Question

Mrs. Taylor receives a paycheck of $1,600 every month. She writes checks to pay the rent, bills, and other expenses. Which of the following is the BEST way for Mrs. Taylor to keep track of her income and expenses?

A. Put receipts in a shoe box.
B. Remember expenses without recording them.
C. Use a credit card statement to show expenses.
D. Record expenses in a check register.​

Answer 1

D. record expenses in a check register

Explanation:

The BEST way for Mrs. Taylor to keep track of her income and expenses is to record expenses in a check register, option D.

A check register is a written or electronic record that helps to keep track of all the checks written, deposits made, and account balances. By recording all expenses in a check register, Mrs. Taylor can easily see how much money she has spent and how much money she has left for the month.

Putting receipts in a shoebox, option A, may make it difficult to keep track of all the expenses in one place, and remembering expenses without recording them, option B, is not reliable as it is easy to forget some expenses. Using a credit card statement to show expenses, option C, is not ideal as it may not include all expenses, and it may not accurately reflect the current balance in Mrs. Taylor's bank account. Therefore, option D is the best option to help Mrs. Taylor keep track of her income and expenses.