CH 16 Money Mgmt & Finc Planning Intro Bus

All the following are examples of tax deductions EXCEPT

• contributions to charitable organizations.
• certain medical expenses.
• rent expense.
• interest paid on a home mortgage or home equity loan.

Take-home pay is

• the amount of a paycheck before taxes and other payroll deductions.
• the money you have available to spend as a result of working plus any other income, such as a gift or stock dividend.
• cash inflows minus cash outflows.
• the amount you will receive when you cash your paycheck

Which of the following is a variable expense?

• rent
• groceries
• mortgage payment
• insurance premium

A successful budget

• should not need to be re-evaluated once it is in place.
• should be flexible.
• should never show any variances.
• should be flexible.

Federal tax return mistakes can be avoided by

• filing online or mailing your return before the deadline.
• signing the completed return.
• using the proper tax forms, tax tables, and correct filing status.
• all of the above

A tax on gasoline is known as a(n)

• income tax.
• estate tax.
• excise tax.
• gift tax.

Your net worth is

• the difference between your personal assets and your liabilities.
• the total amount of all of your investments.
• the total value of your personal assets.
• what you have left over in your paycheck each week after deductions are taken out.

Your birth certificate and Social Security card would likely be contained in which category of your financial records filing system?

• personal records
• tax records
• money management records
• housing records

If actual spending is greater than planned spending, it is referred to as a

• surfeit.
• surplus.
• deficit.
• liability.

When you make a loan payment, your

• cash outflows decrease.
• net income increases.
• net worth is unaffected.
• liabilities decrease.