Chapter 4 Test: Budgeting and Records

Front

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

Back

True

Front

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

Back

True

Front

Only people with considerable wealth need to create a personal record keeping system.

Back

False

Front

The IRS has the legal right to audit your tax returns and supporting records for ___ years from the date of filing.

Back

3

Front

A person who creates and signs the promissory note and agrees to pay it on a certain date is called the

Back

maker

Front

__________ expenses are costs that vary in amount and type, depending on the choices you make.

Back

Variable

Front

Which of the following is considered a liability?
Cash in hand,
Stock investments,
Real estate property,
Outstanding loan

Back

Outstanding loan

Front

What are items of value that a person owns called?

Back

Assets

Front

What is the financial ability to repay a loan with present income known as?

Back

Capacity

Front

When are estimated expenses greater than estimated income?

Back

Cash Deficit