FINANCE CH 2 TEST QUESTIONS WITH CORRECT ANSWERS

FINANCE CH 2 TEST QUESTIONS WITH
CORRECT ANSWERS

budget gg- ggAnswer gga ggwritten ggplan ggfor gggiving, ggsaving, ggand ggspending

income gg- ggAnswer ggmoney ggreceived ggfrom ggwork, gga gggift, ggor gginvestments

fixed ggexpense gg- ggAnswer ggexpense ggthat ggremains ggthe ggsame ggmonth ggto
ggmonth gg
ex. gg
retirement
child ggsponsorship

variable ggexpense gg- ggAnswer ggexpense ggthat ggvaries ggin ggdollar ggamount ggfrom
ggmonth ggto ggmonth ggbut ggcan ggaccept ggto gghave ggevery ggmonth gg
ex.
utilities gg
gas

intermittent ggexpense gg- ggAnswer ggexpense ggthat ggoccurs ggat ggvarious ggtimes
ggthroughout ggthe ggyear ggand ggtends ggto ggbe gglarge gg
ex.
new ggtires
insurance

discretionary ggexpense gg- ggAnswer ggexpense ggfor ggthings ggyou ggdon't ggneed
ex.
eating ggout
clothes

Zero-Based ggBudget gg- ggAnswer ggA ggcash ggflow ggplan ggthat ggassigns ggan ggexpense
ggto ggevery ggdollar ggof ggyour ggincome, gg
total ggincome-total ggexpenses=zero

net ggincome gg- ggAnswer ggwhat gga ggperson ggearns ggafter ggpayroll ggtaxes ggand ggother
ggdeductions ggare ggtaken ggout; gg(take gghome ggmoney)