MSCS Personal Finance Pre-Test

Front

What is the purpose of the IRS W-4 form?

Back

The IRS W-4 form helps determine the amount of federal income tax to withhold from an individual's paycheck.

Front

What type of transaction appears in the Debits column of a bank statement?

Back

An online bill payment appears in the Debits column of a bank statement.

Front

True or False: Increases to accounts are always on the debit side and decreases are always on the credit side.

Back

FALSE

Front

What does credit allow individuals to do?

Back

Credit allows for purchases without cash.

Front

What is an example of a credit in personal finances?

Back

A bonus check from work is an example of a credit in personal finances.

Front

What is a debit in personal finance?

Back

A debit is a transaction that decreases the balance of an account, such as a withdrawal or payment.

Front

What is the difference between a credit and a debit?

Back

A credit increases the balance of an account, while a debit decreases it.

Front

What is the significance of a bank statement?

Back

A bank statement summarizes all transactions in an account over a specific period, showing deposits, withdrawals, and the ending balance.

Front

What is the role of interest in personal finance?

Back

Interest is the cost of borrowing money or the earnings from savings, expressed as a percentage.

Front

What is a budget?

Back

A budget is a plan that outlines expected income and expenses over a specific period.