Pre-Test DR Budgeting

Which of the following is a consequence of overdrawing your checking account?

• Bounced check fee from the store

• Stress from money mismanagement

• Overdraft fee from your bank

• All of the above

Doing a budget does not

• Show if you are overspending in an area

• make overspending more likely

• remove guiltand shame sometimes associated with a purchase

• make your money go further

Your monthly budget should include

• variable expenses

• discretionary expenses

• fixed expenses

• all of the above

Which of the following statements is false?

• A cash flow statement summarizes all of the incomes and outgo (spending) over a certain time period

• a budget is a written plan for saving and spending

• a budget is meant to summarize the saving and spending that has taken place over the past year

• the cash flow statement is reflective of what has already taken place

Which of the following is something that a typical millionaire would do?

• Lease a new car

• spend less money than he or she makes

• replace things that are not broken

• carry debt

A written a budget, if followed, remove ____________ from your finances.

• Overspending

• Guilt

• Management by crisis

• All of the above

The following are guidelines for budgeting with an irregular income except:

• prioritize the list in order of importance

• Make a list of all of your expenses for the month ahead

• Budeting with an irregular income is no different than bugeting with a regular income

• When your check comes in, spend your money all the way down the list.

The zero-based budget is the best method of budgeting because

• The type of budget is less complicated than other types of budgets

• A zero-based budget allows less money for wants

• Sticking to a zero-based budget requires less discipline

• The zero-based budget ensures that every dollar you make is assigned a specific purpose

Which of the following is not a record-keepingfeature you could expenect from your bank?

• a reconciliation sheet

• an account register

• customer service reconciles your account for you

• A monthly account statement

Which of the following account records would have the most current balance?

• Account balance statement from the ATM

• Your own account register

• Your monthly bank statement

• All of these records will have accurate account balances