Principles of Financial Planning Answers

Take another look at this chart.If you were planning a budget, which amount would you use to record your income?

Which statements best explain why income should be recorded at the beginning of a budget? Check all that apply.Income is the foundation for a budget.Budgets are based on variables, rather than on income.Putting income at the top helps to keep this number in mind.Placing income at the top allows expenses to be subtracted easily.Tracking income is more important than tracking expenses.

A fixed expense is one for which the amount is , and it should be considered other expenses.

A fixed expense is one for which the amount is , and it should be considered other expenses.

A variable expense is one for which the amount is , and it should be considered fixed expenses.

A variable expense is one for which the amount is , and it should be considered fixed expenses.

Discretionary spending is the most budget item and the easiest to change.