Budget Basics Quiz

What is the primary purpose of creating a budget?

• To track daily expenses

• To plan for future financial goals

• To calculate taxes

• To determine credit score

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Which type of budget focuses on income and expenses over a specific period, usually a year?

• Capital budget

• Operating budget

• Cash flow budget

• Zero-based budget

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What is the first step in the budgeting process?

• Monitoring and reviewing the budget

• Setting financial goals

• Allocating resources

• Analyzing budget variances

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Which of the following is a common tool used for budgeting?

• Microsoft Word

• Google Sheets

• Adobe Photoshop

• AutoCAD

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What does budget variance analysis involve?

• Comparing actual financial performance to the budgeted figures

• Creating a new budget from scratch

• Setting up a savings account

• Calculating interest rates

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Which type of budget starts from a "zero base" and every function within an organization is analyzed for its needs and costs?

• Flexible budget

• Static budget

• Zero-based budget

• Incremental budget

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What is a flexible budget?

• A budget that remains the same regardless of changes in activity levels

• A budget that adjusts or flexes with changes in volume or activity

• A budget that is created for a single project

• A budget that is used for long-term planning

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Which software is specifically designed for personal budgeting?

• QuickBooks

• Photoshop

• Final Cut Pro

• Mint

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What is the final step in the budgeting process?

• Setting financial goals

• Allocating resources

• Monitoring and reviewing the budget

• Creating budget reports

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Which type of budget is used to plan for the acquisition of long-term assets?

• Operating budget

• Capital budget

• Cash flow budget

• Flexible budget

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