NEW
Font size
WorksheetsFin Lit 2 Test Review
Total questions: 36
Worksheet time: 19mins
A financial advisor is explaining to a client about different types of income. All of the following are examples of earned income EXCEPT:
net earnings from the client's small business
dividends from the client's stock investments
commissions from the client's property sales
wages from the client's job
A person has various sources of income. All of the following are examples of unearned income EXCEPT:
interest from a savings account
government transfer payments received
tips received from a part-time waiter job
dividends from investments
Consider a public park in your city. Which of the following is true about this public good?
people do not benefit in direct proportion to taxes paid for its maintenance
everyone in the city benefits from it
no one can be excluded from using it
all of these are characteristics of the public park
A student is studying different types of taxes for an economics class. The term 'progressive tax' comes up. Which of the following taxes would be considered a progressive tax?
FICA
sales tax
Federal income tax
property tax
A property owner needs to pay property tax. The amount of tax to be paid is based on the property's
market value
assessed value
original cost
none of these
Consider a scenario where you are employed at a company. Which of the following statements regarding the social security tax that you and your employer pay is correct?
Your company pays the entire amount of social security tax
Both you and your company each pay half of the social security tax
As an employee, you are not subject to pay social security tax
You pay the entire amount of social security tax
An employee is reviewing their paycheck and notices several deductions. Which of the following is NOT an optional deduction that might appear?
health insurance
savings plan
Medicare
Life Insurance
An employee at XYZ Corp is considering which benefits are most valuable. Which of the following would be considered a perk?
Access to the company's fitness center
Ability to work flexible hours
Receiving employee discounts on company products
All of the following
Michael is a mechanic who worked 42 hours last week. His regular pay is $10 an hour or $400 for the regular hours.For any overtime work (over 40 hours), he is paid 1.5 times his regular pay. How much did he earn last week?
$430
$400
$420
$30
Katrina went shopping for a party. She bought a pair of stylish shoes for $55.00, a pair of trendy jeans for $29.99 and a fashionable shirt for $27.79. The sales tax in her city is 7%. Approximately how much did she end up paying in sales tax?
$120.67
$112.78
$7.89
$104.89
A part-time worker at a local store is curious about the lowest pay rate that the law allows for each regular hour of work. What is it called?
minimum wage
base pay
starting pay
A waiter at a restaurant believes that the tips received from customers are not subject to tax. Is this true?
True
False
Interest received from a savings account and dividends from stock investments are considered unearned income. Are these forms of income taxable?
True
False
A customer went to a store to buy a television priced at $500. The final price paid was $525 due to sales tax. In this scenario, sales tax is a form of indirect tax.
True
False
A businessman has recently started using e-filing for his tax returns. He noticed that his refunds are received much more quickly than when he used to file paper tax returns. Is this a common occurrence?
True
False
A software engineer is considering whether they can change the number of dependents claimed on their W-4 form at any time during the year. Is this possible?
True
False
A government official is responsible for managing transfer payments. The official has to make a payment on behalf of a citizen, but not in the form of money. This type of payment would be known as
in-cash payments
entitlement programs
in-kind payments
transfer payments
An employee at a multinational company receives various benefits. Which statement is true about the benefits provided?
Some benefits received help the employee reach financial goals.
The employee is taxed on most benefits received from the company.
The employee would have access to all benefits offered by the company on their own.
Group insurance costs at the company are more expensive than individual policies.
An employee at XYZ Corp contributes to their pension plan. The employer, XYZ Corp, also contributes to the same pension plan.
True
False
Imagine you are on a road trip and you come across a bridge. To cross the bridge, you are required to pay a fee. This fee is an example of a(n)
sales tax
excise tax
luxury tax
use tax
Imagine you are working in a company and some amount is deducted from your paycheck for retirement savings like 401k, insurance or health care, and donations to charity. These deductions are considered:
Voluntary deductions
Mandatory Deductions
Tax Deductions
Payroll Deductions
An employee just received their paycheck from a new job. The amount that can actually be spent or saved, after all deductions, is referred to as:
Pay Rate
Base Pay
Net Pay
Gross Pay
TRUE or FALSE: When someone receives a job offer from a prestigious company, they should consider the benefits package as an important factor in their decision.
True
False
A candidate is considering a new job offer. Which of the following would be considered a BENEFIT?
Offered vacation time
Eligibility for Social Security
Proposed salary
Availability of private insurance
Consider the benefits provided by your employer, XYZ Corp. How should you view these benefits?
As free things you are entitled to from XYZ Corp.
As part of your total salary package at XYZ Corp.
As perks of XYZ Corp. which you get to select from.
As perks at XYZ Corp. which you have to pay towards.
Imagine you are hiring for a job position. Which of the following would be considered a soft skill that a candidate might possess?
Proficiency in using spreadsheets
Fast typing speed
Ability to work well in a team
Expertise in resume writing
A new employee is confused about FICA on their paystub. According to you, FICA is:
A soccer league.
A tax act.
A salary bonus.
A bank procedure.
A small business owner is trying to understand their obligations under FICA. Which of the following correctly describes what FICA includes?
Social Security and Medicare tax.
Social Security and Maternity Leave tax.
Income and Medicare tax.
Income and Social Security tax.
A person is planning for retirement and is considering their social security contributions. Which of the following is true about social security (select the most appropriate answer):
It won't be there when they retire : (
It's just the government's way of taking their money.
The more a person contributes, the more they will receive when they retire.
Contributing to social security is optional.
A software engineer receives a certain amount of money on a regular basis for their work. This is known as?
Values
Taxes
Income
Fixed Cost
Sarah receives her paycheck and notices that a portion has been withheld for Medicare. What is this deduction called?
Income tax
Property tax
FICA tax
Sales tax
Which of the following is considered earned income?
Interest from a savings account
Government transfer payments
Dividends from stocks
Salary from a full-time job
When reviewing a job offer, which of the following is NOT typically included in the benefits package?
Sales tax refund
Paid vacation
Retirement plan
Health insurance
Which of the following is NOT subject to income tax?
Commission from sales
Inheritance received from a relative
Interest earned from a bank deposit
Salary from a part-time job
Which of the following is an example of a mandatory payroll deduction?
Social Security tax
Health insurance premium
Charitable donation
Retirement plan contribution
When an employee receives benefits such as paid sick leave and health insurance, these are considered:
Taxable income
Unearned income
Employee perks
Job benefits
