PF Ch 4

The primary cash inflow for most adults is their ________.

• interest earned from savings accounts
• salary
• rent
• insurance

Money spent on a vacation or a birthday is an example of a(n) ________ expense that will not show up in a typical month's budget.

• regular
• unpredictable
• expected but irregular
• unexpected by predictable

A good budget will force you to ________ to take advantage of unexpected opportunities.

• rely on credit cards
• reject long-term financing
• set aside money
• increase your income

A ________ can help you save money for major purchases, unexpected expenses, and unexpected opportunities.

• personal cash flow statement
• budget
• liability
• personal balance sheet

Which of the following would you most likely use to assess the accuracy of your budget?

• A list of personal financial goals
• A personal balance sheet
• An expense journal
• A net worth analysis

The difference between what you forecast to happen and what actually happened is referred to as ________.

• forecast error
• forecast liability
• cash outflow
• cash inflow

A cash flow statement is a forecast of future cash inflows and outflows.

• True
• False

In a budget, money you receive from a scholarship would be calculated as part of your income

• True
• False

Your budget should account for expected but irregular expenses, such as vacations and birthdays.

• True
• False

The most effective and easy-to-follow budgets do not vary from month to month.

• True
• False