After budgeting for the things that he has to pay for,such as his mortgage,car payments,insurance,food,and so forth,Bob Smith figures that his family has $1,000 left each month to use for whatever they want.This $1,000 represents the Smith's ________ income.
A)net
B)gross
C)spendable
D)discretionary
E)left-over

Question

Quizplus · Accepted Answer

Discretionary income is the amount of income left over after all necessary expenses have been paid. In this case, Bob Smith has budgeted for his necessary expenses and the $1,000 remaining is discretionary income that he can choose to spend on whatever he wants.

After Budgeting for the Things That He Has to Pay