SPRING FINAL EXAM 2024

If I am an independent contractor, I have to fill out a...

• W-4

• 1099

• I-9

• W-2

Why should you accurately complete a W-4 form any time you start a new job or change your tax status?

• Completing a W-4 will guarantee you receive a large tax refund

• You need a copy of your W-4 to file your tax return annually

• Your W-4 determines how much Federal income tax money your employer should withhold

• Your W-4 determines your total tax bill at the end of the year

How much of your income do experts recommend investing in a 401(k) account?

• 5%

• 12%

• 7%

• 10%

You go to a restaurant and order a big meal. Even though you’re full, you keep eating because it was expensive. This is an example of...

• Sunk Cost

• Fear of Missing Out

• Mental Accounting

• The Endowment Effect

All of the following are advantages of saving for retirement in a 401(k), EXCEPT...

• You can withdraw money at any time without paying a penalty

• 401(k) has a higher contribution limit than an IRA

• Your 401(k) contributions are tax-deductible

• Some employers will match contributions to your 401(k)

All of these are red flags that someone is likely a scammer EXCEPT…

• They ask you for personal or financial information

• They respond to an inquiry you made regarding your bank account

• They threaten to report you to law enforcement authorities

• They have an urgent need for money

What is most important in a business plan?

• Executive Summary

• Market & Sales Strategy

• Business Details

• Financial Plan

Which is NOT an example of an investment?

• Bonds

• Stocks

• Savings Accounts

• IRAs

Before putting personal or financial information online, how do you know if a website is secure?

• A pop up will appear stating "SECURE WEBSITE"

• A secure website always requires you to login with a username and password

• The URL will change to https://

• All websites are secure so it is always okay to put your personal and financial information online

When you sit down to file your 1040 form, which document(s) should you have in front of you?

• I-9 form(s)

• Checking account statements from last year

• W-2 form(s)

• W-4 form(s)