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WorksheetsTaxes, Government , Payckecks & Credit
Total questions: 40
Worksheet time: 20mins
Which of the following accurately describes taxes?
Variable fines charged by the government for wrongdoing
Payment for goods and services received rom foreign countries
Restrictions limiting the use of public services
Percentage-based fees assessed by the government
_____ taxes are levied on income, while _____ taxes are levied on goods and services.
Regulated; Unregulated
Unregulated; Regulated
Direct; Indirect
Indirect, Direct
Sales Tax Rates vary from state to state.
True
False
Which of the following is an example of an excise tax?
A tax on groceries
A tax on tobacco
A tax on clothing
None of the above
Which of the following is considered a tax credit?
A reduction in taxes due to children
A deduction for itemized medical expenses
A decline in taxable income due to charitable contributions
A refund check issued by the govt. because of a tax cut
Which type of taxes impact the economy by reducing economic inequality?
Sales Tax
Wealth Tax
Property Taxes
Earnings Taxes
Social Security Taxes are withheld from an individuals paycheck.
True
False
Standard tax deductions for an individual are _____.
$10,000
$4,300
Based on a personal income
Different every year
Which of the following comprises an individual's gross income?
Interest, dividend and earned income
Interest and earned income
Dividend, interest and salary
Salary, tips and wages
Tax Day is always April 15th.
True
False
Which of the following is the federal bureau which colects taxes and turns the money over to the Treasury Department?
Congress
Department of Tax Collection
Internal Revenue Service
Executive Department
The IRS is NOT responsible for which of the following?
Issuing tax refunds
Collecting taxes
Processing tax returns
Promoting ecnomic prosperity
Which of the following is the most common tax on the federal level?
Sales tax
Income tax
Property tax
Excise tax
Which of the following entities writes states' tax laws?
The President
Congress
Each State
The IRS
Which of the following entities does NOT have the ability to collect taxes on the local level?
County governments
City governments
School districts
Politicians
Which of the following number of dependents claimed on a W-4 will have the most income tax witholding taken out of your paycheck?
0
1
2
3
John's employer withholds his taxes with every paycheck. However, John is also self-employed and is responsible for paying his taxes on his second income. To make it easier, what might John ask his employer to do for him?
Take additional taxes out by requesting it on a W-9
Take additional taxes out by requesting it on a W-4
Neither, John must pay his own taxes for the income
Take additional taxes out on a W-4 and W-9
Andrea earns $8 per hour and works 20 hours per week. She receives her paycheck for her hours worked during the week every Friday afternoon. What is her gross pay?
$80
$131.76
$144
$160
Andrea earns $8 per hour and works 20 hours per week. She recei es each week's paycheck every Friday afternoon. The percentage of Andrea's gross pay which goes to federal income tax withholding is 15%. How much is her check when you subtract her federal income tax withholding from her gross pay?
$80
$131.76
$136
$160
Andrea earns $8 per hour and works 20 hours per week. She receives each week's paycheck every Friday afternoon. The percentage of Andrea's gross pay which goes toward Social Security and Medicare is 7.65% of her gross pay. How much is taken out for these taxes from her gross pay?
$12.24
$131.76
$13.76
$80
Which of the following defines credit?
Yearly membership or participation fees
Fees for getting cash advances
The ability to acquire money, goods or services from others without immediate payment
Loans which will be in repayment for less than an 18 month time period
What type of loan would one need to buy a house?
Short-term
Intermediate
Long-term
None of the above
Which of the following is NOT a source of credit?
Checking accounts
MOrtgage companies
Credit Unions
Credit card companies
Which of the following defines APR?
Yearly membership or participation fees
A measure of the cost of credit, expressed as a yearly rate
Loans which will be in repayment for less than an 18 month time period
Fees for getting cash advances
FICO stands for Fair Isaac Corporation.
True
False
You are entitled to a free copy of your credit report twice a year.
True
False
What is the highest credit score number?
750
800
850
900
Errors on a credit report are easy to fix.
True
False
Which type of loan will be in repayment for more than 10 years?
Timely loans
Intermdiate-term loans
Long-term loans
Large lump loans
Your credit rating is a number calculated by using information on a credit report which shows lenders the risk they take by loaning money to you.
True
False
Short term goals cover a time period of one to two years.
True
False
Budgeting finances, requires calculating _____ and _____.
Income; Expenses
Investments; Savings
Utility; Opportunity Cost
Inflation; Taxes
_____ explains how a person changes financial position, earnings, consumption and savings throught the life cycle.
Financial Evolution
Money Life Cycle
Portfolio Growth
Family Life Cycle
Budgets assist in reorganizing finances to reduce ______ or increase ______.
Problems; Happiness
Funds; Expeses
Debt; Savings
Consistency; Originality
If income exceeds expenses, which of the following is recommended?
Increase income sources
Go on a vacation
Decrease income sources
Research investment and savings options
Anyone can open a 401k savings plan.
True
False
Which of the following is NOT true of a Roth IRA?
Can be withdrawn at any time
Applies a 10 percent tax penalty on any withdrawals made before the age of 59.5
Does not require taxes paid on the interest
Does not reduce tax liability
Common stock differs from preferred stock in which of the following ways?
Voting Rights
Exchange Rates
Callable Features
Liquidity
A _____ account has a higher rate of return, but a _____ account has a lower required minimum balance.
Savings; Money Market
Money Market; Savings
Which of the following accurately describes stocks?
Employee-sponsored retirement benefit plans
Savings accounts which include tax benefits
Investments providing ownershipof public companies
Contributions for the government required by people
