Refer to the following scenario to answer the questions below.
Monique and Bob Smith are married with two children at home and a third away at college. They are also considering adopting another child. Monique is the primary shopper for her family. Every week, she goes shopping to buy products that she and her family need and want.
-After budgeting for the things that he has to pay for,such as his mortgage,car payments,insurance,food,and so forth,Bob figures they have $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 money that remains after paying for all necessary expenses. In this scenario, Bob has already budgeted for all necessary expenses, leaving $1,000 for the Smiths to use for whatever they want. This $1,000 represents their discretionary income.

Refer to the Following Scenario to Answer the Questions Below