What is an expense report?

A detailed account of spending for reimbursement

What is the difference between wants and needs?

Needs are essential; wants are non-essential desires.

Why is it important to track your spending?

To understand your financial habits

Money borrowed that must be repaid

What role does a financial advisor play?

To provide guidance for financial planning

What does "fixed expenses" refer to?

Regular payments that do not change

What is a credit score?

A number that indicates your creditworthiness

Which phrase best defines "investing"?

Putting money into assets for future growth

What is disposable income?

Money left after all expenses are paid

hat is the 50/30/20 rule?

Budgeting framework dividing income into needs, wants, and savings.

portion of earnings subject to taxation after deductions

What is a financial goal?

A target amount you wish to save or earn

What is a "savings account" primarily used for?

Storing money while earning interest

What is "financial planning"?

Systematically allocating income for future goals

What does "financial literacy" mean?

Knowledge about managing finances effectively

What does "diversifying investments" imply?

Spreading investments across different assets

What is the purpose of a spending diary?

To log all expenses for analysis

What is a retirement account?

An account designated for saving for retirement

A document that shows income earned

What is an emergency fund?

A reserve for unexpected expenses

What is impulse buying?

Unplanned, spontaneous purchases

What is a major disadvantage of credit cards?

They can lead to debt if misused

What does "total cost of ownership" include?

Purchase price plus recurring costs (maintenance, insurance)

interest calculated on the initial principle and accumulated interest

What does it mean to live within your means?

You spend less than or equal to your income

Something that can provide future economic benefits

studbud

unit three earning and spending

46 termsStudBud Administration

Imported from external platform

Flashcards46 cardsFPractice quizPHost liveL

Questions 46

Answers

1
What is an expense report?
A summary of savings
A detailed account of spending for reimbursement
A report of debts owed
An assessment of income
2
What is the difference between wants and needs?
Needs can be ignored; wants cannot.
Needs are essential; wants are non-essential desires.
Wants are always more expensive than needs.
There are no differences; they mean the same.
3
Why is it important to track your spending?
To impress friends
To understand your financial habits
To show off your wealth
To ensure you can buy more
4
What is a loan?
Money you earn
Money borrowed that must be repaid
A gift from friends
Money saved for the future
5
a contract agreement between a borrower and a lender?
credit
net income
unsecured credit
credit score
6
Which is a common budgeting method?
Zero-based budgeting
10/20/70 Rule
Spending without limits
20/30/50 Rule
7
What role does a financial advisor play?
to increase spending
To provide guidance for financial planning
To manage day-to-day expenses
To offer loans
8
total earning from all sources before paying taxes
grows income
credit
credit score
bankruptcy
9
What does "fixed expenses" refer to?
Regular payments that do not change
Costs that change every month
Optional purchases
Savings contributions
10
What is a credit score?
The total amount of your debts
A measure of your spending habits
Your income level
A number that indicates your creditworthiness
11
Which phrase best defines "investing"?
Saving money in a savings account
Spending money quickly
Putting money into assets for future growth
Donating money to charities
12
What is a cash flow statement?
A record of payments received and made
A plan for future income
A report on spending only
An investment portfolio
13
What is disposable income?
Money that is invested
Money left after all expenses are paid
Money that is saved for retirement
Money used for emergency funds
14
hat is the 50/30/20 rule?
A way to calculate taxes.
A method for investing in stocks.
A savings strategy for emergencies.
Budgeting framework dividing income into needs, wants, and savings.
15
taxable income?
a loan that is obtained without the use of collateral
portion of earnings subject to taxation after deductions
a legal process for gaining relief from debt
a contract agreement between a borrower and a lender
16
What is a financial goal?
A hobby that costs money
An amount of money you spend monthly
A target amount you wish to save or earn
A luxury item you want to purchase
17
What is a "savings account" primarily used for?
Investing in stocks
Storing money while earning interest
Buying luxury items
Daily expenses
18
What is "financial planning"?
Ignoring savings
Creating a random spend plan
Systematically allocating income for future goals
Only focusing on expenses
19
What does "financial literacy" mean?
Understanding complex financial terms only
The ability to earn money
Having a high income
Knowledge about managing finances effectively
20
What can help improve your credit score?
Accumulating debt
Paying bills on time
Late payments
Ignoring credit reports
21
Which of the following is a variable expense?
Rent
Utility bill
Mortgage payment
Movie tickets
22
Which is an example of passive income?
Rental income from property
A commission
A salary from a job
Hourly wages
23
What does "diversifying investments" imply?
Investing only in real estate
Avoiding investments altogether
Investing all money in one stock
Spreading investments across different assets
24
What is the purpose of a spending diary?
For entertainment purposes
To log all expenses for analysis
To keep track of income only
To plan for investments
25
amount of earning remaining after taxes and deductions
tax income
taxable income
Net income
interest
26
What is a retirement account?
A bank account for daily expenses
A fund for vacations
An unregulated savings method
An account designated for saving for retirement
27
What type of tax is deducted from your paycheck?
Property Tax
Sales Tax
capital gains tax
Income Tax
28
a payment made for the use of borrowing money?
revolving or open-end credit
unsecured credit
interest
revolving or open-end credit –
29
What is a paycheck?
A summary of all expenses
A document that shows income earned
all of the above
A report of savings
30
Which type of account typically earns the highest interest?
Checking Account
Savings Account
Money Market Account
Certificate of Deposit
31
What is an emergency fund?
A reserve for unexpected expenses
A fund for retirement
Money given to friends
Money used for vacations
32
What is impulse buying?
Buying only essentials
Shopping during sales
Planning purchases ahead of time
Unplanned, spontaneous purchases
33
Which of these is an example of a "want"?
Groceries
Insurance
Rent
New smartphone
34
What does "saving for a goal" help you achieve?
Less money in the bank
More debt
Financial responsibility
Impulse buying
35
What is an "interest rate"?
The cost of borrowing money
The percentage of income earned
The amount spent on purchases
The total profit from investments
36
If you have a negative cash flow, what does that mean?
You are saving money
You are spending more than you earn
Your expenses are decreasing
Your income is increasing
37
What is a major disadvantage of credit cards?
They offer rewards
They can help build credit
They provide safety for purchases
They can lead to debt if misused
38
What does "debt" represent?
Savings accumulated
Income you gain
Money you owe
Assets you own
39
Which of the following is NOT a type of credit?
Credit cards
Paychecks
Unsecured loans
Secured loans
40
What does "total cost of ownership" include?
Discounts received
Tax refunds
Initial purchase price only
Purchase price plus recurring costs (maintenance, insurance)
41
compound interest
total earning from all sources before paying taxes
a secured loan that is obtained by offering an asset as collateral
a legal process for gaining relief from debt
interest calculated on the initial principle and accumulated interest
42
What does it mean to live within your means?
You only eat out
You spend less than or equal to your income
You never save money
You buy everything on credit
43
Which of the following is a smart saving strategy?
Spending on luxury items first
Automating savings transfers
Only saving what's left over
Ignoring budget limits
44
What does APR stand for in finance?
Annual Payment Rate
Annual Percentage Rate
Average Payment Rate
Average Percentage Rate
45
Which of the following is a consequence of overspending?
Debt accumulation
Increased savings
Enhanced credit score
More disposable income
46
What is an "asset"?
Something that can provide future economic benefits
Anything that you owe
A type of income
Money spent on luxuries

unit three earning and spending Flashcards | StudBud