Profit

What is a variable expense?

• A cost that remains constant over time, such as rent or mortgage payments.

• A cost that can change, such as groceries or car repairs.

• A one-time payment that does not recur, like a purchase of a car.

• An expense that is always predictable and does not vary with usage.

What is a budget?

• A plan that outlines expected income and expenses over a certain period.

• A document that tracks only expenses without considering income.

• A financial statement that shows past income and expenses.

• A tool used exclusively for saving money.

Why is it important to track expenses?

• It helps individuals understand where their money goes and manage their finances better.

• It allows people to spend more freely without consequences.

• It eliminates the need for budgeting altogether.

• It ensures that all expenses are tax-deductible.

What is a fixed expense?

• A cost that varies each month, like groceries.

• A cost that does not change, such as rent or a monthly subscription.

• A one-time payment for a service or product.

• An expense that is only incurred during certain seasons.

What do banks do with the money they receive from deposits?

• Banks invest the money in the stock market.

• Banks lend money to people and businesses, and they pay interest on the deposits.

• Banks keep all the money in a safe and do not use it.

• Banks use the money to buy real estate properties.

How do you calculate profit?

• Profit = Total Income + Total Costs.

• Profit = Total Income - Total Costs.

• Profit = Total Income / Total Costs.

• Profit = Total Income * Total Costs.

What is the cost of goods sold?

• The total revenue generated from sales.

• The total cost of producing or purchasing the items that were sold.

• The profit made after selling goods.

• The expenses incurred in marketing the products.

What is a garage sale?

• A sale of unwanted items, typically held in a person's garage or yard.

• A type of auction held in a public space.

• A sale of new items at a discounted price.

• A community event for selling homemade goods.

What is interest?

• Interest is the money paid to banks for borrowing money or the money earned on deposits.

• Interest is a fee charged by banks for account maintenance.

• Interest is the amount of money required to open a bank account.

• Interest is a tax imposed on savings accounts.

What does it mean to break even?

• It means to make a profit after all expenses are paid.

• It means that total income equals total costs, resulting in no profit or loss.

• It means to incur a loss on investments.

• It means to have more expenses than income.