BMF Mid Semester Review

What is earned income?

• The income received from investments

• The income received from employment or self-employment

• The income received from winning a lottery

• The income received from selling personal items

How is overtime wage calculated?

• Hourly wage divided by 1.5

• Hourly wage plus regular pay

• Hourly wage multiplied by 1.5

• Hourly wage minus regular pay

What does the term 'payroll deductions' refer to?

• The bonuses received in addition to gross pay

• The amount added to gross pay for overtime work

• The subtraction from gross pay

• The total amount of gross pay

Which of the following is NOT a type of payroll deduction?

• FICA tax

• Federal and state taxes

• Allowance

• Health care contributions

What is the formula to calculate net pay?

• Net pay = gross pay + payroll deductions

• Net pay = gross pay - payroll deductions

• Net pay = gross pay / payroll deductions

• Net pay = gross pay * payroll deductions

What is the first step in budgeting your earnings?

• List estimated income

• Set a budget period

• Track Spending

• Compare

What is the last step in budgeting your earnings?

• List estimated income

• Set a budget period

• Track Spending

• Compare

Which type of expense varies and can go up and down during the budget period?

• Fixed expense

• Variable expense

• Estimated expense

• Tracked expense

What does variance represent in the context of budgeting?

• The amount of taxes owed by the taxpayer

• The difference between actual amounts and budgeted amounts

• The total amount of unearned income

• The estimated expenses for the budget period

What is a tax return?

• A report listing all personal expenses

• A document showing the budget period

• A report containing information used to calculate taxes owed by the taxpayer

• A summary of variable expenses