St.

Anthony’s TVET College Emdibir

Department of Accounting And Finance

Level 2: Prepare and use a personal budget and savings plan
Name -----------------------------------------ID ------------------------sex -------------

l .Choose The best Answer

1. How Does A Budget Deficit Happen?
A. Peoples may have cut back on their spending
B. People may have spent more money.
C. People increase their income
D. None

2. ------------------- is prepared to show how actual results compare to the budgeted numbers.
A. Budget Report B. Budget Breakeven C. Budget performance Report
D. All
3. The principles of effective budgeting are simple:
A. Review your budget B. Spend less than you earn
C. Keep good records for spending, taxes, and other purposes D. All
4. Some activities that generate portfolio income include.
A .Buying and Selling Real Estate B. Trading buying/selling Paper Assets
C. A&B D. None
5. A financial plan is a tool to help you achieve short-term financial objectives.
A. True B. False
6. Budgeting is the most commonly used financial tool for planning and monitoring the day to
day and long term activities of the business.
A. False B. True
7. Ato Biruk is one of the employees of ABC Company who earns net income of birr, 12000.
30% of his net income covers fixed cost and the remaining income is allocated (distributed) to
variable expenses and personal savings. Personal saving is 20% of variable expenses. For the
month of December 2014 the actual variable expense is 80% of the budgeted variable expense.
Prepare Fixed cost?
A. 3000 B. 3600 C.4000 D.5000
8. Prepare Variable expense.
A.7000 B.6000 C.5000 D. 7500
9. Prepare personal Saving.
A. 2000 B.3000 C. 1400 D.1500
10. Budgeted the amount we actually earned and spent.
A. True B. False