WorksheetsF24TH - Budgets, Balance Sheets, Income Statements
Total questions: 48
Worksheet time: 24mins
Name
Class
Date
1.
Your paycheck is _____.
a)
income
b)
exepense
c)
asset
d)
liability
e)
None of these
2.
Child support that you receive is _____.
a)
income
b)
exepense
c)
asset
d)
liability
e)
None of these
3.
Scholarships that you receive are _____.
a)
income
b)
exepense
c)
asset
d)
liability
e)
None of these
4.
Child support that you pay is _____.
a)
income
b)
exepense
c)
asset
d)
liability
e)
None of these
5.
Tuition that you pay is _____.
a)
income
b)
exepense
c)
asset
d)
liability
e)
None of these
6.
Rent that you pay is _____.
a)
income
b)
exepense
c)
asset
d)
liability
e)
None of these
7.
"Housing" that you pay in college is _____.
a)
income
b)
exepense
c)
asset
d)
liability
e)
None of these
8.
Student loans are a _____.
a)
income
b)
exepense
c)
asset
d)
liability
e)
None of these
9.
A car loan is a _____.
a)
income
b)
exepense
c)
asset
d)
liability
e)
None of these
10.
A mortgage is a _____.
a)
income
b)
exepense
c)
asset
d)
liability
e)
None of these
11.
The amount that you owe on your credit card is a _____.
a)
income
b)
exepense
c)
asset
d)
liability
e)
None of these
12.
How can you pay for a deficit:
a)
Use some of your assets
b)
Increase your liabilities
c)
Neither of these - you can't pay for a deficit
d)
Either of these - but they both lower your net worth
13.
Which of these lowers you net worth:
a)
Using some of your assets to pay for a deficit
b)
Increasing your liabilities to pay for a deficit
c)
Neither of these - you can't pay for a deficit
d)
Either of these - they both lower your net worth
14.
True or False. Spending more than you earn always lowers your net worth.
a)
True
b)
False
15.
Making a budget helps you think about your _____ every time you spend money.
a)
opportunity cost
b)
grandmother
c)
debt-to-credit ratio
d)
financial literacy teacher
e)
grade point average
16.
Which of these correctly state the relationship between income statements and balance sheets:
a)
A surplus on your income statement increases assets or decreases liabilities on your balance sheet
b)
A deficit on your income statement decreases assets or increases liabilities on your balance sheet
c)
Both of these are true
d)
Neither of these are true - there is not connection between income statements and balance sheets
17.
A _____ tells you where you hope to be in the future.
a)
Budget
b)
Income statement
c)
Balance Sheet
d)
None of these
e)
All of these
18.
A _____ tells you where you have been in the past.
a)
Budget
b)
Income statement
c)
Balance Sheet
d)
None of these
e)
All of these
19.
A _____ tells you where you are now.
a)
Budget
b)
Income statement
c)
Balance Sheet
d)
None of these
e)
All of these
20.
Creating a _____ is a key part of succesful financial planning.
a)
Budget
b)
Income statement
c)
Balance Sheet
d)
None of these
e)
All of these
21.
What should "balance" on your balance sheet
a)
Income should balance expenses
b)
Assets should balance liabilities
c)
Liabilities plus net worth should balance assets
d)
None of these - nobody knows why they call them "balance sheets"
22.
Using a budget can help you:
a)
Lower your deficit
b)
Increase your surplus
c)
Increase your net worth
d)
All of these
e)
None of these
23.
True or False. With a zero sum budget, you should not have a surplus.
a)
True
b)
False
24.
True or False. With a zero sum budget, you should not have a deficit.
a)
True
b)
False
25.
True or False. When creating a budget for your college years, your "income" should include student loans.
a)
True
b)
False
26.
True or False. When creating a budget for your college years, your "income" should include grants and scholarships.
a)
True
b)
False
27.
True or False. Nearly everyone that earns more than $250,000 have excellent credit scores.
a)
True
b)
False
28.
True or False. Consumers’ average credit scores tend to increase with income.
a)
True
b)
False
29.
Who tends to have higher credit card balances:
a)
People with low incomes
b)
People with high incomes
c)
People who live paycheck to paycheck
d)
None of these
30.
Who tends to pay off their credit card balances each month:
a)
People with low incomes
b)
People with high incomes
c)
People who live paycheck to paycheck
d)
None of these
31.
What is “cash stuffing” used for?
a)
Investing
b)
Building credit
c)
Budgeting your money
d)
Tracking your net worth
32.
What is one drawback of the "cash stuffing" budgeting method?
a)
If you lose the envelope, your money is gone
b)
If you lose the envelope, you must report it to your bank to get more cash
c)
You have to keep your finances organized into categories and plan ahead
d)
Using cash is proven to lead to more mindless spending
e)
Cash is not as convenient as getting paid electronically or paying for things electronically
33.
True or False. The "cash stuffing" method requires cash - you can't do it on your phone.
a)
True
b)
False
34.
What are the top 3 most costly categories for the average American’s yearly budget?
a)
Food, housing and transportation
b)
Food, transportation and entertainment
c)
Housing, transportation and income taxes
d)
Housing, food and debt
35.
True or False: The average American family budget includes a line item for repaying debt.
a)
True
b)
False
36.
True or False. For most people, having a budget will help them avoid spending more than the earn.
a)
True
b)
False
37.
True or False. Prices for used baby clothes and equipment are about the same as if you buy them new.
a)
True
b)
False
38.
Which of these is NOT the best way to deal with the loss of income while one of the parents is on maternity leave?
a)
Set aside part of your budget before the baby arrives
b)
Take money from other categories of your budget after the baby arrives
c)
Use a credit card to cover it
d)
None of these are good ways to cover it
39.
True or False. Child care is the biggest expense for most families with young children.
a)
True
b)
False
40.
Which of these do the experts recommend doing when people are expecting a baby:
a)
Save money for unexpected expenses
b)
Buy a new house, because the baby will judge you otherwise
c)
Buy a new car, because the baby will judge you otherwise.
d)
Buy a lottery ticket
41.
True or False. Biological parents are required to support their children, even if they are not married.
a)
True
b)
False
42.
True or False. Biological parents are required to help pay for their child's medical insurance only if they are married to the child's mother.
a)
True
b)
False
43.
True or False. Biological parents are required to help pay for their child's day care only if they are married to the child's mother.
a)
True
b)
False
44.
Which or these do courts consider when deciding how much a parent should pay in child support?
a)
Whether the parent has custody of the child
b)
How much money the custodial parent earns.
c)
How much money the non-custodial parent earns.
d)
How much time the child spends with the non-custodial child.
e)
All of these.
45.
Start your monthly zero-based budget by writing down:
a)
Your monthly take-home pay
b)
What you spend each month on needs
c)
What you spend each month on wants
d)
What you can put into your savings
e)
What you can add to your investments
46.
Which of these things should go on your budget:
a)
Income
b)
Expense
c)
Surplus or deficit
d)
Assets
e)
Liabilities
47.
Money that you will list in your budget for your 401(k) or Roth should be listed under ______
a)
Savings
b)
Investments
c)
Liabilities
d)
All of these
48.
Money that you budget for _____ should be listed under "emergency fund."
a)
food
b)
car repairs
c)
rent
100 %
