PF Ch 4 Budgeting

Front

The two elements to consider in budgeting and planning are your income and your expenses.

Back

True

Front

A set of goals for spending, saving, and investing the money you receive is called a budget.

Back

False

Front

Before you prepare a budget, it is a good idea to keep track of your income and expenses for a month or two.

Back

True

Front

You should always create a monthly budget—weekly or biweekly budgets tend to be inaccurate.

Back

False

Front

In the short-run, fixed costs are easier to change than variable costs.

Back

False

Front

When assets are greater than liabilities, you are said to be solvent.

Back

True

Front

A net worth statement will be useful when you apply for a loan or credit.

Back

True

Front

A court will not require a person to perform an agreed-upon act if it is illegal.

Back

True

Front

You should never sign a contract until you read and understand all its terms.

Back

True

Front

A payee is a person who promises to pay the debt of another person.

Back

False