This quiz works best with JavaScript enabled. Home > Finance > Accounting > Budgeting > Budgeting – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Budgeting Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not part of an effective budget preparation process? A) Estimate expenses and savings. B) Create a budget worksheet. C) Enter most expenses as "miscellaneous". D) Estimate income. Show Answer Correct Answer: C) Enter most expenses as "miscellaneous". 2. Something you identify and work on to achieve A) Wants. B) Goal. C) Needs. D) Money. Show Answer Correct Answer: B) Goal. 3. What's your biggest wealth-building tool? A) Income. B) Inheritance. C) Investments. D) Savings account. Show Answer Correct Answer: A) Income. 4. The amount of earnings made over one month, after deductions, in known as: A) Net monthly income. B) Gross monthly income. C) Total annual income. D) Gross annual income. Show Answer Correct Answer: A) Net monthly income. 5. A cash flow statement is a summary that shows the total ..... and spending for a given period of time. A) Income. B) Assets. C) Revenue. D) Liabilities. Show Answer Correct Answer: A) Income. 6. The use of budgets to control a firm's activities is called: A) Budget planning. B) Budgetary control. C) Master budget allocation. D) Budget costing. Show Answer Correct Answer: B) Budgetary control. 7. A budget is 'accepted' by managers when they: A) Receive the budget in writing. B) Are consulted by top management. C) Agree to it verbally. D) Relates it to their own personal objectives. Show Answer Correct Answer: B) Are consulted by top management. 8. Complete this sentence:The federal government budgets its tax money on three large buckets of expenses ..... mandatory spending, discretionary spending, and ..... A) Free programming. B) Budget funds. C) Interest on debt. D) The Constitution. Show Answer Correct Answer: C) Interest on debt. 9. The envelope method, notebook and pencil, and online software are all methods of ..... A) Planning for your future. B) Understanding your current expenses. C) Estimating your unexpected expenses. D) Tracking your spending. Show Answer Correct Answer: D) Tracking your spending. 10. An example of a need is: A) Adequate shelter. B) An unused vehicle. C) Brand name shoes. D) All of the above. Show Answer Correct Answer: A) Adequate shelter. 11. Which of the following account records would have the most current balance? A) Account balance statement from the ATM. B) Your own account register. C) Your monthly bank statement. D) All of these records will have accurate account balances. Show Answer Correct Answer: B) Your own account register. 12. The Financial Peace beginner steps A) The Five Foundations. B) Personal Finance. C) The First Foundation. D) Budget. Show Answer Correct Answer: A) The Five Foundations. 13. Choose the example that is a clearly written financial goal. A) Invest in a 401k for retirement. B) Save money for college for the next four years. C) Establish an emergency fund of $ 2, 000 in 5 months. D) Pay off credit card bills for the next 6 months. Show Answer Correct Answer: C) Establish an emergency fund of $ 2, 000 in 5 months. 14. The best way to budget is ..... A) Creating a spreadsheet. B) By using a digital app. C) The way that works best for you. D) On paper. Show Answer Correct Answer: C) The way that works best for you. 15. How is net worth calculated? A) Net worth = liabilities + assets. B) Net worth = liabilities-assets. C) Net worth = assets-liabilities. D) Net worth = net income-gross income. Show Answer Correct Answer: C) Net worth = assets-liabilities. 16. Which of the following is NOT a step involved in creating a budget? A) Gather financial records. B) Track spending. C) Expand earning avenues. D) Balance the budget. Show Answer Correct Answer: C) Expand earning avenues. 17. Expenses that vary from month to month. Example:car repairs, entertainment, and medical A) Regular. B) Variable. C) Usual. D) Fixed. Show Answer Correct Answer: B) Variable. 18. When our expected income is greater than expected we have a ..... A) Budget deficit. B) Budget surplus. C) Budget. D) None of above. Show Answer Correct Answer: B) Budget surplus. 19. A monthly plan for how you are going to save and spend your income. A) Net Worth. B) The Five Foundations. C) Expense. D) Budget. Show Answer Correct Answer: D) Budget. 20. A federally recognized, tax-exempt organization such as a church, hospital, charity, or school that serves the public in some capacity. A) Nonprofit Organization. B) Scarcity. C) Investments. D) Fifth Foundation. Show Answer Correct Answer: A) Nonprofit Organization. 21. What is a tool to keep track of how much money you spend and how much money you save? A) Income. B) Savings. C) Spending. D) Budget. Show Answer Correct Answer: D) Budget. 22. Budget is the ..... plan to control the future operations and results. A) Course of action. B) Projected. C) Quantified. D) Financial. Show Answer Correct Answer: D) Financial. 23. What percentage is recommended for savings (separate from emergency fund and retirement)? A) 10%. B) 5%. C) 20%. D) 15%. Show Answer Correct Answer: A) 10%. 24. Which of the following most likely represents a fixed expense? A) An Auto Insurance Bill. B) Clothing Shopping. C) An Electric Bill. D) An Educational Expense. Show Answer Correct Answer: A) An Auto Insurance Bill. 25. Things necessary to live A) Goals. B) Money. C) Wants. D) Needs. Show Answer Correct Answer: D) Needs. 26. What was the real median family income in Indiana for 2019? A) $ 155, 333. B) $ 99, 556. C) $ 73, 876. D) $ 50, 100. Show Answer Correct Answer: C) $ 73, 876. 27. Plan for accomplishment in over a year or more A) Long term goal. B) Medium term goal. C) Short term goal. D) Immediate goal. Show Answer Correct Answer: A) Long term goal. 28. Someone breaks into your apartment and steals your iPad. A) Liability Insurance. B) Comprehensive Insurance. C) Renters Insurance. D) Homeowners Insurance. Show Answer Correct Answer: C) Renters Insurance. 29. Although the majority of Americans think budgeting is important, about of Americans actually use a budget. A) 75. B) 35. C) 23. D) 50. Show Answer Correct Answer: B) 35. 30. Which monthly expense is more of a "want" than a "need" ? A) Lunch costs. B) Cell phone bill. C) Video games. D) School supplies. Show Answer Correct Answer: C) Video games. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesBudgeting Quiz 1Budgeting Quiz 2Budgeting Quiz 3Budgeting Quiz 4Budgeting Quiz 5Budgeting Quiz 7Budgeting Quiz 8Budgeting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books