WorksheetsDR Budget Test
Total questions: 60
Worksheet time: 2hrs 16mins
Expenses that remain the same from month to month.
Variable
Fixed
Non-essential expenses
Discretionary
Intermittent
4. The zero-based budget is the best method of budgeting because:
This 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
ʺPay yourself firstʺ means you should assign a portion of your income to saving and investing every month.
True
False
Groceries are a:
Fixed Expense
Variable Expense
Discretionary Expense
Intermittent Expense
Which of the following is something that a typical millionaire would do?
Spend less money than he or she makes
lease a new car
replace things that are not broken
carry debt
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
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
Car repairs are a:
fixed
variable
discretionary
intermittent
to match your bank statement with your checkbook.
cash flow plan
Reconcile
A written cash flow plan
budget
personal finance
The number-one cause of divorce in North America today is stress and disagreements over money.
True
False
Your monthly budget should include:
Variable expenses
Discretionary expenses
Fixed expenses
All of the above
Eating out is what type of expense?
Fixed
Variable
Discretionary
Intermittent
Series of envelopes that are divided into categories and are used to store cash for planned monthly expenses.
Envelope system
Check carbon
Writing and following a zero-based budget will help you avoid overspending and impulse purchases.
True
False
Setting up automatic account transfers is the easiest way to build your savings for your emergency fund or large purchases
True
False
An item that is bought without previous planning or consideration of the long-term effects.
Sale Item
Impulse purchase
A written budget, if followed, removes _________ from your finances.
overspending
guilt
management by crisis
all of the above
Rent is what kind of expense?
fixed
variable
discretionary
intermittent
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
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
An item that is bought without previous planning or consideration of the long-term effects
sale item
impulse purchase
budget
envelope system
Expenses that remain the same from month to month
Variable
Fixed
intermittent
discretionary
What will tracking expenses help you do?
Stick to a budget
Catch errors
Make adjustments
All of these
What is it called when you make money on the percentage of the total sales you make?
Irregular Income
Gross Income
Commission
Overttime
To budget with a(n) ________, prioritize expenses from most to least important so your most important expenses are covered first.
Irregular Income
Net Income
Gross Income
None of these
The cost of groceries and gas is considered a(n) ________.
Fixed Expense
Variable Expense
Intermittent Expense
Discretionary Expense
Taxes and withholdings impact your _______, which is the amount of money you take home on your paycheck.
Earnings
Gross Income
Net Income
Irregular Income
The best way to budget is . . .
By using a digital app
Creating a spreadsheet
The way that works best for you
On paper
What should you do if you overspend in one category of your budget?
Adjust your budget by removing money from other spending categories.
Just leave it. It will probably work out fine.
Take money from the Giving category. You're giving to yourself!
Ask a friend for the money you overspent.
A common misconception is that budgeting will keep you from having fun, when in reality a budget . . .
adds more stress to your life.
means there are no rules - you are free to use your money however you want.
restricts your fun completely.
gives you permission to spend.
What kind of money counts as income?
Only the money you make at your job
Money in your savings account
All money that you receive, including money from your job and gifts like birthday money
Only money deposited into your bank account
Why is tracking your expenses throughout the month important?
It allows you to delete categories you don't like.
It gives you insight into whether you're sticking to the budget you set.
It helps you pull money from your savings to spend in other categories.
It really isn't that important in the long run.
Going to the movies is an example of what types of expenses?
Intermittent and Variable
Discretionary and Fixed
Intermittent and Fixed
Discretionary and Variable
How many months does it usually take for your budget to start working as a budget should?
One
Three
Four
Five
Detailed categories on your budget will help you make better spending decisions.
True
False
What does a budget show you?
How much you need to save
How much money you spent last month
How much money you plan to come in and go out during the month
How much money you need to earn
How often should you create a budget?
Daily
Weekly
Monthly
Biannually
How many categories should you have in your budget?
15 or more
No limit; use as many as you need to keep your budget accurate
No more than 10
At least 3
What are the Four Walls?
Utilities, college fund, restaurants, and car insurance
Cell phone bill, car insurance, shelter, and money for the movies
Food, utilities, transportation, and college fund
Food, utilities, shelter, and transportation
The average student loan debt is about
$30,000
$12,000
$18,000
$6,000
Personal finance is ____% behavior and ____% knowledge.
50, 50
80, 20
If you write a zero-based budget every month, it is not necessary to reconcile your account.
True
False
A debit card cannot be used for online purchases.
True
False
A written cash flow plan
budget
personal finance
envelope system
overdraft
________________________ 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.
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
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
Detailed plan of how you are going to use your money to pay for things you want and need.
Budget
Income
Periodic Expenses
Cash Flow
True or False: Budgeting is extra work that does not benefit you and makes no difference in your life.
True
False
