EPF 2nd Semester Exam

How is money earned on an hourly basis classified?

• Salary

• Wage

• Bonus

• Commission

What is the purpose of the W-4 form?

• To report your annual income to the IRS

• To determine how much money your employer withholds from your paycheck for income taxes

• To calculate your eligibility for government benefits

• To record your personal identification information for employment records

Which one tells you your earnings BEFORE taxes?

• Gross Pay

• Net Pay

• Commissions

• Overtime

Which one is extra money you can make from working more than your scheduled or selling extra items?

• Gross Pay

• Net Pay

• Commissions

• Overtime

Which one tells you your earnings AFTER taxes?

• Gross Pay

• Net Pay

• Commissions

• Overtime

What is the purpose of filing income taxes?

• To show your disagreement about taxes to the government

• To avoid paying taxes altogether

• To increase your tax bill

• To determine if you owe additional taxes or if you are owed a refund

When the stock market is doing well, the jargon term is

• Bear Market

• Duck Market

• Tiger Market

• Bull Market

What is a Traditional IRA?

• A Traditional IRA is a type of individual retirement account that allows individuals to contribute pre-tax income to their retirement savings.

• A Traditional IRA is a type of individual retirement account that allows individuals to contribute post-tax income to their retirement savings.

• A Traditional IRA is a type of individual retirement account that does not offer any tax advantages.

• A Traditional IRA is a type of individual retirement account that is only available to individuals over the age of 70.

What is a Roth IRA?

• A Roth IRA is a type of individual retirement account that allows individuals to contribute after-tax income but taxes are still owed on withdrawals in retirement.

• A Roth IRA is a type of individual retirement account that requires individuals to contribute before-tax income and pay taxes on withdrawals in retirement.

• A Roth IRA is a type of individual retirement account that allows individuals to contribute after-tax income and enjoy tax-free growth and withdrawals in retirement.

• A Roth IRA is a type of individual retirement account that does not allow individuals to contribute after-tax income and taxes are owed on both contributions and withdrawals in retirement.

What is a 401(k) account?

• A 401(k) account is a type of credit card.

• A 401(k) account is a government assistance program.

• A 401(k) account is a type of insurance policy.

• A 401(k) account is a retirement savings plan sponsored by an employer.