Chapter 4 Exam

__________ income is the money you have left over to spend or save after paying taxes and deductions (required and optional).

• Variable

• Negotiable

• Disposable

• Fixed

A __________ is a spending and saving plan based on expected income and expenses.

• cash deficit

• cash surplus

• liability

• budget

All of the following are types of personal records to keep except: *

• income and expense records

• net worth statement

• personal property inventory

• All of the above are types of personal records that should be kept.

The __________ requires that some agreements must be in writing to be enforceable. This law protects the persons from fraudulent conduct (intentional deceit).

• contract

• warranty

• statute of frauds

• acceptance

__________, such as checks and promissory notes, are promises to pay a specified sum to the holder.

• Negotiable instruments

• Statute of frauds

• Warranties

• Enforceable contracts

If expenses plus savings exceed income, adjust your spending or savings to balance your budget, or find a new source of income. ​

• True

• False

• Japan

• England

Fixed expenses are costs that change monthly, while variable expenses do not change depending on choices made.​

• True

• False

• Italy

• Philippines

Contracts are legally binding agreements. They can be express (stated in words, either orally or in writing) or implied (created by actions of the parties).​

• True

• False

• Mexico

• Australia

It is not your responsibility to read contracts carefully, fill in all blanks clearly, confirm that all relevant information is included, and understand your commitments before you sign.​

• True

• False

• Thailand

• France

Good filing systems can be paper or electronic. Spreadsheet and database programs can facilitate budgeting and record keeping.

• True

• False

• Cats

• dogs