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Budgets & Financial Records (FL3)

Total questions: 35

Worksheet time: 18mins

Name
Class
Date
1.

When preparing a budget, which option will NOT be included?

a)

expenses

b)

income

c)

cash surplus

d)

personal property inventory

2.

A long-term set of goals for spending, saving, and investing the money you receive.

a)

net worth statement

b)

budget

c)

financial plan

d)

negotiable instrument

3.

What is the most common type of negotiable instrument?

a)

check

b)

promissory note

c)

warranty

d)

budget

4.

A document that lists things you own, along with purchase prices and approximate current values

a)

warranty

b)

net worth statement

c)

personal property inventory

d)

contract

5.

A statement of assets, liabilities, and overall worth

a)

worth sheet

b)

budget

c)

personal property inventory

d)

net worth statement

6.

When your liabilities are greater than your asset, you are solvent.

a)

True

b)

False

7.

Only written contracts can be legally enforced.

a)

True

b)

False

8.

Some contracts can be implied by actions.

a)

True

b)

False

9.

In a contract, when a valid offer is made and accepted, what is this called?

a)

agreement

b)

consideration

c)

contractual capacity

d)

legality

10.

If you sign a contact, but don't understand the terms, you will still be required to fulfill the contract's requirements.

a)

True

b)

False

11.

Who needs a personal filing system?

a)

People who earn a lot of money

b)

Young people

c)

Retired people

d)

Everyone

12.

Which filing system can be updated quickly and easily?

a)

Paper filing system

b)

Computerized filing system

13.

What percentage of income do financial experts recommend that you save each month (as a minimum)?

a)

20%

b)

30%

c)

40%

d)

50%

14.

Which is an example of a fixed expense?

a)

groceries

b)

gas

c)

rent

d)

clothing

15.

Which is an example of a variable expense?

a)

mortgage

b)

car insurance

c)

student loan

d)

entertainment

16.

Items of value that a person owns

a)

assets

b)

liabilities

c)

net worth

17.

Amounts of money owed to others

a)

assets

b)

liabilities

c)

net worth

18.

Which is an example of an asset?

a)

student loan debt

b)

checking account

c)

credit card

d)

car loan

19.

Which is an example of a liability?

a)

laptop

b)

cell phone

c)

rent

d)

car loan

20.

How many years does the IRS have to audit your tax return?

a)

1

b)

3

c)

5

d)

10

21.

A response to an offer that changes the terms in some way

a)

consideration

b)

counteroffer

c)

agreement

d)

contractual capacity

22.

Computer program that organizes data in columns and rows, and can perform calculations

a)

database

b)

calculator

c)

presentation

d)

spreadsheet

23.

Computer program that organizes data for easy search and retrieval, and can sort information into reports.

a)

database

b)

calculator

c)

presentation

d)

spreadsheet

24.

A spending and savings plan based on your expected income and expenses

a)

checkbook register

b)

contract

c)

budget

d)

spreadsheet

25.

Which type of expenses change from month to month?

a)

fixed

b)

variable

26.

What is the formula to calculate net worth?

a)

assets + liabilities

b)

assets - liabilities

c)

liabilities - assets

d)

liabilities/assets

27.

A legally enforceable agreement between two or more people

a)

contract

b)

budget

c)

consideration

d)

counteroffer

28.

Something of value exchanged for something else of value

a)

legality

b)

contractual capacity

c)

agreement

d)

consideration

29.

Statements about a product's qualities or performances that a seller assures that buyer are true

a)

negotiable instrument

b)

promissory note

c)

warrant

d)

remedy

30.

Which if the following could qualify as consideration in a contract?

a)

cash

b)

a performed service

c)

a valuable item

d)

All are examples of consideration.

31.

An unconditional promise to pay a specified sum of money upon demand

a)

budget

b)

warranty

c)

negotiable instrument

d)

net worth statement

32.

Which filing system needs a backup?

a)

paper filing system

b)

computer filing system

c)

Both systems need a backup

33.

Another term discretionary income

a)

cash surplus

b)

cash deficit

c)

investments

d)

overflow

34.

The warranty of merchantability guarantees that the item will last for at least 10 years.

a)

True

b)

False

35.

A written promise to pay a certain sum of money to another party or the holder of the note on a specified, future date

a)

promissory note

b)

check

c)

warranty

d)

budget