Financial Vocab & Taxes Quiz

Which of the following best describes the purpose of a budget in personal finance?

• To record and summarize past financial transactions

• To plan future income and expenditures

• To calculate taxes owed to the government

• To track stock market performance

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DOK Level 2: Skill/Concept

What type of tax is charged directly on personal income?

• Sales tax

• Excise tax

• Income tax

• Property tax

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DOK Level 2: Skill/Concept

In budgeting, what does the term "fixed expenses" refer to?

• Costs that vary month to month

• Costs that do not change from month to month

• Unexpected costs

• Costs that can be postponed

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DOK Level 2: Skill/Concept

What is a sales tax?

• A tax on income earned from sales

• A tax on the profit made from selling goods

• A tax on the purchase price of goods and services

• A tax on the ownership of business assets

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DOK Level 2: Skill/Concept

Which of the following is an example of a variable expense in personal budgeting?

• Rent payments

• Monthly car insurance premium

• Electricity bill

• Mortgage payment

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DOK Level 2: Skill/Concept

What type of tax is paid when you buy something at a store?

• Income tax

• Property tax

• Excise tax

• Sales tax

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DOK Level 2: Skill/Concept

In budgeting, what is meant by "discretionary spending"?

• Spending on essential expenses like rent and utilities

• Spending on non-essential items like entertainment and dining out

• Spending that is fixed and cannot be changed

• Spending that is required by law, like taxes

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DOK Level 2: Skill/Concept

What is a property tax primarily based on?

• The income generated from the property

• The value of the property

• The size of the property in acres

• The age of the property

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DOK Level 2: Skill/Concept

Which of the following would be considered a capital expenditure in a company's budget?

• Monthly utility bills

• Employee salaries

• Purchasing a new office building

• Office supplies

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DOK Level 2: Skill/Concept

What does the term "gross income" refer to on a financial statement?

• Income after taxes

• Income before any deductions

• Only income from sales

• Only income from investments

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DOK Level 2: Skill/Concept