Managing Finances and Budgeting

What is the difference between income and expenses?

• Income is money you spend, expenses are money you earn

• Income is money you earn, expenses are money you spend

• They are the same thing

• Income is only from jobs, expenses are only for bills

Which of the following is NOT an example of a financial planning tool?

• Spreadsheet

• Budgeting app

• Written budget

• Credit card

What does a net worth statement show?

• Only your assets

• Only your debts

• The difference between your assets and debts

• Your monthly income

Which type of income is earned by letting others use your property?

• Interest

• Profit

• Rental income

• Salary

What is the term for physical items that you can buy?

• Services

• Goods

• Leases

• Rentals

What is a lease?

• A one-time payment for a service

• A contract to rent something, usually for a longer period

• A type of loan

• A way to own something immediately

Which of the following is NOT a common payment method?

• Cash

• Debit card

• Layaway plan

• Credit card

8. The purpose of a cost-benefit analysis is to:

• evaluate the financial implications of a decision

• determine the cost of a project

• analyze the benefits of a project

• assess the risks involved in a project

What are fixed expenses?

• Expenses that change each month

• One-time large purchases

• Personal expenses that are the same each month

• Business expenses only

What is the difference between gross income and net income?

• Gross income is before taxes, net income is after taxes

• Gross income is for businesses, net income is for individuals

• They are the same thing

• Gross income is monthly, net income is yearly