personal finances chapter 2

The difference between the amount budgeted and the actual amount received or spent is called the a Budget variance. b Cash outflow. c Income. d Cash inflow. e Variable expense.

Budget variance

An example of a variable expense is a(n) a Mortgage or rent payment. b Installment loan payment. c Monthly train ticket for commuting to work. d Monthly allocation for life insurance. e Electric bill.

Electric bill

Which of the following is most correct? a Rare coins and stamps belong in a safe deposit box. b A marriage certificate should be kept in a home file. c W-2s for tax records belong in a safe deposit box. d A current budget belongs in your safe deposit box. e Adoption papers belong in a home file.

Rare coins and stamps belong in a safe deposit box.

All of the following are sources of income except a Interest earned on savings b Commissions c Dividends d Salary e Social Security taxes

Social Security taxes

Which of the following appears as a cash outflow on a cash flow statement? a Liquid assets b Variable expenses c Net worth d Personal possessions e Real estate assets

Variable expenses

A cash flow statement uses this equation: Total cash received during the time period - Cash outflows during the time period = Cash surplus (or deficit). True False

true