Personal Finance Chapter 8

When preparing a budget, you need to focus mostly on your

• gross income

• disposable income

• taxable income

• net income

In a balanced budget,

• gross income = disposable income

• expenses - savings = gross income

• expenses = saving

• expenses + savings = earnings + borrowing

Which of the following is a variable expense?

• utility bill

• rent

• grocery bill

• car loan

Which of the following would be considered an asset?

• a credit card account

• a checking account

• a car loan

• all of the above

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

• 2

• 3

• 5

• 10

When one person makes an offer and another person changes it, the second person is

• committing fraud

• providing consideration

• entering into an agreement

• making a counteroffer

Which of the following contracts must be signed to be legally binding?

• a contract involving the sale of land

• an agreement to purchase and Ipad

• a promise that you will feed your neighbor's cat over the weekend

• all of the above

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

• co-signer

• maker

• payee

• negotiator

A computer program that organizes data in columns and rows and can perform calculations using the data is called a

• database

• spreadsheet

• scheduler

• calculator

Something of value exchanged for something else of value is called

• capacity

• consideration

• legal

• contract