Basic Accounting

Budgeting is the _______________ based on a determined structure.

• Process of accomplishing goals

• Development of regulations

• Decision to make judgments

• Allocation of monetary funds

Budgeting provides a guide for efficient business decisions.

• True

• False

The two basic parts of a budget are __________ and ___________.

• Wants; Needs

• Equity; Debt

• Income; Expenses

• Resources; Consumption

Which of the following is NOT a step involved in creating a budget?

• Gather financial records

• Track spending

• Expand earning avenues

• Balance the budget

Rent is an example of a _________ expenses.

• Fixed

• Variable

Gross income is income after the cost of goods and taxes are deducted.

• True

• False

Which of the following is NOT an example of an asset?

• Children

• Cash

• Equipment

• Buildings

Which of the following is NOT an example of a liability?

• Cash

• Equipment loans

• Charge accounts

• Rental fees

The presentation recommends updating and modifying your budget how often?

• Annually or quarterly

• Monthly or weekly

• Daily or whenever making purchases

• Never

Net worth = assets - liabilities

• True

• False