EPF Unit 4 Financial Planning Review

Front

Which of the following best describes "Disposable Income"? A) The total earnings received after all deductions have been made, B) A sum of money paid regularly by a company to its shareholders out of its profits, C) The total earnings before any deductions are made, D) Income from properties or investments

Back

The total earnings received after all deductions have been made

Front

What does "Passive Income" refer to?

Back

Earnings derived from a rental property, limited partnership, or other enterprise in which a person is not actively involved.

Front

What is a "Fixed Cost"?

Back

A cost that does not change with an increase or decrease in the amount of goods or services produced.

Front

Choose the accurate definition for "Variable Cost":

Back

A cost that varies with the level of production.

Front

The term "Wage" refers to:

Back

Payment for labor or services to workers, especially remuneration on an hourly, daily, or weekly basis.

Front

"Salary" can be defined as: A fixed regular payment, typically paid on a monthly or biweekly basis, but often expressed as an annual sum

Back

A fixed regular payment, typically paid on a monthly or biweekly basis, but often expressed as an annual sum

Front

"Gross Income" is best described as:

Back

The total income before any deductions such as taxes or retirement contributions

Front

"Net Income" refers to:

Back

The sum of money received after all deductions, such as taxes and retirement contributions.

Front

A "Dependent" refers to:

Back

A person who relies on another, especially a family member, for financial support.

Front

Which statement best describes an insurance "Premium"?

Back

The amount paid periodically to the insurer by the insured for covering their policy.