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Ch. 16 Pre-Quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Savings accounts and a home are examples of

a)

liabilities

b)

assets

c)

net worth

d)

cash outflow

2.

A payment for rent represents

a)

a cash inflow

b)

a cash outflow

c)

a liability

d)

an asset

3.

True or False. Retirement planning is usually considered a short-term goal.

a)

True

b)

False

4.

A major purpose of a budget is to

a)

assist with comparison shopping

b)

achieve financial goals

c)

reduce a person's enjoyment of life

d)

gather data for using credit cards

5.

The most uncertain aspect of the budgeting process

a)

estimating variable expenses

b)

determining net worth

c)

estimating fixed expenses

d)

setting financial goals

6.

A common source of retirement income is

a)

disability income insurance

b)

a mortgage

c)

pensions

d)

unemployment insurance

7.

A long-term financial goal usually involves

a)

less than two years

b)

buying with a credit card

c)

using the services of a financial planner

d)

saving over many years

8.

Which of the following is a fixed expense?

a)

Food

b)

Utilities

c)

Rent

d)

Clothing

9.

Setting financial goals is the ____ step in creating and using a budget.

a)

First

b)

Second

c)

Third

d)

Final

10.

An effective budget should be

a)

Realistic

b)

Flexible

c)

Evaluated regularly

d)

All of the above