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Business Math Chapter 3 Review

Total questions: 12

Worksheet time: 23mins

Name
Class
Date
1.

What is the maintenance of a history of one's activities, as financial dealings, by entering data in ledgers or journals, putting documents in files, etc?

a)

expenditures

b)

recordkeeping

c)

budget sheet

2.

Items you spend money on is called....

a)

expenditures

b)

recordkeeping

c)

budget sheet

3.

A report that management uses to predict the levels of assets, liabilities, and equity based on the budget for the current accounting period is known as what?

a)

expenditures

b)

recordkeeping

c)

budget sheet

4.

Find the average monthly expenditure:

January $765.35, February $783.42, March $802.15, & April $697.99

a)

$762.28

b)

$762.23

c)

$1,016.30

5.

Which is a synonym for "Variable Expense"?

a)

Living Expense

b)

Fixed Expense

c)

Annual Expense

6.

Which is NOT an example of a living/variable expense?

a)

rent/mortgage

b)

electricity

c)

groceries

d)

entertainment

7.

Check ALL that apply:

Which are examples of a FIXED expense?

a)

Groceries

b)

Rent/Mortgage

c)

Car Payment

d)

Car Registration

e)

Electricity

8.

What compares the amount you actually spend to the amount you have in your budget?

a)

emergency fund

b)

expense summary

c)

expenditure

9.

How much money should you have in an emergency fund?

a)

You don't need an emergency fund because life never throws you any curve balls.

b)

at least 1 month of your monthly income

c)

at least 3 months of your monthly income

d)

2 years of your net income

10.

The Zornows have always kept accurate records of their expenditures. At the end of March, they prepared an expense summary. They had planned to spend $220 on groceries. They actually spent $231.85. How much more or less did they spend on groceries than they had budgeted for?

a)

$11.85 more

b)

$11.85 less

c)

It's only a few dollars difference, what's it matter?

11.

You're monthly budget is $2,500. You spent $600 on transportation all together between the car payment, insurance, and gas. What percent of your budget was spent on transportation?

a)

41.7%

b)

76%

c)

24%

12.

What happens if you do not pay your car loan?

a)

they repossess (take back) your car along w/ possible fines & lowering your credit score

b)

you just incur late fees until you can pay

c)

the company sues you