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

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?

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?

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?

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?

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?

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?

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?

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?

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?

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

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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?

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

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?

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

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?

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

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

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

Which of the following accurately describes the envelope budgeting strategy?

Calculate the amount of Ron's current liabilities

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

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