Budgets & Records
Spreadsheet
A computer program that organizes data in columns and rows and can perform calculations using the data is called a
True
A court will not require a person to perform an agreed-upon act if it is illegal.
True
A net worth statement will be useful when you apply for a loan or credit.
False
A payee is a person who promises to pay the debt of another person.
Maker
A person who creates and signs the promissory note and agrees to pay it on a certain date is called the
False
A set of goals for spending, saving, and investing the money you receive is called a budget.
False
An express contract is legally binding, but an implied contract is not.
True
Before you prepare a budget, it is a good idea to keep track of your income and expenses for a month or two.
True
If a person signs a contract because he or she felt threatened to do so, a genuine agreement does not exist.
Expenses + Savings = Earnings + Borrowing
In a balanced budget,
False
In the short-run, fixed costs are easier to change than variable costs.
50 To 60 Percent Of Net Pay
Most financial experts recommend that a family have fixed expenses of no more than
True
One big advantage of computerized record keeping is that information can be updated quickly and easily.
False
Only people with considerable wealth need to create a personal record keeping system.
3
The IRS has the legal right to audit your tax returns and supporting records for ___ years from the date of filing.
False
The competence or legal ability of a person to enter a contract is called consideration.
True
When assets are greater than liabilities, you are said to be solvent.
Making A Counteroffer
When one person makes an offer and another person changes it, the second person is
Disposable Income
When preparing a budget, you need to focus mostly on your
A Contract Involving The Sale Of A Farmhouse
Which of the following contracts must be signed to be legally binding?
Grocery Bill
Which of the following is a variable expense?
A Checking Account
Which of the following would be considered an asset?
False
You should always create a monthly budget—weekly or biweekly budgets tend to be inaccurate.
True
You should never sign a contract until you read and understand all its terms.
True
the two elements to consider in budgeting and planning are your income and your expenses.
