Chp 17.4- Budgeting

What is the importance of filing taxes?

• Filing taxes is important because it is a legal requirement and helps fund government programs and services.

• Filing taxes is not important because the government does not use the funds effectively.

• Filing taxes is important because it helps individuals evade taxes and avoid penalties.

• Filing taxes is not important because it is a waste of time and money.

Which of the following is an example of a flexible expense?

• Rent

• Car payment

• Groceries

• Health insurance

The first step in creating a budget is _________.

• know your income

• determine fixed expenses

• determine variable expenses

• review periodically

True or False: Fast-foods and restaurant meals tend to be the most costly items in a food budget.

• True

• False

What is the first step in creating a budget?

• Set financial goals.

• Track spending habits.

• Review past budgets.

• Determine income and expenses

People create and keep a personal budget to help them _____.

• set and reach financial goals

• apply for loan

• buy anything they want

• earn promotions at work

Fringe benefits include the following, EXCEPT...

• free accommodation

• company vehicle

• free trips abroad/holidays

• profit sharing

What is the main difference between debit cards and credit cards?

• Debit cards use your own money, while credit cards give you a loan

• Debit cards give you a loan, while credit cards use your own money

• Debit cards and credit cards both use your own money

• Debit cards and credit cards both give you a loan

What are some common taxes on a paycheck?

• federal income tax, state income tax, Social Security tax, Medicare tax, mandatory deductions

• federal income tax, state income tax, Social Security tax, Medicare tax

• federal income tax, state income tax, Social Security tax, Medicare tax, retirement contributions

• federal income tax, state income tax, Social Security tax, Medicare tax, health insurance premiums

Salary

• A payment relating to the number of sales made.

• Payment for work, usually paid weekly.

• Payment for work, usually paid monthly.

• An additional amount of payment above basic pay as a reward for good work.