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WorksheetsChapter 16 Review
Total questions: 16
Worksheet time: 8mins
A W-2 is a summary of a worker’s earnings for the previous year and includes the amount deducted for taxes.
True
False
A balance sheet reports assets, liabilities, and net worth on a given date.
True
A cash flow statement examines changes in the value of your personal assets.
True
False
The process of good money management should start with knowing your current financial status.
True
False
Financial planning generally reduces an individual’s financial uncertainties.
True
False
An amount of money an insurance company pays to a person who has previously deposited money with the company is called a pension.
True
False
All the following are examples of tax deductions EXCEPT
interest paid on a home mortgage or home equity loan.
certain medical expenses.
rent expense.
contributions to charitable organizations.
Which of the following would be a personal asset?
your college loan
your home mortgage
your personal computer
your car payment
Take-home pay is
the amount you will receive when you cash your paycheck.
cash inflows minus cash outflows.
the money you have available to spend as a result of working plus any other income, such as a gift or stock dividend
the amount of a paycheck before taxes and other payroll deductions
Which of the following would probably be a short-term financial goal?
buying a new luxury automobile
purchasing a new CD
going to college
going on a three-week cruise
Wages, salary, commission, fees, tips, and bonuses are
interest income.
tax-exempt income
tax-deferred income.
earned income
One of the first things you should do as part of the financial planning process is to
create a balance sheet and cash flow statement.
purchase life insurance.
develop financial goals.
begin searching for a better-paying job
A tax on gasoline is known as a(n)
estate tax
gift tax
excise tax
income tax.
Your birth certificate and Social Security card would likely be contained in which category of your financial records filing system?
tax records
housing records
money management records
personal records
This part of Social Security provides death benefits to dependents of workers who die.
disability insurance
retirement insurance
unemployment insurance
survivors insurance
Costs that occur on a regular basis are called (a) expenses.
