This quiz works best with JavaScript enabled. Home > Finance > Accounting > Budgeting > Budgeting – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Budgeting Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the most common moving-in cost for apartment? A) A Down Payment. B) A Security Deposit. C) Real Estate Taxes. D) Building Insurance. Show Answer Correct Answer: B) A Security Deposit. 2. Neutral is where ..... A) Net government spending is reduced either through higher taxation revenue / through reduced government spending / both. B) Net increase in government spending where government spending is more than tax revenue. C) Government spending is equal to tax revenue. D) None of above. Show Answer Correct Answer: C) Government spending is equal to tax revenue. 3. Which of the following is NOT a true statement concerning budgets? A) Are a specific plan on how to spend and save money. B) Are numerical records which do not express spending results over a specific time period. C) Are a blueprint. D) Are used as a planning guide. Show Answer Correct Answer: B) Are numerical records which do not express spending results over a specific time period. 4. What kind of money counts as income? A) Only the money you make at your job. B) Money in your savings account. C) All money that you receive, including money from your job and gifts like birthday money. D) Only money deposited into your bank account. Show Answer Correct Answer: C) All money that you receive, including money from your job and gifts like birthday money. 5. Tony Michael budgeted $ 4, 550 to buy a used car for his son, Trey. He spent $ 6, 788. How much more or less is the amount spent than the amount budgeted? A) $ 2, 238 more. B) $ 2, 338 less. C) $ 2, 338 more. D) $ 2, 238 less. Show Answer Correct Answer: C) $ 2, 338 more. 6. The full amount of our salary before taxes and deductions is also known as our: A) Entire pay. B) Take home pay. C) Gross pay. D) None of these. Show Answer Correct Answer: C) Gross pay. 7. An amount of money spent is a/an A) Expenditure. B) Budget. C) Income. D) Estimate. Show Answer Correct Answer: A) Expenditure. 8. Assets-Liabilities = A) Personal inventory. B) Share. C) Net Worth. D) Insolvent. Show Answer Correct Answer: C) Net Worth. 9. What is the last step in creating a budget? A) Determine your financial situation. B) Set short & long-term goals. C) Estimate expenses. D) Balance & adjust your budget. Show Answer Correct Answer: D) Balance & adjust your budget. 10. ..... is commonly considered a flexible expense. A) Rent. B) Home insurance. C) Entertainment. D) A mortgage payment. Show Answer Correct Answer: C) Entertainment. 11. In what category of a typical family budget do people spend most of their money? A) Food. B) Transportation. C) Entertainment. D) Housing. Show Answer Correct Answer: D) Housing. 12. The difference between the predicted and actual budgeted figures is known as: A) Adverse variance. B) Variance. C) Profit. D) Favorable variance. Show Answer Correct Answer: B) Variance. 13. The person renting a property. A) Landlord. B) Tenant. C) Rental agreement. D) Rent. Show Answer Correct Answer: B) Tenant. 14. In your budgeting process, when should you look at recurring expenses? A) Before looking at your needs. B) After your wants but before you needs. C) After considering entertainment expenses. D) Before reviewing your wants. Show Answer Correct Answer: D) Before reviewing your wants. 15. Which of the following is NOT a good way to track your spending? A) In your head. B) Notebook and pencil. C) Envelope method. D) Online software or app. Show Answer Correct Answer: A) In your head. 16. Money that is earned through a job. A) Interest. B) Income. C) Expense. D) None of above. Show Answer Correct Answer: B) Income. 17. Purchasing power decreases and it costs more money to buy goods when there is A) Deflation. B) Inflation. C) A bear market. D) A bull market. Show Answer Correct Answer: B) Inflation. 18. In preparing quarterly budget estimates, who should be responsible for the cash budget? A) Production manager. B) General manager. C) Finance manager. D) Sales manager. Show Answer Correct Answer: C) Finance manager. 19. What type of insurance coverage is considered specialized? A) Floods and earthquakes. B) Stolen or destroyed property. C) Loss of Use. D) Property Damage from a fire. Show Answer Correct Answer: A) Floods and earthquakes. 20. Which one is a fixed (same amount, same time) payment? A) Food. B) Mortgage. C) Petrol. D) Power. Show Answer Correct Answer: B) Mortgage. 21. A safe place that holds your money for when you need it A) Bank. B) Checkbook. C) Deposit. D) Budget. Show Answer Correct Answer: A) Bank. 22. Which of the following defines budgeting? A) The amount of income received before the cost of goods and taxes. B) The allocation of monetary funds based on a determined structure. C) The amount of income after cost of goods and taxes are deducted. D) Assets minus liabilities. Show Answer Correct Answer: B) The allocation of monetary funds based on a determined structure. 23. Other names for Opportunity Cost A) Trade off. B) Limited. C) Unlimited. D) Resources. Show Answer Correct Answer: A) Trade off. 24. Percentage of Americans living paycheck to paycheck: A) 70. B) 25. C) 40. D) 50. Show Answer Correct Answer: A) 70. 25. When our expected income is greater than our expenses we have a ..... A) Budget deficit. B) Budget surplus. C) Even budget. D) Budget. Show Answer Correct Answer: B) Budget surplus. 26. The final phase of the budgeting is to: A) Set personal and financial goals. B) Compare your budget to what you have actually spent. C) Review financial progress. D) Monitor current spending patterns. Show Answer Correct Answer: C) Review financial progress. 27. You can prepare for unexpected expenses by regularly putting money into a(n) ..... A) Saving fund. B) Emergency fund. C) Estimated fund. D) Variable fund. Show Answer Correct Answer: B) Emergency fund. 28. Take home pay or ..... is the money left after taxes and deductions have been taken out. A) Gross worth. B) Net pay. C) Gross pay. D) Net worth. Show Answer Correct Answer: B) Net pay. 29. What are the 2 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. 30. A loan for the purchase of real estate. A) Mortgage. B) Closing costs. C) Down payment. D) Equity. Show Answer Correct Answer: A) Mortgage. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesBudgeting Quiz 1Budgeting Quiz 3Budgeting Quiz 4Budgeting Quiz 5Budgeting Quiz 6Budgeting Quiz 7Budgeting Quiz 8Budgeting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books