GCM EPF Unit 5-8 Vocab Review Questions

What term describes the money remaining from an employee's paycheck after all deductions have been taken out?

• Gross income
• Net pay
• Base salary
• Commission

Which of the following is NOT typically considered a source of income?

• Wages from employment
• Credit card debt
• Investment dividends
• Rental property income

What document determines the amount of federal income tax withheld from your paycheck?

• W-2 form
• 1099 form
• W-4 form
• I-9 form

Which type of education typically results in the highest lifetime earnings potential?

• High school diploma
• Associate's degree
• Technical certification
• Graduate degree

What is the term for additional compensation beyond base salary that employers offer?

• Benefits
• Allowances
• Incentives
• Bonuses

Which of these is considered a mandatory payroll deduction?

• Health insurance premiums
• 401(k) contributions
• Social Security tax
• Charitable donations

What term describes payment based on a percentage of sales made?

• Bonus
• Commission
• Salary
• Wage

Which employee benefit is required by federal law for most employers to provide?

• Health insurance
• Paid vacation
• Workers' compensation
• Retirement plans

What factor most significantly impacts lifetime earning potential?

• Geographic location
• Education level
• Starting salary
• Company size

Which income source is typically considered passive income?

• Overtime pay
• Hourly wages
• Investment returns
• Commission sales