Personal Finance Material Flashcard

Front

How is a person's net worth determined according to the success criteria in the document?

Back

By determining the total assets and liabilities

Front

What does the term "income" refer to in the context of employment or investments?

Back

Money that is received from employment or investments

Front

Which of the following is NOT an example of wages? Salary, Tips, Dividends, Hourly wages

Back

Dividends

Front

What is typically required for independent contractor services in terms of documentation?

Back

Form 1099

Front

What is the purpose of Form 1040 in the U.S. tax system?

Back

To file an individual's annual income tax return

Front

Which type of information is typically included in Form 1040?

Back

Personal information such as Social Security number, dependents, wages, salary, capital gains, etc.

Front

What is Gross Pay as described in the context of analyzing a paystub?

Back

The amount of money that employees earn before taxes and other payroll deductions are withheld.

Front

What does Net Pay represent on a paystub?

Back

The amount of money that employees take home after taxes and other payroll deductions.

Front

Which of the following best describes 'Deductions' in a paystub? Options: The bonuses and incentives added to the base salary., The amount of money an employee earns before any deductions., Amounts withdrawn from a paycheck that include taxes and other elective deductions., The net amount deposited into an employee's bank account.

Back

Amounts withdrawn from a paycheck that include taxes and other elective deductions.

Front

What is the purpose of the Federal Insurance Contributions Act (FICA)?

Back

To fund the Social Security and Medicare programs