Financial Literacy Review

What is the amount of money you have to spend?

• Cash Inflow

• Cash Outflow

• Net Worth

• Balance Sheet

What is the amount of money that is spent on various living expenses called?

• Cash Inflow

• Net Worth

• Balance Sheet

• Cash Outflow

Take-Home Pay is another name for what?

• Gross Pay

• Net Pay

• Cash Flow

• Liabilities

What is the Net Worth equation?

• Assets + Liabilities = Net Worth

• Assets / Liabilities = Net Worth

• Assets - Liabilities = Net Worth

• Assets x Liabilities = Net Worth

Calculate the Net Worth:

Assets = $57,200

Liabilities = $27,000

• $84,200

• Not enough information to calculate

• $57,200

• $30,200

Which of the following is NOT a main purpose of a budget

• To make sure you are living within your income

• Achieve financial goals

• Plan for financial emergencies

• Keep you from buying the things you want

Which expenses occur on a regular basis for the same amount each time?

• Fixed

• Variable

• Relative

• Incremental

Which expense differs each time and may not be easy to estimate?

• Fixed

• Variable

• Relative

• Incremental

This budget format requires each dollar to have a place in your budget (every dollar that goes in, goes out)

• Incremental

• Activity-Based

• Value Proportion

• Zero-Based

What is it called when your planned spending is GREATER THAN your actual spending?

• Budget Equilibrium

• Budget Realism

• Budget Surplus

• Budget Deficit