Advanced Personal Finance Final Exam Study Guide

Front

Principal × Rate = Interest.

Back

False

Front

Which of the following is NOT a way to limit the amount of income tax you owe?
tax-deferred investments,
home ownership,
tax-exempt investments,
filing your taxes online

Back

filing your taxes online

Front

Common taxes on purchases are sales tax and gift tax.

Back

True

Front

The person named in a life insurance policy to receive benefits.

Back

beneficiary

Front

These stockholders have voting rights in a corporation.

Back

common stockholders

Front

An endorsement that allows you to transfer a check to another person.

Back

full endorsement

Front

A person's reputation for paying bills on time.

Back

credit rating

Front

A person who must rely on another for financial support.

Back

dependent

Front

Results from wages, salary, commission, fees, tips, and bonuses.

Back

earned income

Front

A tax deduction for the taxpayer, a spouse, and each dependent.

Back

exemption