Chapter 7: Money In Review
A quiz on budgeting.
Questions and Answers
- 1.
Form used to do a budget
- A.
Monthly cash flow forms
- B.
Irregular income form
- C.
Budget
- D.
Reconcile
Correct Answer
A. Monthly cash flow forms -
- 2.
Form used by persons earning an inconsistent monthly income
- A.
Monthly cash flow form
- B.
Budget
- C.
Irregular income form
- D.
Duplicate checks
Correct Answer
C. Irregular income formExplanation
The correct answer is "irregular income form." This form is used by individuals who earn an inconsistent monthly income. It helps them track their income and expenses, allowing them to budget effectively despite the irregularity of their earnings. By using this form, individuals can plan their finances accordingly and ensure that they are able to meet their financial obligations even when their income fluctuates.Rate this question:
-
- 3.
Process used to determine if the balance in your checking registry matches the balance reported on the bank statement
- A.
Budget
- B.
Reconcile
- C.
Currency
- D.
Duplicate checks
Correct Answer
B. ReconcileExplanation
Reconciling is the process of comparing the balance in your checking registry with the balance reported on the bank statement. This involves carefully reviewing and comparing all the transactions recorded in your registry with the transactions listed on the bank statement. By doing so, any discrepancies or errors can be identified and corrected, ensuring that the two balances match. Reconciling is an important step in maintaining accurate financial records and preventing any potential issues or misunderstandings with the bank.Rate this question:
-
- 4.
Another name for cash flow plan
- A.
Budget
- B.
Currency
- C.
Reconcile
- D.
Discipline
Correct Answer
A. BudgetExplanation
A cash flow plan is a financial tool that helps individuals or businesses manage their income and expenses. It involves creating a detailed plan for how money will be earned and spent over a specific period of time. Budget is another term used to describe this type of financial plan, as it involves setting specific limits and allocations for various expenses and income sources. Therefore, the correct answer for another name for cash flow plan is "budget".Rate this question:
-
- 5.
Helps people who forget to record checks in their register after writing them
- A.
Currency
- B.
Irregular income form
- C.
Duplicate checks
- D.
Debit card
Correct Answer
C. Duplicate checksExplanation
Duplicate checks can help people who forget to record checks in their register after writing them. Duplicate checks are essentially carbon copies of the original check, allowing individuals to have a record of the transaction. This can be helpful for those who may forget to manually record the check in their checkbook register, ensuring that they have an accurate record of their transactions and can reconcile their bank statements correctly.Rate this question:
-
- 6.
Bounced checks are a sign of ___________________ living.
- A.
Normal
- B.
Crisis
- C.
Comfortable
- D.
Both a and b
Correct Answer
B. CrisisExplanation
Bounced checks are a sign of crisis living because it indicates that the person or entity writing the checks does not have enough funds in their account to cover the amount. This can be a result of financial instability or mismanagement, which is often associated with a crisis situation.Rate this question:
-
- 7.
A written budget should be done every
- A.
Month
- B.
Week
- C.
3 months
- D.
6 months
Correct Answer
A. MonthExplanation
A written budget should be done every month to ensure that expenses and income are properly tracked and managed. Monthly budgeting allows individuals or households to have a clear understanding of their financial situation on a regular basis. It helps in setting financial goals, identifying areas of overspending or savings, and making necessary adjustments to stay on track. By reviewing and updating the budget monthly, individuals can make informed decisions about their spending and saving habits, ultimately leading to better financial stability and control.Rate this question:
-
- 8.
Your monthly budget should include
- A.
Fixed expenses
- B.
Variable expenses
- C.
Money to blow
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The correct answer is "all of the above". When creating a monthly budget, it is important to consider fixed expenses, which are recurring costs that do not change, such as rent or mortgage payments. Variable expenses, on the other hand, are costs that fluctuate from month to month, such as groceries or utility bills. Lastly, it is also important to allocate some money for discretionary spending or "money to blow", which can be used for entertainment or personal indulgences. Including all of these categories in the budget ensures that all necessary expenses are covered while leaving room for flexibility and enjoyment.Rate this question:
-
- 9.
What would account for a difference in balances in your checkbook registry and bank statement after reconciling the two?
- A.
An error or omission
- B.
Outstandiing checks that didn't clear
- C.
Deposits that did not post
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The correct answer is "all of the above". This means that a difference in balances in your checkbook registry and bank statement after reconciling the two could be due to an error or omission, outstanding checks that didn't clear, or deposits that did not post. In other words, any of these factors could contribute to the difference between the two balances.Rate this question:
-
- 10.
Doing a budget does NOT:
- A.
Lead to an increase in arguments
- B.
Make your money go farther
- C.
Show if you are overspending in an area
- D.
Remove guild and shame sometimes associated with purchases
Correct Answer
A. Lead to an increase in argumentsExplanation
Doing a budget does not lead to an increase in arguments because it helps individuals and families to plan and allocate their finances effectively. By setting clear financial goals and tracking expenses, a budget promotes transparency and open communication about money matters. It allows people to make informed decisions together, reducing the likelihood of disagreements or conflicts about spending priorities. Additionally, a budget helps identify areas where overspending may be occurring, enabling adjustments to be made and preventing financial strain that could lead to arguments.Rate this question:
-
- 11.
Why do you need a written budget even when you know you can afford your expenses?
- 12.
What are some reasons why the balance in your checkbook might not match the balance on your bank statement?
Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
-
Current Version
-
Mar 21, 2023Quiz Edited by
ProProfs Editorial Team -
Oct 01, 2009Quiz Created by
Theresaburton
Back to top