SPG REVIEW #2
Which of the following defines a budget? -A plan to match spending with saving -A plan to increase income -A plan to match expressed income with expected outflow -Something that will decrease with your wants and needs
A plan to match expected income with expected outflow
Mary is starting her first full time job and wants to make sure she doesn't overspend; as she works on creating her budget the first thing she should do is -estimate her expenses -estimate her total expected income for a certain period of time -determine all her wants and needs -decide how much of her income she wants to save
Estimate her total expected income for a certain period of time
The first step in preparing a budget is -decide how much of your income you want to save -estimate your expenses -estimate total expected income for a certain time period -balance your budget
Estimate total expected income for a certain time period
A house payment, car payment and student loan payments are examples of -income -fixed expenses -variable expenses -investments
Fixed expenses
When you assets are greater than you liabilities, you are said to be -responsible -insolvent -solvent -rich
Solvent
The most common purpose for a net worth statement is -fire loss proof -damage report -loan or credit application -employment application
Loan or credit application
The amount remaining after the value of all liabilities is subtracted from the value of all assets is -the fair market value of assets - owners equity -net assets -net liabilities
Owner's equity
A personal property inventory is most commonly used for -Proof of loss from fire, theft, or property damage -a car loan application - credit card application -an employment application
Proof of loss from fire, theft, or property damage
Most financial experts agree that families should set aside at least _________ percent of their disposable income each pay period 10 15 20 25
10
Greg is having trouble meeting his budget, what should he look at first to determine where he can save money? - investing -fixed expenses - savings -variable expenses
Variable expenses
Lunches, medical bills, personal care items, and clothing are all examples of -income -fixed expenses -variable expenses -investments
Variable expenses
Which of these is a liability? -car -car loan -stereo -savings account
car loan
The net worth statement is most often stated as - assets = liabilities -cash = assets - assets = liabilities + owners equity -liabilities + assets = owners equity
Assets = liabilities + owners equity
An example of an asset is _______ -credit card debt -home -loan from rich uncle -car loan
Home
A zero based budget means: -assets = liabilities + equity -Net income = fixed expenses -income = savings + expenses -Income = savings - expenses
Income = savings + expenses
Jim is starting to Olán for his future and wants to create a zero based budget. To do this he needs to come up with a plan that ensures his -net worth = assets - liabilities - income = savings + expenses - net income = fixed expenses - income = expenses
Income = savings + expenses
