Unit 7 Review

Scarlet wants to buy a box of paint brushes at the art store.

She does not have any checks, but she wants the money to come from her checking account.

Which method of payment best meets Scarlet’s needs?

• Cash

• Credit card

• Debit card

• Not here

Amelia made this list of her monthly expenses. 

Amelia’s net income for the month is $2,035.

How much money does she have for other expenses?

• $3,435

• $635

• $785

• $1,300

Which statements about income tax, payroll tax, sales tax, and property tax are true?

Select TWO correct answers.

• Payroll tax is a tax an employer withholds from an employee’s salary to pay on the employee’s behalf.

• Social security is an example of a sales tax.

• Income tax is paid by the employer.

• Income tax is a tax paid on the money that a person or business receives as income.

• Sales tax is a tax paid on the purchase of goods and/or services and collected by the buyer.

Maritz was making a list of expenses to make a balanced budget.

If he makes $625, what changes should be made to balance his budget?

• Increase his water budget by $15

• Decrease his clothing budget by $25

• Decrease his savings account budget by $65

• Increase his saving budget by $25

Timothy's net income for the month of April was $2,538. The table shows his April budget except for an amount in the "other" category.

What amount, in dollars and cents, should be in the "other" category in order for Timothy's budget to be balanced.

• 203

• 103

• 553

• 130

• 25

Which of these statements about gross income and net income are true?

• Gross income is a tax on all income that an employee earns.

• Net income is the total amount an employee earns before deductions are applied.

• Gross income is the amount an employee is paid after deductions and taxes.

• Net income is the amount an employee is paid after deductions and taxes.