This quiz works best with JavaScript enabled. Home > Finance > Accounting > Budgeting > Budgeting – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Budgeting Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Find the best definition for the underlined word:An estimation of income and expenditure for a set period of time A) Rough Calculation. B) Total goods. C) Guess. D) Random Number. Show Answer Correct Answer: A) Rough Calculation. 2. Why is using a budget beneficial? A) Helps to keep track of the money you receive. B) Helps to prioritize your spending. C) Helps reach short-and long-term financial goals. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. Which of the following budgets is usually prepared on a "per unit" basis? A) Partial budget. B) Whole farm budget. C) Enterprise budget. D) Cash flow budget. Show Answer Correct Answer: C) Enterprise budget. 4. Is a spending plan for managing money during a given period of time A) Debt. B) Fixed expense. C) Expense. D) Budget. Show Answer Correct Answer: D) Budget. 5. What is the importance of budgeting? A) Make good adjustments. B) The main thing is to make money. C) The importance is a principal object. D) The importance is developing a good Budget. Show Answer Correct Answer: D) The importance is developing a good Budget. 6. To budget with a(n) ....., prioritize expenses from most to least important so your most important expenses are covered first. A) Gross Income. B) Irregular Income. C) Zero-Based Budget. D) Income. Show Answer Correct Answer: B) Irregular Income. 7. This budget is always the first one to be prepared. A) Production. B) Direct materials. C) Direct labor. D) Sales. Show Answer Correct Answer: D) Sales. 8. Which of the following could you do without to save money A) Food. B) Donations. C) Video games. D) Bus ticket. Show Answer Correct Answer: C) Video games. 9. To put money into an account. A) Interest for a cow. B) Deposit. C) Savings for a chicken. D) Withdraw. Show Answer Correct Answer: B) Deposit. 10. A budgeting process which demands each manager to justify his entire budget in detail from beginning is A) Master budgeting. B) Zero base budgeting. C) Annual budgeting. D) None of the above. Show Answer Correct Answer: B) Zero base budgeting. 11. The two basic parts of a budget are ..... and ..... A) Income; Expenses. B) Wants; Needs. C) Equity; Debt. D) Resources; Consumption. Show Answer Correct Answer: A) Income; Expenses. 12. Short term goals are: A) Hard to reach. B) Accomplished in less than a year. C) Personal. D) Categorized by wants and needs. Show Answer Correct Answer: B) Accomplished in less than a year. 13. Three of these items represent services provided by the federal government using taxpayer money. Which one represents a personal expense instead? A) Military protection. B) Medicare and Medicaid. C) Auto insurance. D) NASA space program. Show Answer Correct Answer: C) Auto insurance. 14. "It is performed to ascertain the validity and reliability of information; also to provide an assessment of a system's internal control" .This statement refers to the ..... process of financial administration. A) Planning. B) Accounting. C) Budgeting. D) Auditing. Show Answer Correct Answer: D) Auditing. 15. Steve has a gross annual income of $ 42, 000 and has $ 1, 300 taken out for deductibles. What is his monthly budget for transportation if he puts aside 11% for transportation fees? A) $ 3608.33. B) $ 385. C) $ 373.08. D) $ 3391.66. Show Answer Correct Answer: C) $ 373.08. 16. What are your expenses? A) Money you save. B) Money you spend on things. C) Money you put away for taxes. D) All of these. Show Answer Correct Answer: B) Money you spend on things. 17. What budgeting tip(s) would help you to stay on track financially? A) Find a friend with similar goals and hold each other accountable. B) Put aside fun money in your budget so you're not missing out. C) Only use your closest gas station to fill up gas. D) All of the above. Show Answer Correct Answer: A) Find a friend with similar goals and hold each other accountable. 18. Purchasing a property is complex and a real estate agent helps you to find property that fits your ..... A) Needs. B) Wants. C) Spending plan. D) All of these. Show Answer Correct Answer: D) All of these. 19. Something that people desire to have, that they may, or may not, be able to obtain. A) Needs. B) Opportunity costs. C) Fixed expense. D) Wants. Show Answer Correct Answer: D) Wants. 20. A plastic payment card linked to a financial account and is used for transactions. A) Checking Account. B) Credit Card. C) Debit Card. D) Savings Account. Show Answer Correct Answer: C) Debit Card. 21. This budget shows both the quantity and cost of direct materials to be purchased. A) Materials. B) Production. C) Direct materials. D) Indirect materials. Show Answer Correct Answer: C) Direct materials. 22. The first priority in your budget should be ..... A) Giving. B) Saving. C) Spending. D) Investing. Show Answer Correct Answer: A) Giving. 23. What is a plastic card that you can use to pay for purchases with borrowed money from the bank? A) Debit card. B) Saving card. C) Credit card. D) Spending card. Show Answer Correct Answer: C) Credit card. 24. An unlimited amount of wants but limited money. A) Debt. B) Interest. C) Liability. D) Scarcity. Show Answer Correct Answer: D) Scarcity. 25. The amount of money you take home is called your A) Net Pay. B) Gross Pay. C) Total Pay. D) Available Pay. Show Answer Correct Answer: A) Net Pay. 26. Which of the following is NOT a true statement about partial budgets? A) Allows for hiring custom work. B) Modifies production practice. C) Adopts new technologies. D) Includes resources which cannot change. Show Answer Correct Answer: D) Includes resources which cannot change. 27. FICA stands for ..... A) Federal Insurance Contributions Action. B) Federal Insurance Contributions Act. C) Federal Insurance Coverage for All. D) Financial Insurance Coverage Act. Show Answer Correct Answer: B) Federal Insurance Contributions Act. 28. Who has to pay taxes to the US government? A) Every citizen, regardless of their age or working status. B) Anyone who owns a home or attends a public school. C) No one has to-taxes are a voluntary program. D) Every person or company that earns income in the US. Show Answer Correct Answer: D) Every person or company that earns income in the US. 29. What is the most important bill you have to take care of? A) House. B) Entertainment. C) Car. D) None Of The Above. Show Answer Correct Answer: A) House. 30. What part of SMART is missing? I will play more computer games with my brother this semester. A) Not specific enough. B) Not attainable. C) Not measurable. D) Not time bound. Show Answer Correct Answer: C) Not measurable. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesBudgeting Quiz 1Budgeting Quiz 2Budgeting Quiz 4Budgeting Quiz 5Budgeting Quiz 6Budgeting Quiz 7Budgeting Quiz 8Budgeting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books