CH 2 ACCTG 45

Which of the following situations describes a person who could be insolvent?

Assets $40,000; liabilities $55,000

All of the following are fixed expenses except:

Utilities.

How long should you keep your most current will?

permanently

Which of the following is a deduction to determine take-home pay?

sociial secuty taxes

When creating a budget, it is important to:

"Pay yourself first" by setting aside savings before other expenses are budgeted.

Rebecca Wilson budgeted $1,200 for housing and utilities in July. She actually spent $1,160. What is her budget variance?

$40 surplus

When creating a budget, which of the following statements is true?

Numbers in the budget are estimates.

Which of the following is NOT a main purpose of a budget?

It allows you to spend your money without financial worry.

After having established a spending plan, it is important to:

Keep track of your actual income and expenses.

Discretionary income equals:

Money left over after paying for housing, food, and other necessities.

A personal balance sheet reports:

Items owned, amounts owed, and net worth.

The main purpose of a personal financial statements is to:

Achieve all of the choices.