Business Essentials - Chapter 16

A tax is a charge imposed by federal, state, and local governments to finance public services.

• True

• False

A record of your assets and liabilities is called a cash balance statement.

• True

• False

A budget can help you buy wisely and avoid credit problems.

• True

• False

An expense is the amount of money you plan to use for a certain budget category.

• True

• False

A difference between actual spending and budgeted spending is called a budget variance.

• True

• False

Using your checkbook as a budgeting system does not serve the purpose of planning for spending.

• True

• False

A gift tax is based on the value of a person’s property at death

• True

• False

A tax deduction is an amount that increases taxable income

• True

• False

Your financial needs will change as you move through your life.

• True

• False

Estate planning is the process of purchasing a large mansion and surrounding property

• True

• False