Chapter 2 Business Math Test Review

Which of the following is an example of a job benefit?

• child care

• paid holidays

• recreational factilies

• all of the above

Which term describes a tax rate that does not change with respect to an employee’s income level?

• steady

• rigid

• variable

• flat

Which of the following describes how to calculate net pay?

• Subtract the total deductions from the gross pay.

• Add the total deductions to the gross pay.

• Add the total deductions to the gross pay.

• Subtract the total deductions from the net pay.

Which term describes the amount of money on which a person must pay taxes?

• pension

• taxable income

• net income

• withholding

In a graduated tax system,

• the tax rate gets higher as taxable income gets larger.

• the tax rate gets higher as taxable income gets smaller.

• the tax rate gets lower as taxable income gets larger.

• the tax rate stays the same regardless of taxable income.

Which of the following describes how to calculate an employee’s net job benefits?

• Add the gross pay and the employee benefits.

• Add the gross pay and the employee benefits and subtract the job expenses.

• Subtract the job expenses from the employee benefits.

• Subtract the employee benefits from gross pay.

Workers may claim one withholding allowance for which of the following?

• each child or dependent

• their spouse

• themselves

• all of the above

Things of value provided by an employer such as health insurance, vacation time, and merchandise discounts

• employee benefits

• job expenses

• deductions

• all of the above

Another name for employee benefits is

• employee goods

• fringe benefits

• French benefits

• employee expenses

An amount of money subtracted from gross pay

• deduction

• fringe benefit

• net pay

• employee benefit