Income and Expenses

According to Rory's paycheck last week, he earned $800 last month, but before taxes and other deductions were taken out, he earned $1,050. Which amount should be recorded as income in his income and expense statement?

• $800
• $1050

Rory is surprised to learn that there are many other types of income besides the wages he earns in this paycheck every month. Which of the following is an example of another type of earned income?

• Scholarships
• Money from selling his Playstation
• Tax Refund
• Interest earned from savings account

Now that Rory understands how comprehensive income is, he is wondering if he needs to record the $500 scholarship he was awarded from his local community to help pay for his college tuition. If so, in which category of income should it be recorded?

• Earned Income
• Unearned Income
• Received Income from Government Programs

Rory makes it a habit to save $80 every month before using his paycheck to purchase anything else. He isn't sure if his savings should be recorded as an income or an expense on this Income and Expense Statement. Where should he record his savings?

• Earned Income
• Unearned Income
• Expense

Rory understand that taxes are one of the his largest expenses. However, he doesn't understand why expenses doesn't include a "taxes" specific category. Which of the following categories would NOT include taxes in it's overall cost?

• Housing
• Deductions from paycheck
• Food
• Transportation

Which of the following would be included in the Housing category of an Income & Expense Statement?

• Rent or Mortgage Payment
• Utilities
• Groceries
• Renter's or Home Insurance

Which of the following would be included in the Transportation category of an Income & Expense Statement?

• Loan Payment
• Repairs
• Gas
• Eating Out

Which of the following would be included in the Food category of an Income & Expense Statement?

• Groceries
• Snacks
• Kitchen Supplies
• Rent

Which of the following is NOT a way to successfully track your income and expenses?

• Mental Notes
• Smartphone
• Writing it in a Notebook
• Bank Statements

Once you have determined if you have a net gain or net loss, what would be the next step in financial planning that would help make changes to the Income and Expense Statement?

• Statement of Financial Position
• Income and Expense Statement
• Depository Institution
• Spending Plan