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TOPIC 1: INCOME & EXPENSE

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

Which of the following best defines income?

a)

Money you receive as a gift

b)

Money you earn from your job or other sources

c)

Money you spend on expenses

d)

Money you save in a bank

2.

Which statement best defines self-employed?

a)

Working for oneself or as the owner of the business rather than for an employer

b)

Being paid a salary by a company each month

c)

Doing volunteer work without pay

d)

Investing money and not working at all

3.

In the scenario of a person running a donut business alone for several years, which is a likely benefit of being a sole trader?

a)

Keeping all the profits and making independent decisions

b)

Sharing profits equally with partners

c)

Having a guaranteed paid vacation from an employer

d)

Avoiding all business risks and responsibilities

4.

In the same donut business scenario, which is a likely challenge of being a sole trader?

a)

Managing many tasks alone and working long hours

b)

Always having coworkers to share duties

c)

Receiving a fixed monthly salary regardless of sales

d)

Having government pay all business expenses

5.

Income obtained through stealing is classified as which type?

a)

Halal income

b)

Haram income

6.

Income earned by honestly selling produce at a market is classified as which type?

a)

Halal income

b)

Haram income

7.

Which type of income is money you have to actively work for, like income from a job or your business?

a)

Active income

b)

Passive income

c)

Portfolio income

d)

Net income

8.

Which type of income is money you receive without actively doing work, such as a pension or allowance?

a)

Active income

b)

Passive income

c)

Portfolio income

d)

Gross income

9.

Which type of income comes from investments such as stocks, dividends, or interest?

a)

Active income

b)

Passive income

c)

Portfolio income

d)

Net income

10.

Which statement about active income versus passive income is correct?

a)

Active income continues even if you stop working; passive income stops when you stop

b)

Active income stops when you stop working; passive income is not dependent on your daily work

c)

Both active and passive income require full-time daily labor

d)

Neither active nor passive income can come from a business

11.

Gross income is best described as which of the following?

a)

Income you earned before taxes and other deductions

b)

Income after taxes and other deductions

c)

Income from investments only

d)

Income paid as an hourly wage

12.

Net income is best described as which of the following?

a)

Income you earned before taxes and other deductions

b)

Income after taxes and other deductions

c)

Income from selling goods at a market

d)

Income given as a monthly salary

13.

In some countries, you must pay a portion of your income to the government as what?

a)

Income tax

b)

Sales receipt

c)

Loan repayment

d)

Interest rate

14.

In Brunei, instead of paying income tax, a portion of your salary is deducted toward which program?

a)

GST

b)

TAP

c)

VAT

d)

Zakat

15.

Which description matches a salary?

a)

A fixed amount paid on a monthly basis regardless of hours worked

b)

An amount paid based on an hourly or daily rate

c)

Money received from investments

d)

Money given as a one-time bonus only

16.

Which description matches wages?

a)

A fixed monthly amount regardless of hours worked

b)

An amount paid to an employee based on an hourly or daily rate

c)

Income after taxes and other deductions

d)

Money earned from renting property

17.

Which phrase best defines expenses?

a)

Money paid or spent for goods and services

b)

Money you earn or receive from work

c)

Money given as a gift

d)

Money kept in a savings account

18.

Which is an example of a need-based expense?

a)

Buying movie tickets

b)

Paying rent or utilities

c)

Taking a vacation

d)

Upgrading a gaming console

19.

Which type of expense stays the same every month, such as rent or car loan payments?

a)

Variable expense

b)

Fixed expense

c)

Optional expense

d)

Irregular income

20.

Which is the best action if your expenses are more than your income?

a)

Reduce spending and/or increase income by budgeting

b)

Ignore it and keep spending on wants

c)

Take on more debt to cover all wants

d)

Spend savings on non-essentials first

21.

Going for a vacation is considered what type of expense?

a)

Essential Expense

b)

Discretionary Expense

c)

Fixed Expense

d)

Variable Expense

22.

Which of the following is an example of fixed expense?

a)

Utilities

b)

Eating Out

c)

House Rental

d)

Car Repair

23.

Which of the following is NOT an example of variable expense?

a)

Utilities

b)

Car loan repayment

c)

Entertainment

d)

Eating Out

24.

What is the primary difference between fixed and variable expenses?

a)

Fixed expenses remain constant; variable expenses can change

b)

Fixed expenses are always higher than variable expenses

c)

There is no difference between fixed and variable expenses

d)

Fixed expenses change monthly; variable expenses remain constant

25.

Which of the following best describes the difference between essential and discretionary expenses?

a)

Essential expenses are necessary for survival, while discretionary expenses are non-essential and can be adjusted.

b)

Essential expenses are optional, while discretionary expenses are mandatory.

c)

Essential expenses are always higher than discretionary expenses.

d)

Essential expenses include luxury items, while discretionary expenses include basic needs.