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Budgeting Practice Test

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

TRUE/FALSE — (8 items): A budget is a plan that helps you manage your income and expenses.

a)

True

b)

False

2.

TRUE/FALSE — (8 items): Variable expenses change depending on choices and usage.

a)

True

b)

False

3.

TRUE/FALSE — (8 items): Fixed expenses are easy to change from month to month.

a)

True

b)

False

4.

TRUE/FALSE — (8 items): Savings is considered a flexible expense.

a)

True

b)

False

5.

TRUE/FALSE — (8 items): Tracking spending helps increase budgeting accuracy.

a)

True

b)

False

6.

TRUE/FALSE — (8 items): A short-term goal is something achievable within one year.

a)

True

b)

False

7.

TRUE/FALSE — (8 items): Rent is considered a flexible expense.

a)

True

b)

False

8.

TRUE/FALSE — (8 items): A budget is only effective if you have a high income.

a)

True

b)

False

9.

MULTIPLE CHOICE — (12 items): The most effective way to reduce food spending is to...

a)

Eat out more often

b)

Buy more snacks

c)

Cook meals at home

d)

Skip meals

10.

MULTIPLE CHOICE — (12 items): If Maya pays $150 per month for insurance, what is her annual insurance cost?

a)

$1,500

b)

$1,800

c)

$1,650

d)

$1,750

11.

MULTIPLE CHOICE — (12 items): A goal someone wants to meet in the next 12 months is called a...

a)

Lifetime Goal

b)

Career Goal

c)

Short-Term Goal

d)

Long-Term Goal

12.

MULTIPLE CHOICE — (12 items): Which software is best for building a budget spreadsheet?

a)

Web browser

b)

Spreadsheet program

c)

Word processor

d)

Calculator

13.

MULTIPLE CHOICE — (12 items): Which category is usually included in a personal budget?

a)

Housing

b)

Amusement park visits

c)

Vacation souvenirs

d)

All of these

14.

MULTIPLE CHOICE — (12 items): If someone earns 2,700monthlyandspends2,700 monthly and spends 2,560, their budget...

a)

Has a $140 surplus

b)

Has a $140 deficit

c)

Is balanced

d)

Is incomplete

15.

MULTIPLE CHOICE — (12 items): Which category is generally the largest in an average person’s budget?

a)

Food

b)

Housing

c)

Transportation

d)

Clothing

16.

MULTIPLE CHOICE — (12 items): A document used to compare planned vs. actual spending is a...

a)

Credit Statement

b)

Budget Worksheet

c)

Check Register

d)

Balance Sheet

17.

MULTIPLE CHOICE — (12 items): Which is a flexible expense?

a)

Car loan

b)

Rent

c)

Cell phone bill (fixed plan)

d)

Restaurant meals

18.

MULTIPLE CHOICE — (12 items): If Jacob earns $70 per week over four weeks, his monthly income is...

a)

$140

b)

$210

c)

$280

d)

$350

19.

MULTIPLE CHOICE — (12 items): Gross pay is...

a)

Money after taxes

b)

Money before taxes

c)

Always less than net pay

d)

Only earned by hourly workers

20.

MULTIPLE CH Suppose Apps help users because...

a)

They guarantee extra income

b)

They make tracking spending easier

c)

They automatically raise credit scores

d)

They remove the need for budgeting

21.

STATEMENT COMPLETION — (5 items): Use the word bank to complete each statement. Word Bank: Fixed Expense; Earned Income; Expense; Life-Span Goal; Cash Flow. Rent is an example of a ________.

a)

Fixed Expense

b)

Earned Income

c)

Expense

d)

Life-Span Goal

e)

Cash Flow

22.

STATEMENT COMPLETION — (5 items): Use the word bank to complete each statement. Word Bank: Fixed Expense; Earned Income; Expense; Life-Span Goal; Cash Flow. Money earned from a job is called ________.

a)

Fixed Expense

b)

Earned Income

c)

Expense

d)

Life-Span Goal

e)

Cash Flow

23.

STATEMENT COMPLETION — (5 items): Use the word bank to complete each statement. Word Bank: Fixed Expense; Earned Income; Expense; Life-Span Goal; Cash Flow. Any money leaving your pocket is an ________.

a)

Fixed Expense

b)

Earned Income

c)

Expense

d)

Life-Span Goal

e)

Cash Flow

24.

STATEMENT COMPLETION — (5 items): Use the word bank to complete each statement. Word Bank: Fixed Expense; Earned Income; Expense; Life-Span Goal; Cash Flow. Saving for retirement is an example of a ________.

a)

Fixed Expense

b)

Earned Income

c)

Expense

d)

Life-Span Goal

e)

Cash Flow

25.

STATEMENT COMPLETION — (5 items): Use the word bank to complete each statement. Word Bank: Fixed Expense; Earned Income; Expense; Life-Span Goal; Cash Flow. Income minus expenses is known as ________.

a)

Fixed Expense

b)

Earned Income

c)

Expense

d)

Life-Span Goal

e)

Cash Flow