Accounting Fundamentals Certification (AFC) Practice Test

In the context of personal finance, when a person's total income exceeds their total expenses, it results in a financial surplus. This means that they are spending less than they are earning, allowing them to save or invest the difference.

In Pierre’s situation, since his total income is higher than his total expenses, he has a surplus. The specific amount of the surplus is determined by subtracting his total expenses from his total income. If we assume that Pierre's total income minus his total expenses equals $1,350, then he has a surplus of $1,350.

This is indicative of a sound financial situation, as it allows for future financial planning, savings, or investment opportunities. Options indicating a deficit (such as the third and fourth choices) would not apply, as they describe situations where expenses exceed income, which is contrary to the information given about Pierre's financial state.