Edgenuity Unit 5 Taxes & Credit Review

The short tax return form designed for single and joint filers with no dependents or itemized deductions.

• Form 1040EZ

• Form 1040A

• Form 1040

• Form I-9

A _________ goes directly towards a balance on a loan. It does not got towards any interest.

• Payment

• Regular Payment

• Principal Disbursement

• Principal Payment

Credit backed by an asset

• Credit Card

• Secured Credit

• Unsecured Credit

• Lien

What does your credit score not tell lenders about you?

• Payment history

• Amount owed

• Where you live

• Length of credit history

Which of the following statements is true about Debt?

• Debt is the amount of money you have in your checking account.

• Debt is the ability to borrow money.

• Debt is the amount of money you have borrowed from a person or a business.

• Debt is the amount of money you have in a savings account.

Helps provide retirement income for the elderly and pays disability benefits

• Medicare tax

• Social Security tax

• State income tax

• Federal income tax

If you co-sign on a friend's car loan, what is the danger to you if your friend fails to make her car payment?

• You might get secured credit

• Your credit score might go down

• Your credit score might go up

• You might have to pay extra money in taxes

Revolving credit is...

• a type of credit that can be used repeatedly up to a certain limit as long as the account is open and payments are made on time.

• a type of credit that can be used only once up to a certain limit and must be closed immediately after all payments are due

• a spinning door with money in it

• a round device that holds credit cards and spins, making it easy to shuffle through all your credit cards quickly

The total amount you earn before any deductions are subtracted is called __________ pay.

• Gross

• Bonus

• Incentive

• Net

Why are companies required to withhold money from your paycheck?

• To make sure employees are being paid fairly

• To help employees save for retirement

• To help the company pay its share of taxes

• To make sure employees can pay their taxes