Credit Decisions Quick Check
1 of 51 of 5 Items
Question
James has prepared his income statement:
Income
Salary 3,500
Tax withholding (490)
401(k) 0
Health insurance (210)
Net salary 2,800
Total net income $2,800.00
Expenses
Rent (900)
Utilities (325)
Internet (62)
Credit card payments (200)
Food (625)
Clothes (200)
Transportation (200)
Entertainment (400)
Total expenses $2,912.00
Difference ($112.00)
The bottom line of James’s income statement shows a negative number. What does this mean?
(1 point)
Responses
He entered the incorrect amount for his rent.
He entered the incorrect amount for his rent.
He is spending more money than he makes.
He is spending more money than he makes.
He is not contributing to his 401(k).
He is not contributing to his 401(k).
He spends $200 a month on clothes.
He spends $200 a month on clothes.
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