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WorksheetsDave Ramsey Budgeting Unit Test
Total questions: 50
Worksheet time: 26mins
Which of the following is a consequence of overdrawing your checking account?
Bounced check fee from the store
Stress from money mismanagement
Overdraft fee from your bank
All of the above
Doing a budget does not
Show if you are overspending in an area
make overspending more likely
remove guiltand shame sometimes associated with a purchase
make your money go further
Your monthly budget should include
variable expenses
discretionary expenses
fixed expenses
all of the above
Which of the following statements is false?
A cash flow statement summarizes all of the incomes and outgo (spending) over a certain time period
a budget is a written plan for saving and spending
a budget is meant to summarize the saving and spending that has taken place over the past year
the cash flow statement is reflective of what has already taken place
Which of the following is something that a typical millionaire would do?
Lease a new car
spend less money than he or she makes
replace things that are not broken
carry debt
A written a budget, if followed, remove ____________ from your finances.
Overspending
Guilt
Management by crisis
All of the above
The following are guidelines for budgeting with an irregular income except:
prioritize the list in order of importance
Make a list of all of your expenses for the month ahead
Budeting with an irregular income is no different than bugeting with a regular income
When your check comes in, spend your money all the way down the list.
The zero-based budget is the best method of budgeting because
The type of budget is less complicated than other types of budgets
A zero-based budget allows less money for wants
Sticking to a zero-based budget requires less discipline
The zero-based budget ensures that every dollar you make is assigned a specific purpose
Which of the following is not a record-keepingfeature you could expenect from your bank?
a reconciliation sheet
an account register
customer service reconciles your account for you
A monthly account statement
Which of the following account records would have the most current balance?
Account balance statement from the ATM
Your own account register
Your monthly bank statement
All of these records will have accurate account balances
The number-one cause of divorce in North America today is stress and disagreement over money.
True
False
The envelope system works great for managing spending on things that don't normally have a fixed monthly expense.
True
False
If you write a zero-based budget every month, it is not necessary to reconcile your account.
True
False
Budgeting is crucial to your financial success.
True
False
Writing and following a zero-based budget will help you avoid overspending and impulse purchases.
True
False
A debit card cannot be used for online purchases.
True
False
"Pay yourself first" means you should assign a portion of your income to saving an investing every month.
True
False
Online bill pay allows you to make payments to whomever you wish without having to write a check and send it in the mail.
True
False
Having more than one bank account is never a good idea since it can complicate money management.
True
False
Setting up automatic account transfers is the easiest way to building your savings for for your emergency fund or large purchases.
True
False
Occurs when money is withdrawn from a bank account and the available balance goes below zero
overdraft
reconcile
impulse purchase
envelope system
A cash flow plan that assigns an expense to every dollar of your income, wherein the total income minus the total expenses equals zero
zero-spending plan
zero-based budget
zero overdraft
zero reconciliation
Series of envelopes that are divided into categories and are used to store cash for planned monthly expenses
envelope system
check carbon
cash flow plan
budget
An item that is bought without previous planning or consideration of the long-term effects
sale item
impulse purchase
budget
envelope system
To match your bank statement with your checkbook
cash flow plan
budget
reconcile
personal finance
A written cash flow plan
budget
personal finance
envelope system
overdraft
Your own record of all your transactions
Cash flow satement
budget
check register
account statement
________________________ is what you earned BEFORE deductions.
Bonus Pay
Gross Pay
Net Pay
Overtime Pay
________________________ is what you earned AFTER deductions.
Bonus Pay
Gross Pay
Net Pay
Overtime Pay
A "withholding allowance" for Federal Income Tax is...
...an exemption you claim based on the number of people you support.
...a way to make extra money for doing a chore, like taking out the garbage.
...the money that the government charges you for having too many kids.
...the first $2,500 you earn.
What is the rate for Social Security?
1.45%
6.2%
7.45%
10%
What is the rate for Medicare?
1.45%
6.2%
7.45%
10%
After exemptions, a person's annual gross pay is $54,800. If the state income tax rate is 5%, what is the annual deduction for state income tax?
$5
$105.38
$2,740
$5,480
A person's weekly gross pay is $1,500. The deductions are: Federal income tax is $120, State Income Tax is $60.25, Social Security tax is $93, Medicare is $21.75, and Health Insurance is $55. What is the person's net pay?
$1,350
$1,295
$1,195
$1,150
Overtime pay is determined by: ____________________
adding the hours worked to the hours worked overtime
multiplying the hours worked by the hours worked overtime
multiplying the regular pay x 1.5
To calculate the annual gross pay for an employee who receives a monthly salary
divide the monthly salary by 12.
multiply the monthly salary by 12.
multiply the monthly salary by 6.
none of the above
Carl is paid an hourly rate of $12.65. What is his weekly gross pay if he works 25 hours per week?
$316.25
$506
$253
none of the above
If an employee is paid an hourly rate of $15.10 for regular-time work, what are the employee's time-and-a-half rate for overtime work per hour?
$22.65
$30.20
$17.10
none of the above
(1-5) You are paid $760.00. What is your annual salary?
$39,520
$29,320
Not enough info
$29,230
Higgins Company gathered the following reconciling information in preparing its October bank reconciliation: Cash balance per books, 10/31 $16,800
Outstanding Deposit $600
Bank charge $80
Outstanding check $8,000
Bank Statement Balance $24,120
The adjusted check book balance on October 31 is...
$18,840.
$16,720
$31,520
$19,440.
What is the balance of the account after going to the grocery store on June 27th?
$500.24
$610.83
$540.26
$429.67
What is the balance of this checking account after the transactions shown?
$434.91
$88.13
$444.39
$675.83
$585.83
Kate's check register is shown. What is Kate's ending balance on 11/8? Record your answer in number form without spaces between digits.
(a)
If the final balance in the bank statement is $3500 , outstanding checks equal $200 and outstanding deposits total $400, the final balance in the business's bank account is:
$3700
$3400
$3300
$3900
If the final balance in the bank statement is $3900 outstanding checks equal $500 and outstanding deposits total $900, the final balance in the business's bank account is:
$4300
$4200
$3500
$3500
A check you wrote that has not been deposited and cleared by the other party's bank is known as..
Cleared Checks
Deposits in Transit
Outstanding Check
NSF Checks
What do you need to ADD to YOUR records that the bank has on their end?
Outstanding Deposits
Interest Earned
Outstanding Checks
Your Own Errors
