correct Answer: D) Intermediate-term time horizon. 24. It's very important to ..... for what your going to do with your money A) Budget. B) Plan. C) Use. D) None of above. Show Answer Correct Answer: B) Plan. 25. Car maintenance is what type of expense? A) Fixed. B) Variable. C) Periodic. D) None of above. Show Answer Correct Answer: C) Periodic. 26. An expense that will be the same total amount regardless of changes in the amount of sales, production, or some other activity. A) Deficit. B) Pay yourself first. C) Fixed expense. D) Spending plan. Show Answer Correct Answer: C) Fixed expense. 27. The usual starting point for a master budget is: A) The budgeted income statement. B) The production budget. C) The direct materials purchase budget. D) The sales forecast or sales budget. Show Answer Correct Answer: D) The sales forecast or sales budget. 28. What is NOT a good way to prevent unnecessary spending? A) Cancel any unused recurring expenses like subscription boxes. B) Use and app to find the cheapest gas station. C) Make your own food more often. D) Buy all of your wants at one time. Show Answer Correct Answer: D) Buy all of your wants at one time. 29. What is the "S" in SMART Goal? A) Small. B) Separate. C) Specific. D) Silly. Show Answer Correct Answer: C) Specific. 30. When the actual amount we spent was in excess of the our income, this is called: A) Deficit. B) Surplus. C) On budget. D) None of these. Show Answer Correct Answer: A) Deficit. ← 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