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PoBMF - CH 18 INCOME & TAXES REVIEW

Total questions: 24

Worksheet time: 12mins

Name
Class
Date
1.

A process used by individuals to manage limited income to meet personal unlimited needs and wants is called_____________.

a)

want management

b)

money decisions

c)

personal financial management

d)

wealth management

2.

_________ is income received from self-employment.

a)

Minimum wage

b)

Earned income

c)

Annual revenue

d)

Overtime wage

3.

A person who has the ability to understand basic topics related to finance is _______________.

a)

business savvy

b)

accounting capable

c)

financially capable

d)

investment savvy

4.

An expense that is equal in amount each budget period is a(n) ____________.

a)

fixed expense

b)

variable expense

c)

annuity

d)

standard deduction

5.

The difference between a budgeted dollar amount and the actual dollar amount is a(n) ____________________.

a)

profit

b)

expense

c)

variance

d)

income

6.

An expense that can go up and down during the budget period is a(n) ____________________.

a)

allowance

b)

exemption

c)

fixed expense

d)

variable expense

7.

An amount that a taxpayer can claim for each person who is dependent on that person's income in a(n) ____________.

a)

itemized deduction

b)

standard deduction

c)

exemption

d)

allowance

8.

A ___________ is an amount that is subtracted from adjusted gross income, which further reduces taxable income.

a)

tax return

b)

tax deduction

c)

tax credit

d)

variance

9.

Tax returns must be filed no later than _________ each year.

a)

December 31

b)

January 15

c)

June 1

d)

April 15

10.

Taxes paid by the employee and the employer that are used to finance the federal Social Security and Medicare programs are ________ taxes.

a)

FICA

b)

net

c)

W-4

d)

deduction

11.

What is the amount on which taxes are calculated?

a)

tax credit

b)

itemized deduction

c)

net pay

d)

taxable income

12.

What is the definition of earnings from other sources other than work?

a)

unearned income

b)

allowance

c)

earned income

d)

net pay

13.

What is the term for fixed amount that may be deducted from adjusted gross income?

a)

standard deduction

b)

tip

c)

wage

d)

bonus

14.

What is the amount of earnings not subject to income taxes?

a)

allowance

b)

net pay

c)

exemption

d)

itemized deduction

15.

What is money paid for service beyond what is required?

a)

tip

b)

wage

c)

bonus

d)

net pay

16.

What is the income in the form of a wage, salary, or commission?

a)

earned income

b)

standard deduction

c)

exemption

d)

tax credit

17.

What is the form that helps an employer determine an employee's payroll deductions?

a)

Form W-4 Employee's Withholding Allowance

b)

Form W-2 Wage and Tax Statement

c)

1040A

d)

1040EZ

18.

What is the amount that is subtracted from the taxes an individual owes if eligible?

a)

tax credit

b)

gross pay

c)

tip

d)

bonus

19.

What is the payment for work and is usually calculated on an hourly, daily, or weekly basis?

a)

wage

b)

tip

c)

bonus

d)

exemption

20.

What is gross pay minus payroll deductions?

a)

net pay

b)

gross pay

c)

commission

d)

salary

21.

What is money added to an employee's base pay?

a)

bonus

b)

taxable income

c)

wage

d)

exemption

22.

What is the term for amount that a taxpayer can claim for each person who is dependent on that person's income?

a)

exemption

b)

taxable income

c)

wage

d)

tip

23.

What is the term for an allowed expense that can be deducted from adjusted gross income?

a)

itemized deduction

b)

net pay

c)

gross pay

d)

tip

24.

What is the term for the form that shows earnings and tax deductions withheld during the year?

a)

earned income

b)

Form W-4 Employee's Withholding Allowance

c)

Form W-2 Wage and Tax Statement

d)

net pay