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?

  • 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?

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

    What is the purpose of a budget?

    <p>To plan and balance expenditure with income</p> Signup and view all the answers

    What is a bursary?

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

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

    <p>Fixed Income</p> Signup and view all the answers

    What is gratuities also known as?

    <p>Tips</p> Signup and view all the answers

    What is personal expenditure?

    <p>Money spent on various needs and wants</p> Signup and view all the answers

    What is an example of a fixed expense?

    <p>Rent</p> Signup and view all the answers

    What is the primary purpose of drawing up a budget?

    <p>To plan expenditure based on expected income</p> Signup and view all the answers

    What is the difference between a budget and a statement?

    <p>A budget is a plan, and a statement is a record</p> Signup and view all the answers

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

    <p>Debts accrue interest and reduce available funds for savings</p> Signup and view all the answers

    What is the formula for calculating monthly savings?

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

    What is the purpose of calculating percentages for budgeting?

    <p>To determine the amount to spend on each category</p> Signup and view all the answers

    What is an example of occasional expenses?

    <p>Car repairs</p> Signup and view all the answers

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

    <p>Fixed expenses remain the same, while variable expenses change.</p> Signup and view all the answers

    Which of the following is an example of debt?

    <p>Credit card balance</p> Signup and view all the answers

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

    <p>To plan for a specific event or expense</p> Signup and view all the answers

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

    <p>To track financial performance</p> Signup and view all the answers

    What is the first step in budgeting for savings?

    <p>Repaying debts</p> Signup and view all the answers

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

    <p>To prepare for unexpected costs and important events</p> Signup and view all the answers

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

    <p>It is focused on high-priority items</p> Signup and view all the answers

    What is the purpose of calculating percentages for budgeting?

    <p>To allocate income to different categories</p> Signup and view all the answers

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

    <p>Gratuities (Tips)</p> Signup and view all the answers

    What is the purpose of creating a budget?

    <p>To balance income and expenditure</p> Signup and view all the answers

    What type of income is received from renting out property?

    <p>Rental Income</p> Signup and view all the answers

    What is the term for when income exceeds expenditure?

    <p>Surplus</p> Signup and view all the answers

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

    <p>Fixed income is regular while variable income changes over time</p> Signup and view all the answers

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

    <p>Profit</p> Signup and view all the answers

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

    <p>Bursary</p> Signup and view all the answers

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

    <p>Gifts and Pocket Money</p> Signup and view all the answers

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

    <p>To allocate resources effectively and make informed financial decisions</p> Signup and view all the answers

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

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

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

    <p>To track financial performance and make adjustments</p> Signup and view all the answers

    How can one increase the amount available for savings?

    <p>By reducing variable expenses</p> Signup and view all the answers

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

    <p>It allows for more effective planning and allocation of resources</p> Signup and view all the answers

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

    <p>To avoid paying interest on debt and reduce the debt burden</p> Signup and view all the answers

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

    <p>To prepare for unexpected expenses or events</p> Signup and view all the answers

    What is the primary benefit of monthly budgeting?

    <p>It ensures that expenses do not exceed income</p> Signup and view all the answers

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

    <p>Rental Income</p> Signup and view all the answers

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

    <p>To identify areas for cost reduction</p> Signup and view all the answers

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

    <p>To ensure financial stability and planning</p> Signup and view all the answers

    Which of the following statements is true about a budget?

    <p>A budget is a plan to balance income and expenditure</p> Signup and view all the answers

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

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

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

    <p>Rent</p> Signup and view all the answers

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

    <p>Profit is the difference between income and expenditure</p> Signup and view all the answers

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

    <p>It balances income and expenditure</p> Signup and view all the answers

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

    <p>To differentiate between regular and irregular income</p> Signup and view all the answers

    What happens when the total expenditure exceeds the total income?

    <p>A deficit occurs</p> Signup and view all the answers

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

    <p>The frequency of payment</p> Signup and view all the answers

    What is the purpose of a budget statement?

    <p>To display the income and expenditure of an individual</p> Signup and view all the answers

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

    <p>Profit is the difference between income and expenditure</p> Signup and view all the answers

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

    <p>To plan for unforeseen expenses</p> Signup and view all the answers

    What is the primary benefit of having a budget?

    <p>To balance income and expenditure</p> Signup and view all the answers

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

    <p>Tracking financial performance</p> Signup and view all the answers

    What is the primary purpose of drawing up a budget?

    <p>To plan for future expenses and save money</p> Signup and view all the answers

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

    <p>Reducing financial stress</p> Signup and view all the answers

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

    <p>The purpose of the financial assistance</p> Signup and view all the answers

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

    <p>To prepare for unexpected costs</p> Signup and view all the answers

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

    <p>To increase savings</p> Signup and view all the answers

    What is the primary benefit of monthly budgeting?

    <p>Ensuring expenses do not exceed income</p> Signup and view all the answers

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

    <p>To prepare for annual bills</p> Signup and view all the answers

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

    <p>To reduce debt</p> Signup and view all the answers

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