Personal Finance - Ch. 3: Budgeting

Question 1

the act of matching your bank statement with your checkbook

Accepted Answer

reconcile

Question 2

Which is not a consequence of creating a budget?

Accepted Answer

make overspending more likely

Question 3

The zero based budget is the best method of budgeting because:

Accepted Answer

the zero based budget ensures that every $ is used purposely

Question 4

Car repairs are a

Accepted Answer

intermittent expense

Question 5

An item that is bought without previous consideration

Accepted Answer

impulse purchase

Question 6

Which of the following is something that a typical millionaire would do?

Accepted Answer

spend less money than he or she makes

Question 7

Percentage of Americans living paycheck to paycheck

Accepted Answer

70

Question 8

Spending more $ than you have in your account

Accepted Answer

bounced check, overdraft

Question 9

which of the following is not a record keeping feature you could expect from your bank?

Accepted Answer

customer service reconciles your account for you

Question 10

If you follow your written budget, you can eliminate

Accepted Answer

guilt & crisis management., overspending.

Question 11

Which of the following is a consequence of overdrawing your checking account?

Accepted Answer

interest is earned, bounced check fee from the store, stress from money mismanagement

Question 12

Groceries are a:

Accepted Answer

variable expense

Question 13

Which of the following statements is false?

Accepted Answer

a budget is meant to summarize spending and saving in a year

Question 14

When your dog steps in a trap and you end up spending $324 at the emergency vet, that is a(n)

Accepted Answer

intermittent expense., terrifying afternoon.

Question 15

A written cash flow plan

Accepted Answer

budget

Question 16

Your monthly budget should include

Accepted Answer

variable expenses, discretionary expenses, fixed expenses

Question 17

Which of the following is NOT a guideline for budgeting with irregular income?

Accepted Answer

The budget should be done at the end of the month

Question 18

Rent is a

Accepted Answer

fixed expense.

Question 19

Which of the following account records would have the most current balance?

Accepted Answer

your own account register

Question 20

Eating out is a

Accepted Answer

discretionary expense.

Questions 20