WGU D363 COMPREHENSIVE QUESTIONS AND
ANSWERS SET A+
✔✔Lucas wants to work on improving his spending habits to be financially successful.
What plan does Lucas need to follow to achieve his financial goals?
Net worth statement
Estate plan
Investment plan
Budget - ✔✔Correct! A budget is a paper or electronic document used to record both
planned and actual income and expenses over a period of time.
✔✔What is used to estimate monthly income and expenses as part of the budgeting
process?
Revolving savings fund
Cash-flow calendar
Intake-output calendar
Discretionary expenses funds - ✔✔Correct! A cash-flow calendar includes estimates for
monthly income and expenses.
✔✔William just created a budget and is concerned that there's so little money left over
at the end of the month. He wants to cut his spending to increase the money left over. -
✔✔Correct! Cutting power to the TV and cable box when they are not in use could save
$10 a month.
Correct! A programmable thermostat can save up to 15% off cooling and heating bills.
✔✔Charlotte wants to avoid overspending in any category of her budget.
What ensures proper oversight over personal spending to keep each category in check?
Cash-flow calendars
Budget controls
Discretionary reporting
Long-term controls - ✔✔Correct! Budget controls, such as tracking what you spend and
budgeting for shopping trips, are techniques of planned spending that help you maintain
control over personal spending so that those planned amounts are not exceeded.
, ✔✔Sophia is creating a personal budget. She starts by listing her monthly income and
expenses.
Which financial statement did Sophia create?
Cash-flow statement
Net worth
Financial ratio
Balance sheet - ✔✔The cash-flow statement is a summary of income and expenses for
a given period of time.
✔✔Malik is reviewing a list of assets and liabilities. He uses the information shown in
the table to evaluate his net worth.
Total Assets$45,000
Total Liabilities$22,000
Net Worth$23,000
Which financial statement is Malik reviewing?
Income and expense statement
Cash-flow statement
Cash equivalent statement
Balance sheet - ✔✔A balance sheet provides a quick view of one's assets, liabilities,
and net worth.
✔✔Diego is reviewing his personal budget to see where he can control his spending so
he can save more money each month.
Which type of expenses would Diego be reviewing?
Fixed
Variable
Recurring
Surplus - ✔✔Variable expenses are those over which an individual has control. This is
where one can look to save money each month.
✔✔Fatima noticed that she consistently has $300 left over each month, so she wants to
start saving money. She researches the different types of accounts she could open.
Fatima decides to open a money market account.
Why would Fatima choose to open a money market account over a traditional savings
account?
A money market pays a higher interest rate.
A traditional savings account requires a high minimum balance.
A money market is covered by the Federal Deposit Insurance Corporation (FDIC).
Traditional savings account deposits are invested into financial markets. - ✔✔A money
market account pays a higher interest rate than traditional savings accounts.
ANSWERS SET A+
✔✔Lucas wants to work on improving his spending habits to be financially successful.
What plan does Lucas need to follow to achieve his financial goals?
Net worth statement
Estate plan
Investment plan
Budget - ✔✔Correct! A budget is a paper or electronic document used to record both
planned and actual income and expenses over a period of time.
✔✔What is used to estimate monthly income and expenses as part of the budgeting
process?
Revolving savings fund
Cash-flow calendar
Intake-output calendar
Discretionary expenses funds - ✔✔Correct! A cash-flow calendar includes estimates for
monthly income and expenses.
✔✔William just created a budget and is concerned that there's so little money left over
at the end of the month. He wants to cut his spending to increase the money left over. -
✔✔Correct! Cutting power to the TV and cable box when they are not in use could save
$10 a month.
Correct! A programmable thermostat can save up to 15% off cooling and heating bills.
✔✔Charlotte wants to avoid overspending in any category of her budget.
What ensures proper oversight over personal spending to keep each category in check?
Cash-flow calendars
Budget controls
Discretionary reporting
Long-term controls - ✔✔Correct! Budget controls, such as tracking what you spend and
budgeting for shopping trips, are techniques of planned spending that help you maintain
control over personal spending so that those planned amounts are not exceeded.
, ✔✔Sophia is creating a personal budget. She starts by listing her monthly income and
expenses.
Which financial statement did Sophia create?
Cash-flow statement
Net worth
Financial ratio
Balance sheet - ✔✔The cash-flow statement is a summary of income and expenses for
a given period of time.
✔✔Malik is reviewing a list of assets and liabilities. He uses the information shown in
the table to evaluate his net worth.
Total Assets$45,000
Total Liabilities$22,000
Net Worth$23,000
Which financial statement is Malik reviewing?
Income and expense statement
Cash-flow statement
Cash equivalent statement
Balance sheet - ✔✔A balance sheet provides a quick view of one's assets, liabilities,
and net worth.
✔✔Diego is reviewing his personal budget to see where he can control his spending so
he can save more money each month.
Which type of expenses would Diego be reviewing?
Fixed
Variable
Recurring
Surplus - ✔✔Variable expenses are those over which an individual has control. This is
where one can look to save money each month.
✔✔Fatima noticed that she consistently has $300 left over each month, so she wants to
start saving money. She researches the different types of accounts she could open.
Fatima decides to open a money market account.
Why would Fatima choose to open a money market account over a traditional savings
account?
A money market pays a higher interest rate.
A traditional savings account requires a high minimum balance.
A money market is covered by the Federal Deposit Insurance Corporation (FDIC).
Traditional savings account deposits are invested into financial markets. - ✔✔A money
market account pays a higher interest rate than traditional savings accounts.
