This quiz works best with JavaScript enabled. Home > Finance > Accounting > Budgeting > Budgeting – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Budgeting Quiz 17 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Pay cash for college A) First Foundation. B) Second Foundation. C) Fourth Foundation. D) Third Foundation. Show Answer Correct Answer: C) Fourth Foundation. 2. A financial plan is called a A) Budget. B) Tax. C) Allowance. D) Income. Show Answer Correct Answer: A) Budget. 3. 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. 4. A plan for dividing up your income between spending and saving options is a ..... A) Budget. B) Filing system. C) Financial diary. D) Life-span goal. Show Answer Correct Answer: A) Budget. 5. Interest paid on an investment and on any interest previously earned. A) Simple Interest. B) Compound Interest. C) Debt. D) Credit. Show Answer Correct Answer: B) Compound Interest. 6. The sales budget assumes 200 units would be sold for $ 15 each; actual sales were $ 4, 200.What was the variance? A) $ 3000 (favourable). B) $ 3000 (adverse). C) $ 1200 (favourable). D) $ 1200 (adverse). Show Answer Correct Answer: C) $ 1200 (favourable). 7. A ..... is used to add funds to a bank account A) Deposit slip. B) Signature card. C) Check register. D) Check. Show Answer Correct Answer: A) Deposit slip. 8. The amount of money you earn that you actually take home is your A) Neat pay. B) Total pay. C) Gross pay. D) Net pay. Show Answer Correct Answer: D) Net pay. 9. Net worth is found by A) Dividing monthly debt by monthly income. B) Dividing monetary assets by current liabilities. C) Subtracting liabilities from assets. D) Subtracting expenses from income. Show Answer Correct Answer: C) Subtracting liabilities from assets. 10. 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. 11. A water bill is what type of expense? A) Fixed. B) Variable. C) Periodic. D) None of above. Show Answer Correct Answer: B) Variable. 12. Which one is Needs? A) Food. B) LV bag. C) Big house. D) Car. Show Answer Correct Answer: A) Food. 13. Create a budget from scratch A) Incremental Budget. B) Top-Down Approach. C) Zero-Based Budget. D) Bottom-Up Approach. Show Answer Correct Answer: C) Zero-Based Budget. 14. Groceries are a ..... A) Intermittent expense. B) Fixed expense. C) Discretionary expense. D) Variable expense. Show Answer Correct Answer: D) Variable expense. 15. Which is the normal procedure for the superintendent? A) Prepare a business plan for the committee. B) Adjust the committee. C) Prepare the budget and submit it to the green commmittee. D) Develop pre budget agreements. Show Answer Correct Answer: C) Prepare the budget and submit it to the green commmittee. 16. Which one of these is most likely to result in an adverse overheads variance? A) Customer respond to price cut. B) Management get a surprise pay increase. C) Capital spending fall short of budget. D) Actual gross profit margin is 5% less than budget. Show Answer Correct Answer: B) Management get a surprise pay increase. 17. Which of the following is NOT a type of farming budget? A) Whole farm. B) Liability. C) Partial. D) Enterprise. Show Answer Correct Answer: B) Liability. 18. If an expense can NOT be removed from your budget to save money, it is considered a ..... A) Want. B) Income. C) Need. D) Savings. Show Answer Correct Answer: C) Need. 19. Which of the following is an example of partial budgeting? A) Totaling acres. B) Crop enterprise budget. C) Helping the operator analyze important adjustments in the farm operation. D) Deciding what crop to plant on a small plot. Show Answer Correct Answer: D) Deciding what crop to plant on a small plot. 20. Favorable variances are those that A) Are positive. B) Lead to higher than expected profit. C) Are unexpected. D) Lead to lower than expected profit. Show Answer Correct Answer: B) Lead to higher than expected profit. 21. Costs that vary in the amount and type, depending on the choices you make A) Variable expenses. B) Liabilities. C) Assets. D) Fixed expenses. Show Answer Correct Answer: A) Variable expenses. 22. Which of the following is not an operating budget? A) Direct labor budget. B) Cash budget. C) Production budget. D) Sales budget. Show Answer Correct Answer: B) Cash budget. 23. Which option is a Need? A) Nike Sneakers. B) Car. C) Hot Tub. D) Ipod. Show Answer Correct Answer: B) Car. 24. Costs that do not change from month to month, you are obligated to pay them regardless of income variation A) Variable expenses. B) Fixed expenses. C) Wealth. D) Disposable income. Show Answer Correct Answer: B) Fixed expenses. 25. What could be the opportunity cost of going to college? A) The money you miss out on because you school instead of working a job. B) Anything you could buy with the money you paid for college. C) An activity you could have spent your time doing instead of studying. D) All of the above. Show Answer Correct Answer: D) All of the above. 26. A common reason why many small businesses don't use budgets is that: A) Budgeting can be time consuming. B) The law only requires them for large firms. C) Trading is too predictable. D) SME's don't record variances. Show Answer Correct Answer: A) Budgeting can be time consuming. 27. The amount of money you have left over after you've paid your taxes plus all of your necessary living expenses A) Fixed expense. B) Trade off. C) Disposable income. D) Discretionary income. Show Answer Correct Answer: D) Discretionary income. 28. When budgeting, the first categories to consider are those that meet your ..... A) Important expenses. B) Wants. C) Discretionary funds. D) Needs. Show Answer Correct Answer: D) Needs. 29. The money that is left over once all expenses have been paid and is used on whatever you like is called: A) Net Pay. B) Discretionary Income. C) Cost-Benefit Analysis. D) Fixed Expenses. Show Answer Correct Answer: B) Discretionary Income. 30. Income earned, usually based on a percentage of sales is called ..... A) Commission. B) Net worth. C) Wage. D) Net income. Show Answer Correct Answer: A) Commission. ← 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