Budgeting Pre-Test

17 October 2022
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10 test answers

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question
From what part of income should someone take savings?
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what otherwise would be discretionary income
question
Paying for transportation to and from work is an example of
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a variable expense.
question
When should fixed and variable monthly budgeted expenses first be planned?
answer
at the start of each month
question
To create a balanced budget, one must make sure to
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spend less than or equal to income.
question
Why might variable expenses change a great deal at different times of year?
answer
Heating and cooling costs might vary considerably.
question
What effect would a tax increase have on income?
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It would not affect gross income.
question
To change gross income, someone would need to
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earn more money.
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What is most likely the reason variable expenses should be planned after fixed expenses?
answer
Fixed expenses are required and constant, but variable expenses are more flexible.
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Why is net income lower than gross income?
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withholdings
question
An expense that is constant each month is called a expense.
answer
fixed