Financial Algebra 2nd semester final exam review

What does the term "withholding" mean in reference to your paycheck?

• The amount of your paycheck that you are NOT being taxed on

• How much you are going to owe the government when you file your annual tax return

• How much you earn and includes salary, bonus and commissions

• How much is being taken out of your paycheck for things like taxes, employer sponsored health insurance, and retirement

Which of the following describes what a "dependent" is for tax purposes?

• A child or adult that you support financially

• Someone who is temporarily disabled

• An adult who financially supports you

• 1. Someone who is a full-time student under the age of 30

Isaiah has a summer internship at a technology company and is paid $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?

• His gross pay is $2,500 and net pay is $3,000

• His gross and net pay are $3,000

• His gross and net pay are $2,500

• His gross pay is $3,000 and net pay is $2,500

What is an example of entrepreneurship?

• Working for a large corporation

• Saving money in a bank account

• Starting a new business

• Investing in the stock market

On the first day of every month, Raina sits down at her computer, builds a spreadsheet, and allocates all of her income toward expenses or saving. There's no dollar that is unaccounted for in her budget. Which strategy is Raina using?

• Cash envelope system

• 50/30/20 budgeting

• Zero-based budgeting

• Expense management

Which of the following best describes a business plan?

• A document that is legally required in order to start a business

• A document that will allow you to expand your business to other states

• A document that outlines your goals and how you plan to achieve them

• A document that protects your business from bankruptcy in its first year of operation

In retirement, it's common to rely on income from all of the following sources EXCEPT…

• Social Security

• Pension Income

• Government loan

• Investment Income

In which business type(s) can the business owner(s) find themselves personally liable?

• Sole proprietorship and partnership

• Limited liability corporation

• C corp, S corp, and B corp

• Nonprofit

What is the deadline to file your tax return, and what can you do if you know you will miss that deadline?

• April 15

• File an extension

Which consideration before starting a business will help most if you run into cash flow problems (not having cash when you need it)?

• Know the law

• Pay off your debt

• Get the right insurance

• Build an emergency fund