This quiz works best with JavaScript enabled. Home > Finance > Accounting > Budgeting > Budgeting – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Budgeting Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The amount of income remaining after you've paid all of your federal, state and local taxes A) Fixed expense. B) Disposable income. C) Personal income. D) Discretionary income. Show Answer Correct Answer: B) Disposable income. 2. Which of the following items should always be included in a cash flow statement? A) Income from wages. B) Savngs. C) Fixed expenses. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. Automatically routing your specified savings contribution from each paycheck at the time it is received. A) Pay yourself first. B) Surplus. C) Personal income. D) Wants. Show Answer Correct Answer: A) Pay yourself first. 4. Forbearance includes: A) Subsidized Stafford Loans do not accrue interest. B) All loans accrue interest. C) Unsubsidized Stafford loans, PLUS loans, and consolidation loans, do accrue interest. D) None of these. Show Answer Correct Answer: B) All loans accrue interest. 5. Ryan would like to save 15% of his take-home pay towards retirement. How much should he save each month if he makes $ 5, 000 each month? A) $ 1125. B) $ 75. C) $ 750. D) $ 75, 000. Show Answer Correct Answer: C) $ 750. 6. What allows you to have extra cash when you need it? A) Spending. B) Savings. C) Income. D) Budget. Show Answer Correct Answer: B) Savings. 7. Occurs when you spend more money than you actually have A) Withdrawal. B) Goal. C) Overdraft. D) Income. Show Answer Correct Answer: C) Overdraft. 8. Kylie plans on using the 50/30/20 rule for budgeting. How will she split her budget? A) 50% needs, 30% wants, 20% savings. B) $ 50 needs, $ 30 wants, $ 20 savings. C) 50% budget, 30% needs, 20% wants. D) 50% saving, 30% needs, 20% wants. Show Answer Correct Answer: A) 50% needs, 30% wants, 20% savings. 9. Which of the following is NOT a component of a budget? A) Giving. B) Saving. C) Credit score. D) Income. Show Answer Correct Answer: C) Credit score. 10. Assets may include which of the following? A) Equipment. B) Feed store bill. C) Borrowed cash. D) Equipment loans. Show Answer Correct Answer: A) Equipment. 11. You are developing a savings plan and using short-, medium-and long-term goals to motivate you. Which of the following might you pick as the most long-term goal? A) Saving to buy a car. B) Saving for a down payment on a home. C) Saving for retirement. D) Saving to go on vacation. Show Answer Correct Answer: C) Saving for retirement. 12. The first step involved in preparing a master budget is A) Preparing a general operating budget. B) Preparing s forecasted statement of financial position. C) Preparing a forecasted income statement. D) Preparing s forecasted statement of financial position. Show Answer Correct Answer: A) Preparing a general operating budget. 13. Zero-based bugeting starts from a " ..... ". A) Zero points. B) Zero basic. C) Zero needs. D) Zero base. Show Answer Correct Answer: D) Zero base. 14. Cost of catering based on number of participants will be consideredas ..... cost. A) Joint. B) Fixed. C) Variable. D) Direct. Show Answer Correct Answer: C) Variable. 15. What is NOT one of the benefits of budgeting A) Creating early warning system. B) Planning ahead. C) Motivating personnel. D) Knowing the future will always be correct. Show Answer Correct Answer: D) Knowing the future will always be correct. 16. Pretty much everything you need, want or do requires what A) Budget. B) Needs. C) Money. D) Time. Show Answer Correct Answer: C) Money. 17. To make effective use of a budget, you must periodically compare budgeted costs to ..... costs. A) Fixed. B) Variable. C) Actual. D) Direct. Show Answer Correct Answer: C) Actual. 18. Which SMART Goal component is the following:Austin will save $ 600. A) A. B) R. C) M. D) S. Show Answer Correct Answer: C) M. 19. The computer software that can most effectively help us plan our income and spending is [Think of the assignment in which YOU created a budget]: A) Word. B) PowerPoint. C) Google Sheets. D) Acrobat. Show Answer Correct Answer: C) Google Sheets. 20. If transportation costs include a car payment and gas, and Ryan's car payment is $ 350 and he pays $ 100 for gas, what percentage is Ryan paying for transportation costs each month if his take home pay is $ 9, 000? A) 28 %. B) 3.8 %. C) 1.1 %. D) 5 %. Show Answer Correct Answer: D) 5 %. 21. Which of these is the correct way to calculate savings A) Expenses-income=saving. B) Income-savings=savings. C) Income-expenses=savings. D) Savings-income=expenses. Show Answer Correct Answer: C) Income-expenses=savings. 22. Which of the following is an example of a "life change" that would effect your budget? A) Marriage. B) Children. C) Change in job. D) All of these. Show Answer Correct Answer: D) All of these. 23. Rent, mortgage payments, tuition and insurance payments are all examples of: A) Discretionary expenses. B) Fixed expenses. C) Variable expenses. D) Periodic expenses. Show Answer Correct Answer: B) Fixed expenses. 24. A(n) ..... is a financial obligation that must be paid such as a home or car loan. A) Asset. B) Expense. C) Income. D) Liability. Show Answer Correct Answer: D) Liability. 25. Which of the following is NOT an example of an asset? A) Cash. B) Children. C) Equipment. D) Buildings. Show Answer Correct Answer: B) Children. 26. One of the keys to effective budgeting is ..... A) Know the level of financial in the company. B) Keep investigate the previous budget. C) Assign responsbility. D) Review the history of events. Show Answer Correct Answer: A) Know the level of financial in the company. 27. How many categories should you have in your budget? A) At least 3. B) 15 or more. C) No limit; use as many as you need to keep your budget accurate!. D) No more than 10. Show Answer Correct Answer: C) No limit; use as many as you need to keep your budget accurate!. 28. At the beginning of Pers. Finance, we learned about S-M-A-R-T goals when writing your goals. Which SMART Goal component is the following:Austin will save money for the next two years. A) R. B) A. C) M. D) T. Show Answer Correct Answer: D) T. 29. A social insurance program that extends health coverage to almost all Americans age 65 and older. A) Social Society. B) Medical. C) Medicare. D) Social Security. Show Answer Correct Answer: C) Medicare. 30. How long will it take Hines to save up for the concert? A) 5 weeks. B) 3 weeks. C) 4 weeks. D) She wont be able to because she is running a deficit. Show Answer Correct Answer: D) She wont be able to because she is running a deficit. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesBudgeting Quiz 1Budgeting Quiz 2Budgeting Quiz 3Budgeting Quiz 5Budgeting Quiz 6Budgeting Quiz 7Budgeting Quiz 8Budgeting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books