Unit 5 (Chapter 4) Budget Review (SPF & PF)

A personal net worth is calculated by...

• total assets + total liabilities

• total assets - total liabilities

• total liabilities - total assets

• total assets x total liabilities

Examples of fixed expenses include ...

• Rent

• gas

• groceries

• entertainment

Which of the following would typically be considered a need (rather than a want)?

• A new car

• housing

• vacation trip

• several pairs of shoes

The amount of money a person has to spend after needs are met is called

• net income

• profit

• discretionary income

• none of the above

Which of the following would be considered a cash inflow?

• net pay

• rent

• savings

• expenses

Which of the following is an asset?

• credit card balance

• net worth

• savings account

• car loan

The "VALUE" of what you give up (when you make a choice) is the

• tradeoff

• asset

• net worth

• opportunity cost

Items for which you must spend money are called

• assets

• Income

• net worth

• expenses

Differences between planned income or spending and actual income or spending are called

• profits

• variances

• income

• expenses

The amount you budgeted to spend on food for June was $500.  The amount you actually spent was $455, resulting in a

• $45 unfavorable variance

• $55 favorable variance

• $45 favorable variance

• $55 unfavorable variance