Chapter 2 Vocabulary

What is a fixed expense?

• An expense that varies each period.

• An expense that remains the same amount each period.

• An unexpected expense.

• An expense that occurs only once a year.

How is a budget calculated?

• Expenses – Income

• Income + Assets

• Income – Expenses

• Assets – Liabilities

Tags

CCSS.7.EE.B.3

CCSS.7.NS.A.1

CCSS.7.NS.A.3

Which of the following is considered an asset?

• A loan you owe

• Your monthly rent payment

• A car you own

• Your monthly utility bill

What is included in utility expenses?

• Groceries and dining out

• Electricity, natural gas, water, sewer, & trash

• Internet and cable TV

• Clothing and accessories

How is net worth calculated?

• Income – Expenses

• Assets + Liabilities

• Assets – Liabilities

• Income + Assets

Tags

CCSS.7.EE.B.4

CCSS.7.NS.A.1

CCSS.7.NS.A.3

What is a variable expense?

• An expense that is the same each period

• An expense that is different each period

• An expense that is paid annually

• An expense that is paid quarterly

What does an unbalanced budget (deficit) indicate?

• Income is greater than expenses

• Income is equal to expenses

• Income is less than expenses

• Expenses are zero

Tags

CCSS.HSA.SSE.A.1

How is the debt-to-income ratio calculated?

• Monthly total income divided by monthly total debt

• Monthly total debt divided by monthly total income

• Annual income divided by annual expenses

• Total assets divided by total liabilities

Tags

CCSS.7.EE.B.3

CCSS.7.NS.A.3

CCSS.7.RP.A.2

CCSS.7.RP.A.3

What is the definition of income?

• Money spent on goods and services

• Money received, especially on a regular basis, for work or through investments

• Money saved for future use

• Money borrowed from a bank

What does a balanced budget (surplus) mean?

• Income is less than expenses

• Income is equal to expenses

• Income is greater than expenses

• Expenses are greater than income