Budgeting Quiz

1. What is a budget?

• a. A list of all debts
• b. A financial plan outlining expected income and expenses
• c. A summary of savings accounts
• d. A document detailing investments

2. What does income refer to?

• a. The total expenses for a period
• b. The money received regularly for work or investments
• c. The amount saved for future use
• d. The excess money after expenses

3. What is an expense?

• a. The income earned from investments
• b. The cost incurred in doing something
• c. The surplus income over budget
• d. The amount of debt owed

4. What is savings?

• a. Money owed to others
• b. Income spent immediately
• c. The portion of income set aside for future use
• d. The forecast of future expenses

5. What is debt?

• a. Money saved for future needs
• b. Income from investments
• c. Money owed or due to another party
• d. A surplus in the budget

6. What is forecasting in financial terms?

• a. The process of repaying debts
• b. The allocation of funds for investments
• c. Estimating future financial outcomes based on past data
• d. Creating a budget surplus

7. What does allocation mean in budgeting?

• a. Spending money on unnecessary items
• b. Distributing resources or funds for specific purposes
• c. Saving money for emergency situations
• d. Paying off outstanding debts

8. What is expenditure?

• a. The income earned from work
• b. The total amount of savings
• c. The action of spending funds
• d. The amount of money owed

9. What does deficit mean in a budget?

• a. The amount of savings set aside
• b. Expenses exceeding income, leading to a shortfall
• c. The income generated from investments
• d. A surplus in funds

10. What is a surplus?

• a. Additional debt incurred
• b. Excess income over expenses
• c. The total expenses for a period
• d. Savings set aside for future use