Gr 10 Math Lit: Ch 4.3 Income, Expenditure, Profit and Loss, Expenditure Statements and Budgets

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What is the formula for calculating profit?

Profit = Total Income + Cost of Production

Profit = Total Income / Cost of Production

Profit = Total Income - Cost of Production (correct)

Profit = Cost of Production - Total Income

What type of income is a commission?

Salary

Fixed Income

Variable Income (correct)

Occasional Income

What is the difference between income and expenditure called when expenditure exceeds income?

Budget

Deficit (correct)

Profit

Surplus

What is a study loan?

A loan granted to students to assist with financial matters during their study period Signup and view all the answers

What is the purpose of a budget?

To plan and balance expenditure with income Signup and view all the answers

What is a bursary?

Financial assistance granted to students, usually from government or private companies Signup and view all the answers

What is the type of income that is regular and unchanging?

Fixed Income Signup and view all the answers

What is gratuities also known as?

Tips Signup and view all the answers

What is personal expenditure?

Money spent on various needs and wants Signup and view all the answers

What is an example of a fixed expense?

Rent Signup and view all the answers

What is the primary purpose of drawing up a budget?

To plan expenditure based on expected income Signup and view all the answers

What is the difference between a budget and a statement?

A budget is a plan, and a statement is a record Signup and view all the answers

Why is it important to repay debts before starting to save?

Debts accrue interest and reduce available funds for savings Signup and view all the answers

What is the formula for calculating monthly savings?

Monthly Savings = Total Income - (Total Fixed Expenses + Total Variable Expenses + Total Occasional Expenses) Signup and view all the answers

What is the purpose of calculating percentages for budgeting?

To determine the amount to spend on each category Signup and view all the answers

What is an example of occasional expenses?

Car repairs Signup and view all the answers

What is the main difference between fixed expenses and variable expenses?

Fixed expenses remain the same, while variable expenses change. Signup and view all the answers

Which of the following is an example of debt?

Credit card balance Signup and view all the answers

What is the primary purpose of creating a budget for a particular item or event?

To plan for a specific event or expense Signup and view all the answers

Why is it essential to compare budget statements with actual statements?

To track financial performance Signup and view all the answers

What is the first step in budgeting for savings?

Repaying debts Signup and view all the answers

What is the main reason for including savings plans in a budget?

To prepare for unexpected costs and important events Signup and view all the answers

Which of the following is a characteristic of a well-planned budget?

It is focused on high-priority items Signup and view all the answers

What is the purpose of calculating percentages for budgeting?

To allocate income to different categories Signup and view all the answers

What is the primary source of income for individuals who work in a service industry?

Gratuities (Tips) Signup and view all the answers

What is the purpose of creating a budget?

To balance income and expenditure Signup and view all the answers

What type of income is received from renting out property?

Rental Income Signup and view all the answers

What is the term for when income exceeds expenditure?

Surplus Signup and view all the answers

What is the main difference between a fixed income and a variable income?

Fixed income is regular while variable income changes over time Signup and view all the answers

What is the primary source of income for individuals who produce and sell goods or services?

Profit Signup and view all the answers

What is the term for financial assistance granted to students, usually from government or private companies?

Bursary Signup and view all the answers

What is the term for money received as gifts or allowances?

Gifts and Pocket Money Signup and view all the answers

What is the primary reason for categorizing expenditure into fixed, variable, and occasional expenses?

To allocate resources effectively and make informed financial decisions Signup and view all the answers

Which of the following is a characteristic of a well-planned budget?

It is realistic, balanced, and takes into account all necessary expenses Signup and view all the answers

What is the primary purpose of comparing budget statements with actual statements?

To track financial performance and make adjustments Signup and view all the answers

How can one increase the amount available for savings?

By reducing variable expenses Signup and view all the answers

What is the primary benefit of budgeting for specific events or expenses?

It allows for more effective planning and allocation of resources Signup and view all the answers

Why is it essential to repay debts before starting to save?

To avoid paying interest on debt and reduce the debt burden Signup and view all the answers

What is the primary purpose of including a savings plan in a budget?

To prepare for unexpected expenses or events Signup and view all the answers

What is the primary benefit of monthly budgeting?

It ensures that expenses do not exceed income Signup and view all the answers

Which of the following incomes can be classified as both fixed and variable?

Rental Income Signup and view all the answers

What is the primary purpose of distinguishing between fixed, variable, and occasional incomes?

To identify areas for cost reduction Signup and view all the answers

When creating a budget, what is the importance of distinguishing between surplus and deficit?

To ensure financial stability and planning Signup and view all the answers

Which of the following statements is true about a budget?

A budget is a plan to balance income and expenditure Signup and view all the answers

What is the primary difference between a study loan and a bursary?

A study loan is repayable, while a bursary is not Signup and view all the answers

Which of the following is an example of an expenditure item in a budget?

Rent Signup and view all the answers

What is the relationship between income, expenditure, and profit?

Profit is the difference between income and expenditure Signup and view all the answers

Which of the following is a characteristic of a well-planned budget?

It balances income and expenditure Signup and view all the answers

What is the primary purpose of categorizing income into fixed, variable, and occasional?

To differentiate between regular and irregular income Signup and view all the answers

What happens when the total expenditure exceeds the total income?

A deficit occurs Signup and view all the answers

What is the primary difference between a salary and a wage?

The frequency of payment Signup and view all the answers

What is the purpose of a budget statement?

To display the income and expenditure of an individual Signup and view all the answers

What is the relationship between income, expenditure, and profit?

Profit is the difference between income and expenditure Signup and view all the answers

What is the primary purpose of categorizing expenditure into fixed, variable, and occasional expenses?

To plan for unforeseen expenses Signup and view all the answers

What is the primary benefit of having a budget?

To balance income and expenditure Signup and view all the answers

Which of the following is a result of comparing budget statements with actual statements?

Tracking financial performance Signup and view all the answers

What is the primary purpose of drawing up a budget?

To plan for future expenses and save money Signup and view all the answers

What is the primary benefit of budgeting for specific events or expenses?

Reducing financial stress Signup and view all the answers

What is the primary difference between a study loan and a bursary?

The purpose of the financial assistance Signup and view all the answers

What is the primary reason for including savings plans in a budget?

To prepare for unexpected costs Signup and view all the answers

What is the primary purpose of finding better deals on existing expenses in budgeting for savings?

To increase savings Signup and view all the answers

What is the primary benefit of monthly budgeting?

Ensuring expenses do not exceed income Signup and view all the answers

What is the primary purpose of setting aside money for unexpected expenses?

To prepare for annual bills Signup and view all the answers

What is the primary purpose of transferring balances to lower interest accounts in budgeting for savings?

To reduce debt Signup and view all the answers

Gr 10 Math Lit: Ch 4.3 Income, Expenditure, Profit and Loss, Expenditure Statements and Budgets

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Questions and Answers

What is the formula for calculating profit?

What type of income is a commission?

What is the difference between income and expenditure called when expenditure exceeds income?

What is a study loan?

What is the purpose of a budget?

What is a bursary?

What is the type of income that is regular and unchanging?

What is gratuities also known as?

What is personal expenditure?

What is an example of a fixed expense?

What is the primary purpose of drawing up a budget?

What is the difference between a budget and a statement?

Why is it important to repay debts before starting to save?

What is the formula for calculating monthly savings?

What is the purpose of calculating percentages for budgeting?

What is an example of occasional expenses?

What is the main difference between fixed expenses and variable expenses?

Which of the following is an example of debt?

What is the primary purpose of creating a budget for a particular item or event?

Why is it essential to compare budget statements with actual statements?

What is the first step in budgeting for savings?

What is the main reason for including savings plans in a budget?

Which of the following is a characteristic of a well-planned budget?

What is the purpose of calculating percentages for budgeting?

What is the primary source of income for individuals who work in a service industry?

What is the purpose of creating a budget?

What type of income is received from renting out property?

What is the term for when income exceeds expenditure?

What is the main difference between a fixed income and a variable income?

What is the primary source of income for individuals who produce and sell goods or services?

What is the term for financial assistance granted to students, usually from government or private companies?

What is the term for money received as gifts or allowances?

What is the primary reason for categorizing expenditure into fixed, variable, and occasional expenses?

Which of the following is a characteristic of a well-planned budget?

What is the primary purpose of comparing budget statements with actual statements?

How can one increase the amount available for savings?

What is the primary benefit of budgeting for specific events or expenses?

Why is it essential to repay debts before starting to save?

What is the primary purpose of including a savings plan in a budget?

What is the primary benefit of monthly budgeting?

Which of the following incomes can be classified as both fixed and variable?

What is the primary purpose of distinguishing between fixed, variable, and occasional incomes?

When creating a budget, what is the importance of distinguishing between surplus and deficit?

Which of the following statements is true about a budget?

What is the primary difference between a study loan and a bursary?

Which of the following is an example of an expenditure item in a budget?

What is the relationship between income, expenditure, and profit?

Which of the following is a characteristic of a well-planned budget?

What is the primary purpose of categorizing income into fixed, variable, and occasional?

What happens when the total expenditure exceeds the total income?

What is the primary difference between a salary and a wage?

What is the purpose of a budget statement?

What is the relationship between income, expenditure, and profit?

What is the primary purpose of categorizing expenditure into fixed, variable, and occasional expenses?

What is the primary benefit of having a budget?

Which of the following is a result of comparing budget statements with actual statements?

What is the primary purpose of drawing up a budget?

What is the primary benefit of budgeting for specific events or expenses?

What is the primary difference between a study loan and a bursary?

What is the primary reason for including savings plans in a budget?

What is the primary purpose of finding better deals on existing expenses in budgeting for savings?

What is the primary benefit of monthly budgeting?

What is the primary purpose of setting aside money for unexpected expenses?

What is the primary purpose of transferring balances to lower interest accounts in budgeting for savings?

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