15
QuizMultiple Choice
Case Study: Personal Financial Planning — Unit test
Question 15 of 15 • MO-Personal Finance
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?
Answer
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.