Dave Ramsey Chapter 10 and 11 Review

Front

What is the purpose of filling out Form W-4 correctly?

Back

To ensure that the correct amount of taxes is withheld from your paycheck, avoiding overpayment or underpayment.

Front

What is a leasing contract?

Back

A legal document that allows the renter (tenant) to use the property for a specified period of time.

Front

What is the term for the money you earn hourly for your time and effort at work?

Back

Wages.

Front

What can you produce by buying and selling stocks, bonds, mutual funds, and real estate?

Back

Portfolio/investment income.

Front

Who is most likely to need the help of a tax professional?

Back

Self-employed people.

Front

What is the difference between wages and salary?

Back

Wages are typically paid hourly, while salary is a fixed amount paid over a period of time, regardless of hours worked.

Front

What are capital gains?

Back

Profits from the sale of an asset, such as stocks or real estate, that has increased in value.

Front

What is the significance of understanding your tax bracket?

Back

It helps you understand how much tax you will owe based on your income level.

Front

What is the role of a tax professional?

Back

To provide guidance and assistance in preparing and filing taxes, especially for complex situations.

Front

What is the minimum wage?

Back

The lowest legal hourly pay that can be paid to workers.