PF - Ch. 4 Budgeting Review

Lunches, medical bills, personal care items, and clothing are all examples of

• fixed expenses

• variable expenses

• income

• investments

A house payment and utilities are examples of

• variable expenses

• income

• fixed expenses

• investments

The IRS can audit your tax returns for a period of ______ year(s), except in the case of fraud, where there is no time limit.

• 10

• 1

• 3

• 5

Which of these is a liability?

• car

• savings account

• stereo

• car loan

When you assets are greater than your liabilities, you are said to be

• rich

• solvent

• insolvent

• responsible

A major reason for financial planning is to prevent careless spending.

• True

• False

Money you have to spend as you wish (after all you bills are paid for) is known as _______.

• disposable income

• income

• fixed expenses

• variable expenses

A(n) __________ is an organized plan whereby you match your expected income with expenses and savings.

• budget

• asset

• financial plan

• net worth statement

Expenses that remain constant and cannot be easily changed or removed from a budget are called ___ expenses.

• variable

• fixed

Expenses that may change according to needs and short-term goals are called ______ expenses.

• variable

• fixed