Chapter 16 - Intro to Business (Money Management and Financial Planning)

Question 1

Savings accounts and a home are examples of

Accepted Answer

assets

Question 2

What is your net worth if you have assets of $12,500 and liabilities of $9,200?

Accepted Answer

$3,300

Question 3

The most uncertain aspect of the budgeting process involves

Accepted Answer

estimating variable expenses

Question 4

Costs that occur regularly and are for the same amount each time are called _____.

Accepted Answer

fixed expenses

Question 5

A major purpose of a budget is to

Accepted Answer

achieve financial goals

Question 6

An amount that reduces taxable income is ______.

Accepted Answer

tax deduction

Question 7

A charge imposed by a government to finance public services is a(n) ____.

Accepted Answer

tax

Question 8

A common source of retirement income is

Accepted Answer

pensions

Question 9

A tax deduction for the taxpayer, a spouse, and each dependent is called a(n) ____.

Accepted Answer

exemption

Question 10

The amount of money you plan to use for a certain budget category is called a(n) _____.

Accepted Answer

allowance

Question 11

You calculate you owed taxes of $354 and had $504 withheld from your pay. Refund/amount owed ?

Accepted Answer

Refund of $150

Question 12

A difference between actual spending and planned spending is called a(n) ______.

Accepted Answer

budget variance

Question 13

The difference between a person's or family's assets and liabilities is called _____.

Accepted Answer

net worth

Question 14

An amount subtracted directly from taxes owed is a(n) _____.

Accepted Answer

tax credit

Question 15

A long-term financial goal usually involves

Accepted Answer

using the services of a financial planner

Question 16

Items of value are called _____.

Accepted Answer

assets

Question 17

A payment for rent represents

Accepted Answer

a cash outflow

Question 18

What is the value of your assets if your liabilities are $7,500 and net worth is $12,250?

Accepted Answer

$19,750

Question 19

A tax on earnings would be an _____ tax.

Accepted Answer

income

Question 20

Living costs involving differing amounts each time are called _____.

Accepted Answer

variable expenses

Questions 20