PF Test

Front

What is a budget?

Back

A budget is an itemized summary of expected income and expenses for a defined period of time.

Front

What are assets?

Back

Assets refer to personal belongings that have value.

Front

According to the 50/30/20 rule, what percentage should be devoted to savings?

Back

20% of income should be devoted to savings.

Front

What is NOT classified as a spending need?

Back

Movie tickets are not classified as a spending need.

Front

What is an example of a personal asset?

Back

Cash is an example of a personal asset.

Front

What is net worth?

Back

Net worth is the difference between total assets and total liabilities.

Front

What are liabilities?

Back

Liabilities are financial obligations or debts that an individual owes.

Front

What is the purpose of a balance sheet?

Back

A balance sheet provides a snapshot of an individual's financial position at a specific point in time.

Front

What does the term 'equity' refer to?

Back

Equity refers to the ownership value in an asset after deducting liabilities.

Front

What is the significance of tracking expenses?

Back

Tracking expenses helps individuals understand their spending habits and manage their finances effectively.