8
QuizMultiple Choice

Personal Budget

Question 8 • (Kapuschinsky)WCA 3424 Consumer Applications 1st nine weeks 26-27

Give an example of when an actual net income would result in a negative number.

Answer
A
When the budgeted expenses exceed the actual expenses, the result is a negative actual net income.
B
When the actual expenses exceed the actual income, the result would be a negative dollar amount.
C
When the budgeted income is less than the actual income, the result is a negative actual net income.
D
When the actual expenses are less than the actual income, the result is a negative dollar amount.

Explanation

Actual net income is calculated by subtracting actual expenses from actual income. If actual expenses are greater than actual income, the subtraction gives a negative result. Therefore, the correct choice is “When the actual expenses exceed the actual income.”

AI-written and checked against the verified answer.

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