Copy of Unit 10 Budgeting Test A (5/21/2025)

Last updated 2 months ago

44 questions

Instructions

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

1

Required

5

Jordan is reviewing his finances to get a better understanding of his overall financial health. He decides to calculate his personal net worth. What step should Jordan take to calculate it accurately?

total liabilities - total assets

total assets + total liabilities

Subtract his total liabilities from his total assets

Maria is creating a monthly budget and wants to separate her fixed expenses from her variable ones. Which of the following would be considered a fixed expense?

gas

Rent

groceries

Carlos is reviewing his monthly spending and trying to cut back on unnecessary purchases. He decides to prioritize his needs over his wants. Which of the following items would typically be considered a need?

vacation trip

housing

A new car

After paying for his rent, groceries, utilities, and other basic needs, Marcus notices he still has some money left in his budget. What is the money he has left to spend on non-essential items called?

profit

net income

discretionary income

Aaliyah is tracking her monthly budget and wants to list all her cash inflows to see how much money she’s bringing in. Which of the following would be considered a cash inflow?

Rent payment she makes to her landlord

Money she withdraws from her savings

Her monthly salary from her job

Tyler is creating a personal balance sheet to keep track of his financial situation. He needs to list all of his assets. Which of the following would be considered an asset?

savings account

cell phone bill

credit card balance

Jasmine has $50 to spend and is deciding between buying a new jacket or going to a concert with friends. She chooses to buy the jacket. What is the value of what Jasmine gave up by making this choice?

Her disposable income

Her opportunity cost

) Her personal savings

Sophie is organizing her monthly budget and listing all the things she regularly pays for, such as transportation, groceries, and her internet bill. What are these items that require her to spend money called?

assets

expenses

Income

Noah created a monthly budget planning to earn $1,500 and spend $1,200. At the end of the month, he reviews his finances and realizes he actually earned $1,450 and spent $1,300. What is the difference between his planned and actual amounts called?

income

Discretionary income

Budget variance

The amount you budgeted to spend on food for June was $500. The amount you actually spent was $455, resulting in a

$45 favorable variance

$55 favorable variance

$55 unfavorable variance

Tiana just accepted a job that pays her an annual salary of $18,000. She wants to create a monthly budget and needs to figure out how much income she will receive each month. Assuming she is paid evenly throughout the year, how much is her monthly income?

$1,000

$2,000

$1,500

Jalen works part-time and earns $118 each week. He wants to estimate how much he will earn in a full year if he works all 52 weeks. What is Jalen’s annual income?

$11,800

$5,900

$6,136

David’s financial advisor encourages him to create a monthly budget to track his income and expenses. However, David hesitates and says he doesn’t want to make a budget. Which of the following is a possible reason why David might choose not to create a budget?

It would help an individual meet his/her financial goals.

It would help an individual learn to manage his/her money.

It would help an individual learn to spend money uncontrollably.

Emma is reviewing her monthly spending to separate her fixed expenses from her variable ones. She notices that some costs change from month to month depending on her usage and lifestyle. Which of the following would be considered a variable expense?

car payment

entertainment

rent for an apartment that has a yearly lease

Logan is organizing his monthly budget and wants to identify which of his expenses stay the same each month. Which of the following would be considered a fixed expense?

food

utilities

rent for an apartment that has a yearly lease

Libby receives her paycheck and immediately sets aside $125 into her savings account before paying any of her bills or spending on other items. What is Libby doing by setting this money aside first?

She is paying herself first.

She is keeping the money safe.

She is paying her bills.

Regan has priced a Ipad at the local stores and has found that she has saved enough money to purchase one, but has decided to wait to make a purchase in hopes of getting a better deal. What trade-off has she made?

Opportunity Cost

Economic Choice

Net Worth

After Kena and Kia got married, they developed a plan on how to spend, save and invest their money so they can live a comfortable lifestyle, retire some day, and achieve their financial goals. What process did they implement?

Personal Goals

Financial Planning

Retirement Planning

Ava is a high school student thinking about her future. She decides to set a goal that she can accomplish in the next two to five years. Which of the following would be considered a medium-term goal for Ava?

Go to a dance in a month

Planning for retirement

Saving for a car she wants to buy in two years

Each month, Jacob reviews his budget and notices that some of his bills stay exactly the same no matter what. Which type of cost is Jacob noticing?

Variable costs

Irregular costs

Fixed costs

Jordan is filling out a worksheet in his personal finance class. One of the questions asks him to list everything he owns that has monetary value, like his savings account, his laptop, and some stocks gifted by his grandparents. What are these items called?

opportunity cost

assets

fixed expenses

Samantha is calculating her financial health. She adds up everything she owns—like her car, savings account, and laptop—and then subtracts what she owes on her credit card and student loan. What is the difference between what Samantha owns and what she owes called?

Cash flow

Gross income

Net worth

Carlos wants to manage his money better, so he creates a plan that outlines how much he expects to earn (his income) and how he plans to spend (his expenses) and save that money each month. What is this type of plan called?

Net worth statement

Credit report

Budget

Alex is reviewing his financial situation and lists the money he still owes on his student loan, car loan, and credit card. What are these debts that Alex owes called?

assets

opportunity cost

liabilities

Each month, Maya notices that the amount she spends on groceries, gas, and electricity changes depending on her usage and lifestyle. What are these types of costs that can go up or down called?

Fixed expenses

Irregular expenses

Variable expenses

Megan graduated from college 2 years ago and has been working as an Advertising Director. She has worked hard over the last 2 years to save money so that she could move towards the next stage of her life. She wants to purchase a home. She plans on meeting with her local banker so she has organized her current financial information for her meeting.
Student Loan: $25,000.00; Savings Account: $10,000.00; Savings Bonds: $5,000.00; Checking Account: $15,000.00; Retirement Account: $8,000.00
Which of Megan's financial items would be considered a liability?

Her student loan.

Her retirement account.

Her saving account.

Megan graduated from college 2 years ago and has been working as an Advertising Director. She has worked hard over the last 2 years to save money so that she could move towards the next stage of her life. She wants to purchase a home. She plans on meeting with her local banker so she has organized her current financial information for her meeting.
Student Loan: $25,000.00; Savings Account: $10,000.00; Savings Bonds: $5,000.00; Checking Account: $15,000.00; Retirement Account: $8,000.00
What Would be the total of Megan's assets?

$30,000

$38,000

$33,000

Megan graduated from college 2 years ago and has been working as an Advertising Director. She has worked hard over the last 2 years to save money so that she could move towards the next stage of her life. She wants to purchase a home. She plans on meeting with her local banker so she has organized her current financial information for her meeting.
Student Loan: $25,000.00; Savings Account: $10,000.00; Savings Bonds: $5,000.00; Checking Account: $15,000.00; Retirement Account: $8,000.00
What is Megan's net worth?

$10,000

$17,000

$13,000

The Richardson's, Jill and Tim keep their financial records on their computer. They use a spreadsheet software to create a budget and keep their checkbook register. They also store their federal income tax forms electronically. Their financial records contain their social security number, their birth date, and their checking and savings account numbers. Which of the following is a benefit of electronic records for the Richardson's?

They can access information quickly.

They can store the files in a file cabinet.

They can't show their information to others.

Over the past year, prices for groceries, gas, and other everyday items have increased noticeably. Jamal finds that his paycheck doesn't stretch as far as it used to, even though his income hasn't changed. What effect is inflation likely having on Jamal's standard of living?

It’s increasing the value of his income

It’s lowering his standard of living

It’s improving his standard of living

Olivia wants to improve her overall financial health and increase her net worth. Which of the following actions would help her reach that goal?

WIthdraw money from your savings account.

Spend more than you make.

Pay off previous debts with your paycheck.

Ethan wants to make smart choices with his money so he can afford the things he needs without overspending. What strategy should he use to maximize his purchasing power?

Create and follow a budget to manage spending wisely

Only use credit cards for all purchases

Shop without comparing prices or looking for deals

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

Dining out at local restaurants

Loan payment on a new car

Postponing a purchase for a big-screen TV

Isaiah has a summer internship at a technology company and is paid $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?

His gross pay is $2,500 and net pay is $3,000

His gross and net pay are $3,000

His gross pay is $3,000 and net pay is $2,500

Which description is most accurate for a Zero-Based Budget?

You put every dollar of your net pay into a budget category each month

You spend your checking account balance down to $0 every month

You spend your saving account balance down to $0 every month

Which one of these expenses most likely represents a VARIABLE cost in someone's budget?

Electricity bill

Rent

Car insurance premium

What action corresponds to the advice "Pay yourself first?"

Wait until the end of the month to determine how much you have leftover to save

Set aside a fraction of your paycheck into a savings account before you start spending

Spend your regular paycheck on needs and wants but funnel any extra money into saving

Which of the following accurately describes the envelope budgeting strategy?

Putting cash for different spending categories into separate envelopes and only spending what's in each envelope

Regularly buying investments like stocks or bonds with a certain amount of money each month

Saving a small part of your income every week to buy something big at the end of the year

What is one concept from this unit that you believe would help you achieve financial health and success? Think about this concept and how it applies to your financial stability. Use any topic from budgeting.
a) Name the concept. (1 point)
b) Define the concept. (1 point)
c) Explain how the concept will promote your financial stability and health. (3 points)

Examples: Emergency Fund 50/20/30 Zero-based budget Net worth

Jordan is reviewing his finances to get a better understanding of his overall financial health. He decides to calculate his personal net worth. What step should Jordan take to calculate it accurately?

total liabilities - total assets

total assets + total liabilities

Subtract his total liabilities from his total assets

Maria is creating a monthly budget and wants to separate her fixed expenses from her variable ones. Which of the following would be considered a fixed expense?

gas

Rent

groceries

Carlos is reviewing his monthly spending and trying to cut back on unnecessary purchases. He decides to prioritize his needs over his wants. Which of the following items would typically be considered a need?

vacation trip

housing

A new car

After paying for his rent, groceries, utilities, and other basic needs, Marcus notices he still has some money left in his budget. What is the money he has left to spend on non-essential items called?

profit

net income

discretionary income

Aaliyah is tracking her monthly budget and wants to list all her cash inflows to see how much money she’s bringing in. Which of the following would be considered a cash inflow?

Rent payment she makes to her landlord

Money she withdraws from her savings

Her monthly salary from her job

Tyler is creating a personal balance sheet to keep track of his financial situation. He needs to list all of his assets. Which of the following would be considered an asset?

savings account

cell phone bill

credit card balance

Jasmine has $50 to spend and is deciding between buying a new jacket or going to a concert with friends. She chooses to buy the jacket. What is the value of what Jasmine gave up by making this choice?

Her disposable income

Her opportunity cost

) Her personal savings

Sophie is organizing her monthly budget and listing all the things she regularly pays for, such as transportation, groceries, and her internet bill. What are these items that require her to spend money called?

assets

expenses

Income

Noah created a monthly budget planning to earn $1,500 and spend $1,200. At the end of the month, he reviews his finances and realizes he actually earned $1,450 and spent $1,300. What is the difference between his planned and actual amounts called?

income

Discretionary income

Budget variance

The amount you budgeted to spend on food for June was $500.  The amount you actually spent was $455, resulting in a

$45 favorable variance

$55 favorable variance

$55 unfavorable variance

Tiana just accepted a job that pays her an annual salary of $18,000. She wants to create a monthly budget and needs to figure out how much income she will receive each month. Assuming she is paid evenly throughout the year, how much is her monthly income?

$1,000

$2,000

$1,500

Jalen works part-time and earns $118 each week. He wants to estimate how much he will earn in a full year if he works all 52 weeks. What is Jalen’s annual income?

$11,800

$5,900

$6,136

David’s financial advisor encourages him to create a monthly budget to track his income and expenses. However, David hesitates and says he doesn’t want to make a budget. Which of the following is a possible reason why David might choose not to create a budget?

It would help an individual meet his/her financial goals.

It would help an individual learn to manage his/her money.

It would help an individual learn to spend money uncontrollably.

Emma is reviewing her monthly spending to separate her fixed expenses from her variable ones. She notices that some costs change from month to month depending on her usage and lifestyle. Which of the following would be considered a variable expense?

car payment

entertainment

rent for an apartment that has a yearly lease

Logan is organizing his monthly budget and wants to identify which of his expenses stay the same each month. Which of the following would be considered a fixed expense?

food

utilities

rent for an apartment that has a yearly lease

Libby receives her paycheck and immediately sets aside $125 into her savings account before paying any of her bills or spending on other items. What is Libby doing by setting this money aside first?

She is paying herself first.

She is keeping the money safe.

She is paying her bills.

Regan has priced a Ipad at the local stores and has found that she has saved enough money to purchase one, but has decided to wait to make a purchase in hopes of getting a better deal. What trade-off has she made?

Opportunity Cost

Economic Choice

Net Worth

After Kena and Kia got married, they developed a plan on how to spend, save and invest their money so they can live a comfortable lifestyle, retire some day, and achieve their financial goals.  What process did they implement?

Personal Goals

Financial Planning

Retirement Planning

Ava is a high school student thinking about her future. She decides to set a goal that she can accomplish in the next two to five years. Which of the following would be considered a medium-term goal for Ava?

Go to a dance in a month

Planning for retirement

Saving for a car she wants to buy in two years

Each month, Jacob reviews his budget and notices that some of his bills stay exactly the same no matter what. Which type of cost is Jacob noticing?

Variable costs

Irregular costs

Fixed costs

Jordan is filling out a worksheet in his personal finance class. One of the questions asks him to list everything he owns that has monetary value, like his savings account, his laptop, and some stocks gifted by his grandparents. What are these items called?

opportunity cost

assets

fixed expenses

Samantha is calculating her financial health. She adds up everything she owns—like her car, savings account, and laptop—and then subtracts what she owes on her credit card and student loan. What is the difference between what Samantha owns and what she owes called?

Cash flow

Gross income

Net worth

Carlos wants to manage his money better, so he creates a plan that outlines how much he expects to earn (his income) and how he plans to spend (his expenses) and save that money each month. What is this type of plan called?

Net worth statement

Credit report

Budget

Alex is reviewing his financial situation and lists the money he still owes on his student loan, car loan, and credit card. What are these debts that Alex owes called?

assets

opportunity cost

liabilities

Each month, Maya notices that the amount she spends on groceries, gas, and electricity changes depending on her usage and lifestyle. What are these types of costs that can go up or down called?

Fixed expenses

Irregular expenses

Variable expenses

What is the net worth of the car

9495

6028.68

3466.32

Calculate the amount of Ron's current liabilities

6,113.69

85.01

50.01

Megan graduated from college 2 years ago and has been working as an Advertising Director. She has worked hard over the last 2 years to save money so that she could move towards the next stage of her life. She wants to purchase a home. She plans on meeting with her local banker so she has organized her current financial information for her meeting.   
Student Loan:  $25,000.00;   Savings Account: $10,000.00;   Savings Bonds: $5,000.00;                     Checking Account:   $15,000.00; Retirement Account:      $8,000.00                             
Which of Megan's financial items would be considered a liability?

Her student loan.

Her retirement account.

Her saving account.

Megan graduated from college 2 years ago and has been working as an Advertising Director. She has worked hard over the last 2 years to save money so that she could move towards the next stage of her life. She wants to purchase a home. She plans on meeting with her local banker so she has organized her current financial information for her meeting.   
Student Loan:  $25,000.00;   Savings Account: $10,000.00;   Savings Bonds: $5,000.00;                     Checking Account:   $15,000.00; Retirement Account:      $8,000.00       
What Would be the total of Megan's assets?

$30,000

$38,000

$33,000

Megan graduated from college 2 years ago and has been working as an Advertising Director. She has worked hard over the last 2 years to save money so that she could move towards the next stage of her life. She wants to purchase a home. She plans on meeting with her local banker so she has organized her current financial information for her meeting.   
Student Loan:  $25,000.00;   Savings Account: $10,000.00;   Savings Bonds: $5,000.00;                     Checking Account:   $15,000.00; Retirement Account:      $8,000.00                            
What is Megan's net worth?

$10,000

$17,000

$13,000

The Richardson's, Jill and Tim keep their financial records on their computer. They use a spreadsheet software to create a budget and keep their checkbook register. They also store their federal income tax forms electronically. Their financial records contain their social security number, their birth date, and their checking and savings account numbers.                      Which of the following is a benefit of electronic records for the Richardson's?

They can access information quickly.

They can store the files in a file cabinet.

They can't show their information to others.

Over the past year, prices for groceries, gas, and other everyday items have increased noticeably. Jamal finds that his paycheck doesn't stretch as far as it used to, even though his income hasn't changed. What effect is inflation likely having on Jamal's standard of living?

It’s increasing the value of his income

It’s lowering his standard of living

It’s improving his standard of living

Olivia wants to improve her overall financial health and increase her net worth. Which of the following actions would help her reach that goal?

WIthdraw money from your savings account.

Spend more than you make.

Pay off previous debts with your paycheck.

Ethan wants to make smart choices with his money so he can afford the things he needs without overspending. What strategy should he use to maximize his purchasing power?

Create and follow a budget to manage spending wisely

Only use credit cards for all purchases

Shop without comparing prices or looking for deals

Which of Emily and Blake's expenses would be classified as a VARIABLE EXPENSE?

car insurance

utilities

car payment

Which of Emily and Blake's expenses would be classified as a FIXED EXPENSE?

personal/care laundry

utilities

student loans

What is Emily and Blake's BUDGET VARIANCE (Income-Total Expenses)? Include Savings as part of expenses as they are paying themselves first.

$0.00 variance

positive $1520 variance

negative $760 variance

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

Dining out at local restaurants

Loan payment on a new car

Postponing a purchase for a big-screen TV

Isaiah has a summer internship at a technology company and is paid $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?

His gross pay is $2,500 and net pay is $3,000

His gross and net pay are $3,000

His gross pay is $3,000 and net pay is $2,500

Which description is most accurate for a Zero-Based Budget?

You put every dollar of your net pay into a budget category each month

You spend your checking account balance down to $0 every month

You spend your saving account balance down to $0 every month

Which one of these expenses most likely represents a VARIABLE cost in someone's budget?

Electricity bill

Rent

Car insurance premium

What action corresponds to the advice "Pay yourself first?"

Wait until the end of the month to determine how much you have leftover to save

Set aside a fraction of your paycheck into a savings account before you start spending

Spend your regular paycheck on needs and wants but funnel any extra money into saving

Which of the following accurately describes the envelope budgeting strategy?

Putting cash for different spending categories into separate envelopes and only spending what's in each envelope

Regularly buying investments like stocks or bonds with a certain amount of money each month

Saving a small part of your income every week to buy something big at the end of the year

What is the net worth of the car

9495

6028.68

3466.32

Calculate the amount of Ron's current liabilities

6,113.69

85.01

50.01

Which of Emily and Blake's expenses would be classified as a VARIABLE EXPENSE?

car insurance

utilities

car payment

Which of Emily and Blake's expenses would be classified as a FIXED EXPENSE?

personal/care laundry

utilities

student loans

What is Emily and Blake's BUDGET VARIANCE (Income-Total Expenses)? Include Savings as part of expenses as they are paying themselves first.

$0.00 variance

positive $1520 variance

negative $760 variance