Final Exam Review

Your filing status on your tax return is based on what?

• Your marital status.

• Your income level.

• Your occupation.

• Your age.

What type of information should you not put on a resume?

• personal information, including age, gender, and marital status.

• your educational background and degrees.

• your relevant work experience.

• your professional skills and certifications.

Allowances are ________________ to the amount of income tax that must be withheld from your paycheck.

• deductions

• additions

• multipliers

• penalties

In a ________________ audit, the IRS sends a letter to the taxpayer, asking him or her to answer specific questions about the tax return.

• Correspondence

• Field

• Office

• Random

Rate × Hours Worked = __________________

• Gross pay

• Net pay

• Tax withheld

• Deductions

In most cases, the amount of "take-home pay" an employee receives is about what percentage of gross pay?

• about 65 to 70 percent of gross pay.

• about 80 to 85 percent of gross pay.

• about 50 to 55 percent of gross pay.

• about 90 to 95 percent of gross pay.

Checking your credit report frequently can help with early detection of ___________.

• Identity theft

• Credit score improvement

• Loan approval

• Tax refunds

In the United States, the responsibility for filing a tax return rests with the individual. This defines the concept of ____________________________

• Voluntary compliance

• Mandatory withholding

• Tax evasion

• Government assessment

Which are easier to change in the short run, fixed or variable expenses?

• variable

• fixed

• both equally

• neither

In a balanced budget, ______________ + _______________ = _______________ + _______________.

• expenses + savings = earnings + borrowing

• earnings + expenses = savings + borrowing

• savings + borrowing = earnings + expenses

• expenses + borrowing = savings + earnings