Question

1. wong has recorded his income and expenses below. identify the income and expenses. classify the income as regular or variable, and the expenses as recurring or variable.

item\tincome\texpense
paycheque\t\t
rent\t\t
car insurance\t\t
gas\t\t
clothing\t\t
cell phone bill\t\t
mother’s day gift for mom\t\t
groceries\t\t
present for joan\t\t
entertainment\t\t
mowing lawns\t\t
utilities\t\t

Explanation:

Step1: Identify income items

Paycheque and mowing lawns are income. Paycheque is usually a regular income as it is often received on a set - schedule (e.g., monthly, bi - weekly). Mowing lawns is variable income as the amount and frequency of earnings can vary.

Step2: Identify expense items

Rent, car insurance, gas, clothing, cell phone bill, Mother's Day gift for mom, groceries, present for Joan, entertainment, and utilities are expenses. Rent, car insurance, cell phone bill, and utilities are recurring expenses as they are paid regularly. Gas, clothing, groceries, entertainment are variable recurring expenses as the amount can vary each time. Mother's Day gift and present for Joan are variable non - recurring expenses.

Answer:

Item	Income	Expense
Rent		Recurring expense
Car insurance		Recurring expense
Gas		Variable recurring expense
Clothing		Variable recurring expense
Cell phone bill		Recurring expense
Mother's Day gift for mom		Variable non - recurring expense
Groceries		Variable recurring expense
Present for Joan		Variable non - recurring expense
Entertainment		Variable recurring expense
Mowing lawns	Variable income
Utilities		Recurring expense