BUDGETING POST TEST QUESTIONS AND ANSWERS | BUDGETING STUDY GUIDE
& PRACTICE TEST 2026/2027
Expenses that remain the same from month to month - ANS ✔✔Fixed
Eating out is a: - ANS ✔✔Discretionary expense
Occurs when money is withdrawn from a bank account and the available balance goes below zero. - ANS
✔✔Overdraft
An item that is bought without previous planning or consideration of the long-term effects. - ANS
✔✔Impulse purchase
The number-one cause of divorce in North America today is stress and disagreements over money. - ANS
✔✔True
A summary of all the income and outgo over a certain time period. - ANS ✔✔Cash flow statement
Setting up automatic account transfers is the easiest way to build your savings for your emergency fund
or large purchases. - ANS ✔✔True
Which of the following is a consequence of overdrawing your checking account? - ANS ✔✔All of the
above
The zero-based budget is the best method of budgeting because: - ANS ✔✔The zero-based budget
ensures that every dollar you make is assigned a specific purpose
Doing a budget does not: - ANS ✔✔Make overspending more likely
Which of the following is something that a typical millionaire would do? - ANS ✔✔Spend less money
than he or she makes
Series of envelopes that are divided into categories and are used to store cash for planned monthly
expenses. - ANS ✔✔Envelope system
Writing and following a zero-based budget will help you avoid overspending and impulse purchases. -
ANS ✔✔True
A debit card cannot be used for online purchases. - ANS ✔✔False
If you write a zero-based budget every month, it is not necessary to reconcile your account. - ANS
✔✔False
ʺPay yourself firstʺ means you should assign a portion of your income to saving and investing every
month. - ANS ✔✔True
& PRACTICE TEST 2026/2027
Expenses that remain the same from month to month - ANS ✔✔Fixed
Eating out is a: - ANS ✔✔Discretionary expense
Occurs when money is withdrawn from a bank account and the available balance goes below zero. - ANS
✔✔Overdraft
An item that is bought without previous planning or consideration of the long-term effects. - ANS
✔✔Impulse purchase
The number-one cause of divorce in North America today is stress and disagreements over money. - ANS
✔✔True
A summary of all the income and outgo over a certain time period. - ANS ✔✔Cash flow statement
Setting up automatic account transfers is the easiest way to build your savings for your emergency fund
or large purchases. - ANS ✔✔True
Which of the following is a consequence of overdrawing your checking account? - ANS ✔✔All of the
above
The zero-based budget is the best method of budgeting because: - ANS ✔✔The zero-based budget
ensures that every dollar you make is assigned a specific purpose
Doing a budget does not: - ANS ✔✔Make overspending more likely
Which of the following is something that a typical millionaire would do? - ANS ✔✔Spend less money
than he or she makes
Series of envelopes that are divided into categories and are used to store cash for planned monthly
expenses. - ANS ✔✔Envelope system
Writing and following a zero-based budget will help you avoid overspending and impulse purchases. -
ANS ✔✔True
A debit card cannot be used for online purchases. - ANS ✔✔False
If you write a zero-based budget every month, it is not necessary to reconcile your account. - ANS
✔✔False
ʺPay yourself firstʺ means you should assign a portion of your income to saving and investing every
month. - ANS ✔✔True
