This quiz works best with JavaScript enabled. Home > Finance > Accounting > Budgeting > Budgeting – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Budgeting Quiz 8 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of these is NOT a personal expense? A) Cosmetics. B) Gasoline. C) Wi-fi/Internet. D) Coffee/Tea. Show Answer Correct Answer: B) Gasoline. 2. Which one of these is NOT a necessity in order to survive? A) Sunglasses. B) Water. C) Food. D) Electricity. Show Answer Correct Answer: A) Sunglasses. 3. Which of the following gives a snapshot of the borrower's business at a specific time? A) Statement of ownership equity. B) Net worth statement. C) Net income statement. D) Statement of cash flows. Show Answer Correct Answer: B) Net worth statement. 4. When is the right time to start creating and living by a budget? A) Right now-it's never too early!. B) Once you have a job with an income. C) When you decide it's time to buy a car. D) When you start researching colleges and the costs that come along with it. Show Answer Correct Answer: A) Right now-it's never too early!. 5. Which of the followings is the objectives of advertising? A) Decrease sales. B) Small market share. C) Educate customer on how to use product. D) None of above. Show Answer Correct Answer: C) Educate customer on how to use product. 6. The loss of potential gain from other alternatives when one alternative is chosen. A) Surplus. B) Trade off. C) Opportunity Cost. D) Deficit. Show Answer Correct Answer: C) Opportunity Cost. 7. Gift FROM your grandparents A) Unexpected expense. B) Variable expense. C) Unanticipated income. D) Anticipated income. Show Answer Correct Answer: C) Unanticipated income. 8. What is the best way to secure your money? A) Piggy Bank. B) Bank Account. C) In Your Wallet. D) None Of The Above. Show Answer Correct Answer: B) Bank Account. 9. Taxes and withholdings impact your ....., which is the amount of money you take home on your paycheck. A) Discretionary Expense. B) Cash-Flow Statement. C) Net Income. D) Budget. Show Answer Correct Answer: C) Net Income. 10. Saving provides money for: A) Emergency expenses. B) Unplanned expenses next year. C) Expenses in five years. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. Which of the following is NOT a reason for budgeting? A) Provides company or personal financial stability. B) Generates a map of financial practices. C) Guides efficient business decisions. D) Allows companies to spend as much money as they want. Show Answer Correct Answer: D) Allows companies to spend as much money as they want. 12. Money available to spend on goods and services that are not essential. A) Discipline income. B) On-hand income. C) Available income. D) Discretionary income. Show Answer Correct Answer: D) Discretionary income. 13. Water, Cable, Electricity, Internet and Cell Phone are all examples of what? A) Luxuries. B) Wants. C) Optional. D) Utilities. Show Answer Correct Answer: D) Utilities. 14. What is a consequence of overdrawing your checking account? A) Bounced check fee from a store. B) Overdraft fee from your bank. C) Stress from money mismanagement. D) All are consequences. Show Answer Correct Answer: D) All are consequences. 15. The granting of a loan and the creation of debt. A) Debit. B) Credit. C) Interest. D) Budget. Show Answer Correct Answer: B) Credit. 16. Build wealth and give A) Third Foundation. B) Fourth Foundation. C) Second Foundation. D) Fifth Foundation. Show Answer Correct Answer: D) Fifth Foundation. 17. Which amount do you need to consider when you are budgeting? A) Deductions. B) Net pay. C) Gross pay. D) Taxes. Show Answer Correct Answer: B) Net pay. 18. Which of the following would be the best example of a long-term goal? A) Completing college within the next six months. B) Saving for retirement. C) Buying a used car. D) Budgeting for an annual vacation. Show Answer Correct Answer: B) Saving for retirement. 19. Which budget item will most likely take up the largest percentage of your income at 25-30%? A) Housing. B) Saving/investing. C) Transportation. D) Groceries. Show Answer Correct Answer: A) Housing. 20. When setting a budget, you should consider ..... A) Financial goals, current expenses, and income. B) Mostly income. C) Creative ways to spend your money. D) Mostly your goals. Show Answer Correct Answer: A) Financial goals, current expenses, and income. 21. If Bob's car payment is $ 172 per month, his annual budget amount for car payments would be ..... A) $ 986.00. B) $ 2, 064.00. C) $ 1, 720.00. D) $ 1, 064.00. Show Answer Correct Answer: B) $ 2, 064.00. 22. When should you open your first checking account? A) Between 5-8 years old. B) Between 13-15 years old. C) Between 18-21 years old. D) None of the above. Show Answer Correct Answer: B) Between 13-15 years old. 23. Groceries for the week A) Expected expense. B) Variable expense. C) Fixed expense. D) Unexpected expense. Show Answer Correct Answer: B) Variable expense. 24. People who spend more than they save each month will A) Never be able to save any money. B) Never be at risk of going into debt. C) Always have what they want and need. D) None of above. Show Answer Correct Answer: A) Never be able to save any money. 25. Comparison shopping for a car is necessary because A) It is a requirement to qualify for car insurance. B) Each dealer sells cars with different colors. C) Lenders want to be sure consumers get the best price. D) The price for the car can vary a great deal. Show Answer Correct Answer: D) The price for the car can vary a great deal. 26. Daycare can be very expensive! My friend pays $ 972 every month for her 3 year old daughter.This is considered a ..... A) Income. B) Discretionary Expense. C) Variable Expense. D) Fixed Expense. Show Answer Correct Answer: D) Fixed Expense. 27. A retirement fund A) Goal chart. B) Consolidate. C) Emergency fund. D) Open-ended goal. Show Answer Correct Answer: D) Open-ended goal. 28. Budgeting is the process of creating, maintaining, or analyzing a budget in order to reduce ..... and improve ..... A) Costs, Strategy. B) Outflows, Inflows. C) Profits, Strategy. D) Risk, Decision Making. Show Answer Correct Answer: D) Risk, Decision Making. 29. Expenses that can change depending on your use of products or services A) Fixed expense. B) Opportunity Cost. C) Variable Expense. D) Trade off. Show Answer Correct Answer: C) Variable Expense. 30. What is it called when you make money on the percentage of the total sales you make? A) Overtime. B) Irregular income. C) Gross income. D) Commission. Show Answer Correct Answer: D) Commission. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesBudgeting Quiz 1Budgeting Quiz 2Budgeting Quiz 3Budgeting Quiz 4Budgeting Quiz 5Budgeting Quiz 6Budgeting Quiz 7Budgeting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books