Answers25-26 PER FIN LIT Section 01 Period 06Unit Test

Unit Test — Unit test Answers

15 verified answers
1
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grossdiscretionarynet

A
gross
B
discretionary
C
net
2
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The best reason to record income at the top of a budget is

A
to easily add expenses to it.
B
to know how much money is available.
C
to avoid spending too much money.
D
to see that is is more important than expenses.
3

Lauren is trying to find her net income. She used the statement and the steps shown.Step 1List all income, including tips and commissions, and list all expenses, including food, entertainment, and clothing.Step 2Total all the income. Then total all the expenses.Step 3Add the total of the income and the expenses.Which explains Lauren’s error?

Question illustration
L
Lauren made an error in step 1 because she should not include tips and commissions in her income.
L
Lauren made an error in step 1 because she should not include entertainment in her expenses.
L
Lauren made an error in step 2 because she does not need to total the expenses.
L
Lauren made an error in step 3 because she should have subtracted the expenses from the income.
4

Which is an example of a financial change that would require budgetary consideration?

A
paying monthly rent
B
purchasing furniture
C
saving a certain amount
D
buying a monthly bus pass
5

Quincy listed his assets and liabilities. CashRentStocksJewelryStudent LoanUtilitiesWhich are Quincy’s assets? Select three choices.

c
cash
r
rent
s
stocks
j
jewelry
s
student loan
6

Through the successful study of personal finance, an individual will be

b
better prepared to calculate financial risks
a
able to spend available assets.
f
faced with long-term challenges.
m
more likely to avoid high opportunity costs.
7

The Dumescu family made a chart to compare its budget items. Liliana noticed that the sum of three of the budget items was half of the budget. Which three items was she referring to?

Question illustration
A
housing, clothing, and savings
B
housing, medical, and food
C
food, transportation, and clothing
D
transportation, savings, and housing
8

Read the scenario.Yuri has $100 to spend at the store. He spots a pair of designer jeans with a $98 price tag on them but knows that he can buy three pairs of $30 jeans for about the same price. He still decides to buy the $98 pair.

A
emotional spending
B
confused sense of needs and wants
C
greedy spending
D
conspicuous consumption
9

Which of these qualify as variable expenses? Choose three answers.clothing purchasesloan paymentmonthly groceriesapartment rentmedical bills

A
clothing purchases
B
loan payment
C
monthly groceries
D
apartment rent
E
medical bills
10

Which are shown on a balance sheet? Select three choices.

a
assets
l
liabilities
a
age
t
time period
d
date of birth
11

Natalie’s income statement for the month of October is shown. What is Natalie’s net income for the month of October?

Question illustration
A
$930.00
B
$980.00
C
$1,930.00
D
$1,980.00
12

Iliana’s gross pay is $2,130 per month. Her deductions total $270. She budgets for $1,000 in fixed expenses and $400 in variable expenses. How much money will Iliana be able to save?

A
$270
B
$460
C
$730
D
$860
13

increaselimitstopmaximize

A
increase
B
limit
C
stop
D
maximize
14

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Answer not available
15

What is the definition of gross income?

A
amount of income saved per year
B
amount earned before deductions
C
amount of tax deducted from income
D
amount received after deductions

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