Unit 2 - Budgeting

19 Questions | Total Attempts: 1593

SettingsSettingsSettings
Unit 2 - Budgeting - Quiz

This test will test the students knowledge of the topic of Budgeting


Questions and Answers
  • 1. 
    You should follow the same budget as long as necessary to control your spending and to meet your financial goals.
    • A. 

      TRUE

    • B. 

      FALSE

  • 2. 
    A personal budget should be planned for a specific period of time.
    • A. 

      TRUE

    • B. 

      FALSE

  • 3. 
    You can think of P.Y.F. as a bill you owe yourself.
    • A. 

      TRUE

    • B. 

      FALSE

  • 4. 
    The best way to stay on track with your budget is to create the budget with spreadsheet software.
    • A. 

      TRUE

    • B. 

      FALSE

  • 5. 
    Income and spending must balance each other.
    • A. 

      TRUE

    • B. 

      FALSE

  • 6. 
    Which one of the following could not be called income?
    • A. 

      An allowance

    • B. 

      A paycheck

    • C. 

      Interest paid on a loan

    • D. 

      Interest received from a savings account

  • 7. 
    What is the purpose of Form W-2?
    • A. 

      To itemize how much money was earned by an employee and how much was withheld and sent to the Internal Revenue Service (IRS)

    • B. 

      To allow the employee to participate in a tax-deferred savings plan

    • C. 

      To document a refund or figure a balance due to the IRS each year

    • D. 

      To allow the employer to withhold federal income taxes from an employee’s wages

  • 8. 
    What is the purpose of Form W-4?
    • A. 

      To itemize how much money was earned by an employee and how much was withheld and sent to the Internal Revenue Service (IRS)

    • B. 

      To allow the employee to participate in a tax-deferred savings plan

    • C. 

      To document a refund or figure a balance due to the IRS each year

    • D. 

      To allow the employer to withhold federal income taxes from an employee’s wages

  • 9. 
    Use Pete Dixon's pay stub shown here to answer Questions 9-11.What is Pete's gross income for this pay period?
    • A. 

      $154.32

    • B. 

      $240.00

    • C. 

      $933.65

    • D. 

      $1,452.00

  • 10. 
    What is Pete’s net income so far this year?
    • A. 

      $ 154.32

    • B. 

      $ 240.00

    • C. 

      $ 933.65

    • D. 

      $1,452.00

  • 11. 
    To reach her financial goals, Rhonda has calculated that she needs an additional $25 per week in gross pay. Rhonda can only work 20 hours per week during the school year, so she wants to ask her supervisor for a raise to increase her income. If she currently earns $6.75 per hour, how much should her hourly wage be raised to increase her weekly gross pay by $25?
    • A. 

      50 cents

    • B. 

      75 cents

    • C. 

      $1.25

    • D. 

      $7.75

    • E. 

      $8.00

  • 12. 
    How much will Rhonda earn per hour if she does get the raise she wants?
    • A. 

      $6.75

    • B. 

      $7.25

    • C. 

      $7.75

    • D. 

      $8.00

  • 13. 
    Marcus set a goal to buy a used car in the next few months. He plans to make a $2,500 down payment and has already saved $1,300. If he can save $150 each month for this goal to buy a car, how long will it take him to save the entire $2,500?
    • A. 

      6 months

    • B. 

      8 months

    • C. 

      10 months

    • D. 

      12 months

  • 14. 
    Lee wants to set up a budget, so he has asked for your help to draft it. He hesitates when you ask him to predict how much income he will have each month because he works more hours per week in the summer than during the school year. What will help him estimate his income for a specific month?
    • A. 

      His W-2 statement from the previous year

    • B. 

      His W-4 form from the previous year

    • C. 

      His pay stub from the previous pay period

    • D. 

      His pay stubs from the past year

  • 15. 
    Any money you receive such as an allowance or paycheck
    • A. 

      Fixed Expense

    • B. 

      Gross Income

    • C. 

      Income

    • D. 

      Payroll Deductions

    • E. 

      Net Income

  • 16. 
    An amount of money spent to buy something or do something that is the exact same amount every time
    • A. 

      Fixed Expense

    • B. 

      Net Income

    • C. 

      Gross Income

    • D. 

      Payroll deductions

    • E. 

      Variable Expenses

  • 17. 
    Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals
    • A. 

      Income

    • B. 

      Gross Income

    • C. 

      Payroll Deductions

    • D. 

      P.Y.F

    • E. 

      Variable Expenses

  • 18. 
    Money taken out of a paycheck by an employer to pay for taxes, health insurance, and other payments
    • A. 

      Payroll Deductions

    • B. 

      P.Y.F.

    • C. 

      Net Income

    • D. 

      Variable Expenses

    • E. 

      Spending and Saving Plan

  • 19. 
    Take-home pay
    • A. 

      Fixed Expenses

    • B. 

      Gross Income

    • C. 

      Spending Savings Plan

    • D. 

      Income

    • E. 

      Net Income

Back to Top Back to top