Learn About Budgets Accounting Trivia!

2.

If the Regular Expense Total was in cell B24 and the Discretionary Expense Total was in B34 what would the formula look like for Total Expenses:

=B24+B34
B24+B34=
B24+B34
None of the Above
A and B would work

Correct Answer

A. =B24+B34

Explanation

The formula for Total Expenses would be "=B24+B34". This formula adds the Regular Expense Total (in cell B24) and the Discretionary Expense Total (in cell B34) together to calculate the total expenses.

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3.

Murtle is paid biweekly. In each two-week period, she works 64 hours and earns $15.15 per hour. She is married, and she and her husband have one child.The Social Security deduction is 6.2% and the Medicare deduction is 1.45%. State and federal taxes are also deducted. Help Murtle calculate the deductions from her paycheck. State taxes : $75.98 Federal taxes: $50.45______________How much is Murtles paycheck every 2 weeks after all of her taxes is taken out

About $900.00
About $970.00
About $770.00
About $550.00
About $850.00

Correct Answer

A. About $770.00

Explanation

To calculate Murtle's paycheck after all deductions, we need to calculate the total deductions first. The Social Security deduction is 6.2% of her earnings, which is 0.062 * (64 * $15.15). The Medicare deduction is 1.45% of her earnings, which is 0.0145 * (64 * $15.15). The state taxes deduction is given as $75.98 and the federal taxes deduction is given as $50.45. Adding up all these deductions, we get the total deductions as $75.98 + $50.45 + Social Security deduction + Medicare deduction. Subtracting the total deductions from the total earnings, which is (64 * $15.15), we get Murtle's paycheck every 2 weeks after all taxes are taken out, which is about $770.00.

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4.

1. In Numbers (the spreadsheet application) you start every formula with

A dollar sign
An equals sign
The cell letter and number you want to start with
All of the above
None of the above

Correct Answer

A. An equals sign

Explanation

In Numbers (the spreadsheet application), you start every formula with an equals sign. This is because the equals sign indicates to the program that you are entering a formula and not just a regular value. By starting a formula with an equals sign, you are instructing Numbers to perform a calculation or operation based on the values or functions that follow the equals sign.

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5.

Molly and her husband make a combined gross salary of $210,000.00. They have car payments of $500.00 and $320.00. They also have a credit card payment of $200 per month. They have $600 student loan payments. According to the front-end ratio, how much can they pay monthly for a home loan?

$10,000.00
$58,800.00
$4,900.00
None of the Above

Correct Answer

A. $4,900.00

Explanation

The front-end ratio is a measure used by lenders to determine how much of a borrower's income can be allocated towards housing expenses. It is calculated by dividing the total monthly housing expenses by the gross monthly income. In this case, Molly and her husband have a combined gross salary of $210,000.00. Their monthly housing expenses include car payments ($500.00 + $320.00), credit card payment ($200.00), and student loan payments ($600.00), which totals to $1,620.00. Therefore, according to the front-end ratio, they can pay a maximum of $1,620.00 for their home loan. None of the given answer options accurately represent this amount.

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6.

1. Chad makes $150,000.00 per year salary at his job. What is the maximum amount of money that Chad should have in a monthly debt payments (back-end)?

$54,000.00
$6000.00
$4500.00
None of the above

Correct Answer

A. $4500.00

Explanation

Chad's maximum monthly debt payments (back-end) should be $4500.00. This is because the back-end ratio is calculated by dividing the total monthly debt payments by the monthly gross income. In this case, Chad's annual salary is $150,000.00, so his monthly gross income would be $12,500.00. The maximum back-end ratio recommended is typically 36%, which means that the total monthly debt payments should not exceed 36% of the monthly gross income. Therefore, 36% of $12,500.00 is $4500.00, making it the correct answer.

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7.

Molly and her husband make a combined gross salary of $210,000.00. They have car payments of $500.00 and $320.00. They also have a credit card payment of $200 per month. They have $600 student loan payments. According to the back-end ratio, how much of a payment could they have for a new home?

$75,600.00
$6,300.00
$4,680.00
$5,280.00
None of the Above

Correct Answer

A. $4,680.00

Explanation

Molly and her husband's combined gross salary is $210,000.00. They have car payments of $500.00 and $320.00, a credit card payment of $200 per month, and $600 student loan payments. The back-end ratio is a measure of the maximum percentage of their gross income that can be used for debt payments, including a mortgage. To calculate this, we subtract their total monthly debt payments ($500 + $320 + $200 + $600 = $1,620) from their monthly gross income ($210,000 / 12 = $17,500), and then multiply the result by 0.28 (the maximum back-end ratio). Therefore, the maximum monthly payment they could have for a new home is $17,500 * 0.28 - $1,620 = $4,680.00.

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8.

Moe makes $42,000.00 per year at her job. What is the maximum amount of money per month that Moe should have according to the (front-end)?

$980.00
$1,100.00
$11,760.00
None of the Above

Correct Answer

A. $980.00

Explanation

Moe makes $42,000 per year at her job. To calculate the maximum amount of money per month, we divide her annual salary by 12 (months in a year). Therefore, $42,000 / 12 = $3,500. The front-end ratio is typically 28% of the monthly income. So, 28% of $3,500 is (0.28 * $3,500) = $980.00. Therefore, the maximum amount of money per month that Moe should have according to the front-end is $980.00.

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9.

My should = my ____ to create something that is called a balanced budget

Gross income,Net income
Total expenses, Gross income
Net income, total expenses
Regular expenses and Discretionary Expenses, Net Income
Both c and d

Correct Answer

A. Both c and d

Explanation

To create a balanced budget, it is important for my net income to equal my total expenses. This means that after deducting all regular and discretionary expenses from my net income, the result should be zero. Both option C (net income, total expenses) and option D (regular expenses and discretionary expenses, net income) correctly represent this concept.

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Learn About Budgets Accounting Trivia!

What is the difference between gross vs net pay?

Quiz Preview

If the Regular Expense Total was in cell B24 and the Discretionary Expense Total was in B34 what would the formula look like for Total Expenses:

1. In Numbers (the spreadsheet application) you start every formula with

Molly and her husband make a combined gross salary of $210,000.00. They have car payments of $500.00 and $320.00. They also have a credit card payment of $200 per month. They have $600 student loan payments. According to the front-end ratio, how much can they pay monthly for a home loan?

1. Chad makes $150,000.00 per year salary at his job. What is the maximum amount of money that Chad should have in a monthly debt payments (back-end)?

Molly and her husband make a combined gross salary of $210,000.00. They have car payments of $500.00 and $320.00. They also have a credit card payment of $200 per month. They have $600 student loan payments. According to the back-end ratio, how much of a payment could they have for a new home?

Moe makes $42,000.00 per year at her job. What is the maximum amount of money per month that Moe should have according to the (front-end)?

My should = my ____ to create something that is called a balanced budget

Learn About Budgets Accounting Trivia!

What is the difference between gross vs net pay?

Quiz Preview

If the Regular Expense Total was in cell B24 and the Discretionary Expense Total was in B34 what would the formula look like for Total Expenses:

1. In Numbers (the spreadsheet application) you start every formula with

Molly and her husband make a combined gross salary of $210,000.00. They have car payments of $500.00 and $320.00. They also have a credit card payment of $200 per month. They have $600 student loan payments. According to the front-end ratio, how much can they pay monthly for a home loan?

1. Chad makes $150,000.00 per year salary at his job. What is the maximum amount of money that Chad should have in a monthly debt payments (back-end)?

Molly and her husband make a combined gross salary of $210,000.00. They have car payments of $500.00 and $320.00. They also have a credit card payment of $200 per month. They have $600 student loan payments. According to the back-end ratio, how much of a payment could they have for a new home?

Moe makes $42,000.00 per year at her job. What is the maximum amount of money per month that Moe should have according to the (front-end)?

My ________________should = my ____________________ to create something that is called a balanced budget

My should = my ____ to create something that is called a balanced budget