PFIN Final Prep

When creating a budget, what are the two main items you need?

• Income, fees

• Tips, groceries

• Income, expenses

• Profit, losses

An expense that can change over time is called a

• fixed expense

• variable expense

When something loses its value as it gets older, it is called

• appreciation

• depreciation

• rotten

• loss

When paying a bill, the grace period is:

• the time after the payment is due where you won't pay an additional fee

• the time when you pay extra on the bill

• when you don't have to pay your bill at all

• usually only for nice people

Your credit limit gets increased the more you use your credit card.

• True

• False

Credit reports when evaluating your credit score use all of the following items EXCEPT:

• Past debt

• Payment history

• Length of credit

• Your income

An outstanding payment on your bank reconciliation

• should only be looked for the first month

• is an excellent payment

• means the check has not been received by the bank

• will not affect your check register balance

Debit cards can be used to make credit card purchases.

• True

• False

Another name for deductible is:

• premium

• coverage

• co-pay

• credit

A stop-order payment order is a request that a bank or financial institution not cash a particular check.

• True

• False