Ch 2 Money Matters

Taxes on your 401K plan; do you pay on the money that goes in BEFORE or AFTER it is withdrawn?

• Before

• After

Property tax is based on the property's

• assessed value

• market value

• original cost

• None

All of the following are examples of pay without work except:

• sick leave

• profit sharing

• personal leave

• vacation

All of the following are examples of earned income except:

• wages

• comissions

• dividends

• All

Which of the following is true of public goods?

• Everyone benefits

• People do not benefit in direct proportion to taxes paid

• No one can be excluded from them

• All of the above

To qualify for education reimbursement, the employee has to ________.

• Pay money to the company

• Work for the company for a set period of time

• do nothing

Which of the following statements regarding Social Security tax is correct?

• Employers and employees each pay half of social security

• employers pay the entire amount

• employee pay the entire amount

Tips received by a person for performing a service are not subject to federal income taxes.

• True

• False

Does a salaried employee have to clock in and out for shifts?

• Yes

• No

Gambling winnings are a form of earned income and therefore are subject to income tax.

• True

• False