CHAPTER 2: BUDGETING BASICS CHAPTER REVIEW QUESTIONS AND ANSWERS |
BUDGETING BASICS STUDY GUIDE & PRACTICE TEST 2026/2027
Taxes and withholds impact your _________, which is the amount of money you take home. - ANS
✔✔Net income
The cost of groceries and gas is considered a _______. - ANS ✔✔variable expense
To budget with a _________, prioritize expenses for most to least important so your most important
expenses are covered first. - ANS ✔✔Irregular income
A _______ needs to be evaluated in light of your other expenses for the month. - ANS ✔✔discretionary
expense
A _________ stays the same from month to month. - ANS ✔✔fixed expense
A ________ should account for fixed, variable, intermittent, and discretionary expenses based on
income. - ANS ✔✔zero-based budget
A budget doesn't tell you not to spend. A budget actually - ANS ✔✔Tells you what to spend it on
The envelope system is especially helpful for expenses like______ - ANS ✔✔Eating out, groceries, etc
The three priorities in your budget, after listing income, are _______ - ANS ✔✔giving, saving, and
spending
Specific categories are important to consider when creating a budget so you can_____ - ANS
✔✔Organize spending
What is it called when you make money on the percentage of the total sales you make? - ANS
✔✔commission
What is not a type of discretionary expense? - ANS ✔✔Depreciation
What's your biggest wealth-building tool? - ANS ✔✔Income
When you're creating your monthly budget, what's the first priority under "expenses"? - ANS ✔✔Giving
If you approach money with a generous spirit, you'll be _________ - ANS ✔✔More grateful
What will tracking expenses help you do? - ANS ✔✔stick to a budget, catch errors, make adjustments
What's a zero-based budget? - ANS ✔✔It is when all your money has a job.
BUDGETING BASICS STUDY GUIDE & PRACTICE TEST 2026/2027
Taxes and withholds impact your _________, which is the amount of money you take home. - ANS
✔✔Net income
The cost of groceries and gas is considered a _______. - ANS ✔✔variable expense
To budget with a _________, prioritize expenses for most to least important so your most important
expenses are covered first. - ANS ✔✔Irregular income
A _______ needs to be evaluated in light of your other expenses for the month. - ANS ✔✔discretionary
expense
A _________ stays the same from month to month. - ANS ✔✔fixed expense
A ________ should account for fixed, variable, intermittent, and discretionary expenses based on
income. - ANS ✔✔zero-based budget
A budget doesn't tell you not to spend. A budget actually - ANS ✔✔Tells you what to spend it on
The envelope system is especially helpful for expenses like______ - ANS ✔✔Eating out, groceries, etc
The three priorities in your budget, after listing income, are _______ - ANS ✔✔giving, saving, and
spending
Specific categories are important to consider when creating a budget so you can_____ - ANS
✔✔Organize spending
What is it called when you make money on the percentage of the total sales you make? - ANS
✔✔commission
What is not a type of discretionary expense? - ANS ✔✔Depreciation
What's your biggest wealth-building tool? - ANS ✔✔Income
When you're creating your monthly budget, what's the first priority under "expenses"? - ANS ✔✔Giving
If you approach money with a generous spirit, you'll be _________ - ANS ✔✔More grateful
What will tracking expenses help you do? - ANS ✔✔stick to a budget, catch errors, make adjustments
What's a zero-based budget? - ANS ✔✔It is when all your money has a job.
