Financial Literacy Test

Mrs. Gregory is explaining a type of tax to her daughter. Use Mrs. Gregory’s quote below to determine the type of tax she is explaining.

• Property tax

• Payroll tax

• Income tax

• Sales tax

Enzo is a firefighter who earns an annual salary of $57,928 before taxes or deductions. He owes $13,481 in taxes last year. Which statement(s) is true?

• Enzo's gross income is $57,928

• Enzo's net income is $71,409

• Enzo's net income will always be less than his gross income

• None of the statements are correct

Which of the following is NOT true about payroll taxes?

• Payroll taxes are paid by the employer.

• Payroll taxes help fund Social Security.

• Payroll taxes are taken from a paycheck.

• Payroll taxes are collected on a purchase.

Trevor owns a small landscaping business in Florida. He paid $2,057 in taxes on the money he earned from his business last year. What type of tax did he pay?

• Sales tax

• Property tax

• Income tax

• Excise tax

Mrs. Edmund asked her students to write an advantage of using a credit card. Which student completed the task correctly?

• Adam and Rebecca only

• Adam and Ziggy only

• Rebecca and Ziggy only

• Adam, Rebecca and Ziggy

Based on the financial record above, how much did it cost for Wags and Wiggles to purchase more dog shampoo?

• $17.20

• $26.60

• $12.75

• $30.00

What is the amount of available funds in the account at the end of the day on May 15?

• $815.20

• $900.00

• $750.50

• $680.75

Amy is buying a swing set for her backyard. Which of the following describes a disadvantage if Amy chooses to pay with a check?

• She will have to use a PIN number.

• Paying with a check is not an immediate form of payment.

• She may owe interest on her purchase.

• She can send the check in the mail.

Jasper works 17 hours a week at the bowling alley. He earns $8 an hour. Which statement about his weekly income is true?

• Jasper’s gross income is less than $136.

• Jasper’s gross income is more than $136.

• Jasper’s net income is less than $136.

• Jasper’s net income is more than $136.

Talia and Ayla each made a statement about their income. Which student made a true statement?

• Talia only

• Ayla only

• Both Talia and Ayla

• Neither Talia nor Ayla