Question 1

Jane wants to keep her debt-to-income ratio at the recommended 15% or lower.The sum of Jane's assets is $12,000 and the sum of her liabilities is $2,300,so she easily falls within the recommended amount.

Accepted Answer

Debt-to-income ratio is calculated by dividing total monthly debt payments by gross monthly income, not by comparing assets to liabilities.

Question 2

Tamika created this pie chart of her entertainment budget.According to the chart,if Tamika's budget is $125 for entertainment,$36 is budgeted for shopping.
​

Accepted Answer

False

Question 3

Which is NOT an example of a budget?
A) Frequency budget plan
B) Envelope accounting system
C) Cash flow analysis
D) Year-long expense budget plan

Accepted Answer

Cash flow analysis is a financial assessment tool used to track the flow of cash in and out of a business or personal finances, not a budget plan.

Question 4

Last month,Marybeth was charged $112 for 945 kWh of electricity.How much did the company charge her per kWh,to the nearest cent?
A) $0.06
B) $0.08
C) $0.10
D) $0.12

Accepted Answer

To find out the cost per kWh, we need to divide the total amount charged by the number of kWh used. 
112/945 = 0.1185185... 
Rounding to the nearest cent gives us $0.12, which is represented by choice D.

Question 5

A nursery located in Florida uses a water meter to measure its water usage in CCF.It is charged $0.36 per CCF of water.Its last meter reading was 123,692 and their present reading is 127,394.For this usage,the nursery was charged $332.72.

Accepted Answer

The water usage is 3,702 CCF (127,394 - 123,692), and at $0.36 per CCF, the charge should be $1,332.72, not $332.72.

Question 6

The Yamamotos use natural gas to heat their home.Last year they paid $14.50 per thousand cubic feet (Mcf).The price increased 20% this year,so they are now paying $17.4 per Mcf.

Accepted Answer

The statement is true as the price of natural gas increased by 20%, from $14.50 to $17.4 per Mcf.

Question 7

A cash flow analysis is a type of budget that helps people plan for future spending and savings.

Accepted Answer

A cash flow analysis is a tool used to assess the inflows and outflows of cash in a business or personal finance context, primarily to understand liquidity positions, not specifically to plan for future spending and savings like a budget.

Question 8

Ralph has budgeted $175 for entertainment.He uses this money to go out on dates for $35 or to go out with his friends for $15.Which budget line equation represents the situation?
A) 35x - 15y = 175
B) 35x + 15y = 175
C) (3x + 5y)= 175
D) 175 - (35x + 15y)

Accepted Answer

The budget line equation needs to represent Ralph's budget of $175 for entertainment and his options of spending $35 on dates or $15 on going out with friends. This can be represented by the equation: 35x + 15y = 175, where x represents the number of dates and y represents the number of times he goes out with friends.

Question 9

A spreadsheet is an example of an electronic matrix.

Accepted Answer

A spreadsheet is a type of electronic matrix that is used for organizing, analyzing, and presenting data in a grid format. It is composed of rows and columns where data can be inputted and manipulated using formulas and functions.

Question 10

Some examples of variable expenses are utility bills and entertainment costs.

Accepted Answer

Variable expenses are expenses that can change from month to month, depending on usage or personal choices. Examples of variable expenses include utility bills (such as electricity and water), entertainment costs, groceries, transportation, and clothing.

Question 11

Net worth is the difference between a person's assets and their liabilities.Net worth can be a positive number or a negative number.

Accepted Answer

This statement is true. Net worth is calculated by subtracting a person's liabilities from their assets. If the result is a positive number, it means they have more assets than liabilities and a positive net worth. If the result is a negative number, it means they have more liabilities than assets and a negative net worth.

Question 12

Andy has a 40-hour per week job and leaves a certain radio on all day while he works.This radio requires 125 watts of electricity.At a price per kilowatt-hour of $0.10,it costs $0.10 to play the radio all day.

Accepted Answer

The radio requires 125 watts of electricity, which is 0.125 kilowatts. At a price of $0.10 per kilowatt-hour, it costs $0.10 * 0.125 = $0.0125 to play the radio for one hour. Since Andy leaves the radio on for 40 hours per week, it costs $0.0125 * 40 = $0.50 to play the radio all week.

Question 13

Mrs.Watanabe is choosing a cell phone plan.One plan costs $35 a month and includes 450 minutes.The charge for each minute over 450 is $0.16.The company also offers an unlimited calling plan with a $55 monthly charge.At how many minutes would the cost of the two plans be the same
A) 575 minutes
B) 566 minutes
C) 552 minutes
D) 525 minutes

Accepted Answer

To find the point where the costs are the same, set up an equation where the cost of the first plan equals the cost of the second plan: $35 + $0.16(x - 450) = $55, where x is the number of minutes. Solving for x gives 575 minutes.

Question 14

Manuel works for the water company as a meter reader.The meter below is the Jansen's water meter.What is the reading,in CCF,on the meter shown?
​

Accepted Answer

The answer of Manuel works for the water company as...

Question 15

Randy and Jake are brothers living in the same city in homes that are about the same age and size.One brother has recently purchased an energy-efficient gas furnace while the other brother relies on an older,less efficient,oil furnace.By comparing the lines of the graph,it appears that Randy has the more energy-efficient furnace.
​

Accepted Answer

The answer of Randy and Jake are brothers living in...

Question 16

Mrs.Kalbrisa budgets $125 a month for entertainment.She has allocated $10 for the movies and $25 for dining out.She constructs the following budget line graph to represent the situation,where x is the number of movies and y is the number of times she dines out in a month.What combination does NOT fall within her budgeted amount for entertainment? ​  ​
A) (5,3)
B) (3,3)
C) (1,4)
D) (7,5)

Accepted Answer

In the graph, the points on the line or below it represent combinations that fall within the budgeted amount for entertainment, while those above the line represent combinations that exceed the budget. Using this logic, we can see that the point (7,5) falls above the line, indicating that it exceeds Mrs. Kalbrisa's budget. Therefore, choice D is the best choice.

Question 17

Which statement is NOT part of a debt-reduction plan?
A) Lower debts with the highest interest rates.
B) Slow or eliminate credit card spending
C) Only pay the minimum amount when possible.
D) Use an online debt management calculator.

Accepted Answer

Only paying the minimum amount prolongs the debt repayment process and results in paying more interest in the long run. It is not a part of a debt-reduction plan. Choices A, B, and D are all effective ways to reduce debt.

Question 18

Jose and Lisa Sanchez created a spreadsheet to chart their income and expenses for the month.The sum of their fixed expenses is in cell B10,the sum of their variable expenses is in cell B23,and the sum of their pro-rated non-monthly expenses is in cell B40.What formula should be entered in the spreadsheet cell that contains their total expenses?
A) =SUM(B10-B40)
B) =SUM(B10:B23:B40)
C) =SUM(B10*B23*B40)
D) =SUM(B10+B23+B40)

Accepted Answer

The formula for calculating the total expenses in this case would be to sum up their fixed, variable, and pro-rated non-monthly expenses, which are stored in cells B10, B23, and B40 respectively. Therefore, the correct formula would be to add the values in these cells together, which is represented by option D: =SUM(B10+B23+B40). Option A is incorrect because subtracting the pro-rated non-monthly expenses from the fixed expenses would not accurately represent their total expenses. Option B is incorrect because the sum function only takes one range of cells as its input, not multiple ranges. Option C is incorrect because multiplying the expenses together would not represent their total expenses.

Question 19

Sarah lives in a part of the country where there are droughts.Consequently,the water company increases the cost per CCF of water based on usage.The piecewise function shows the rate schedule.  If Sarah used 210 CCF of water last month,what was she charged?
A) $37.80
B) $38.80
C) $39.80
D) $47.00

Accepted Answer

The answer of Sarah lives in a part of the...

Question 20

A single woman uses an online cash flow calculator which reveals a cash flow of -203.What does this mean?
A) She is earning more than she is spending
B) She is spending more than she is earning.
C) She has $203 extra in her budget each month.
D) She has $203 more she can spend.

Accepted Answer

The negative cash flow of -203 indicates that the woman is spending more than she is earning each month.

Quiz 11: Prepare a Budget

Jane wants to keep her debt-to-income ratio at the recommended 15% or lower.The sum of Jane's assets is $12,000 and the sum of her liabilities is $2,300,so she easily falls within the recommended amount.

Tamika created this pie chart of her entertainment budget.According to the chart,if Tamika's budget is $125 for entertainment,$36 is budgeted for shopping. ​

Which is NOT an example of a budget?

Last month,Marybeth was charged $112 for 945 kWh of electricity.How much did the company charge her per kWh,to the nearest cent?

A nursery located in Florida uses a water meter to measure its water usage in CCF.It is charged $0.36 per CCF of water.Its last meter reading was 123,692 and their present reading is 127,394.For this usage,the nursery was charged $332.72.

The Yamamotos use natural gas to heat their home.Last year they paid $14.50 per thousand cubic feet (Mcf).The price increased 20% this year,so they are now paying $17.4 per Mcf.

A cash flow analysis is a type of budget that helps people plan for future spending and savings.

Ralph has budgeted $175 for entertainment.He uses this money to go out on dates for $35 or to go out with his friends for $15.Which budget line equation represents the situation?

A spreadsheet is an example of an electronic matrix.

Some examples of variable expenses are utility bills and entertainment costs.

Net worth is the difference between a person's assets and their liabilities.Net worth can be a positive number or a negative number.

Andy has a 40-hour per week job and leaves a certain radio on all day while he works.This radio requires 125 watts of electricity.At a price per kilowatt-hour of $0.10,it costs $0.10 to play the radio all day.

Mrs.Watanabe is choosing a cell phone plan.One plan costs $35 a month and includes 450 minutes.The charge for each minute over 450 is $0.16.The company also offers an unlimited calling plan with a $55 monthly charge.At how many minutes would the cost of the two plans be the same

Manuel works for the water company as a meter reader.The meter below is the Jansen's water meter.What is the reading,in CCF,on the meter shown? ​

Which statement is NOT part of a debt-reduction plan?

Sarah lives in a part of the country where there are droughts.Consequently,the water company increases the cost per CCF of water based on usage.The piecewise function shows the rate schedule. If Sarah used 210 CCF of water last month,what was she charged?

A single woman uses an online cash flow calculator which reveals a cash flow of -203.What does this mean?

Tamika created this pie chart of her entertainment budget.According to the chart,if Tamika's budget is $125 for entertainment,$36 is budgeted for shopping.

Manuel works for the water company as a meter reader.The meter below is the Jansen's water meter.What is the reading,in CCF,on the meter shown?