Ch. 2 Budgeting Pretest

What is a budget?

• A written plan for giving, saving, and spending
• Money received for work
• Income that comes in at different amounts or at different times, or both
• Expense that remains the same from month to month

What is commission?

• Expense that remains the same from month to month
• Expense that varies in dollar amount from month to month
• Money received for work, as a gift, or through investments
• Earnings based on a percentage of the sales made

What is a fixed expense?

• Money received for work, as a gift, or through investments
• Income that comes in at different amounts or at different times, or both
• Expense that remains the same from month to month
• Expense that varies in dollar amount from month to month

What is a discretionary expense?

• Expense that remains the same from month to month
• Money received for work, as a gift, or through investments
• Expense that varies in dollar amount from month to month
• Expense for things you don’t need

What is a cash-flow statement?

• A record that summarizes all of the income and outgo (spending) over a certain time period
• Expense that remains the same from month to month
• Money received for work, as a gift, or through investments
• Income that comes in at different amounts or at different times, or both

What is irregular income?

• Expense that varies in dollar amount from month to month
• Money received for work, as a gift, or through investments
• Income that comes in at different amounts or at different times, or both
• Expense that remains the same from month to month

What is net income?

• Expense that varies in dollar amount from month to month
• Income that comes in at different amounts or at different times, or both
• Expense that remains the same from month to month
• What a person earns after payroll taxes and other deductions are taken out

What is a zero-based budget?

• Expense that remains the same from month to month
• Income that comes in at different amounts or at different times, or both
• Money received for work, as a gift, or through investments
• A cash-flow plan that assigns an expense to every dollar of your income

What is an intermittent expense?

• Expense that remains the same from month to month
• Income that comes in at different amounts or at different times, or both
• Expense that occurs at various times throughout the year and tends to be in large, lump sums
• Money received for work, as a gift, or through investments

What is gross income?

• Income that comes in at different amounts or at different times, or both
• Expense that varies in dollar amount from month to month
• Expense that remains the same from month to month
• The amount you earn before taxes and other payroll deductions