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Finance Ch 3 Review...Budgeting Flashcards | StudBud
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Finance Ch 3 Review...Budgeting
Finance Ch 3 Review...Budgeting
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#personalfinance #money
Flashcards
35 cards
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Practice quiz
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Questions
35
Answers
1
Percentage of Americans living paycheck to paycheck....
70%
50%
25%
40%
2
Which of the following is NOT a record-keeping feature you could expect from your bank?
An account register
A monthly account statement
Customer service reconciles your account for you
A reconciliation sheet
3
A summary of all the income and outgo over a certain time period
Cash flow statement
budget
4
If you write a zero-based budget every month, it is not necessary to reconcile your account.
False
True
5
The following are guidelines for budgeting with an irregular income except...
Budgeting w/ irregular income is the same w/ regular income.
Prioritize the list in order of importance.
Spend your money all the way down the list.
Make a list of all of your expenses for the month ahead.
6
An item that is bought without previous planning or consideration of the long-term effects
Impulse purchase
Sale item
7
Expenses that remain the same from month to month
Fixed
Variable
8
ʺPay yourself firstʺ means you should assign a portion of your income to saving & investing.
True
False
9
Which of the following is a consequence of overdrawing your checking account?
All
Stress from money mismanagement
Overdraft Fee from your bank
Bounced check fee from the store
10
Rent is a....
Discretionary expense
Fixed expense
Variable expense
Intermittent expense
11
Your own record of all your transactions
Check register
Account statement
12
The number-one cause of divorce in North America today is stress and disagreements over money.
False
True
13
Having more than 1 bank account is never a good idea since it can complicate money management.
True
False
14
Non-essential expenses
Discretionary
Intermittent
15
Eating out is a...
Fixed expense
Intermittent expense
Discretionary expense
Variable expense
16
A cash flow plan that assigns an expense to every dollar of your income
Zero-based budget
Zero-spending plan
17
Which of the following is something that a typical millionaire would do?
Lease a new car
Replace things that are not broken
Spend less money than he or she makes
Carry debt
18
Your monthly budget should include:
Discretionary expenses
Variable expenses
All
Fixed expenses
19
A debit card cannot be used for online purchases.
True
False
20
Online bill pay allows you to make payments without having to write and mail a check.
True
False
21
The zero based budget is the best method of budgeting because...
Allows less money for wants
Requires discipline
Ensures that every dollar you make is assigned a purpose
Less complicated than other types
22
Budgeting is crucial to your financial success.
False
True
23
Following a zero-based budget will help you avoid overspending and impulse purchases.
True
False
24
Series of envelopes that are divided into categories for planned monthly expenses
Check carbon
Envelope system
25
Car repairs are a...
Intermittent expense
Fixed expense
Discretionary expense
Variable expense
26
To match your bank statement with your checkbook
Cash flow plan
Reconcile
27
Groceries are a...
Fixed expense
Intermittent expense
Variable expense
Discretionary expense
28
The envelope system works great for managing spending.
True
False
29
A written budget removes what from your finances?
Management by crisis
Guilt
All
Overspending
30
Setting up automatic account transfers is a way to build your savings & emergency fund.
True
False
31
Which of the following account records would have the most current balance?
All
Your monthly bank statement
Account balance statement from ATM
Your own account register
32
A written cash flow plan
budget
personal finance
33
Doing a budget does not:
Make your money go further
Show if you are overspending in an area
Remove guilt and shame sometimes associated with a purchase
Make overspending more likely
34
Which of the following statements is false?
A budget summarizes the saving and spending over the year.
A cash flow statement summarizes all of the income and outgo
A budget is a written plan for saving and spending.
Cash flow statement is reflective of what has taken place.
35
Occurs when money is withdrawn from a bank account and the available balance goes below zero
Reconcile
Overdraft
