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FSV VOCAB 02 - Pay and Tax

Total questions: 16

Worksheet time: 8mins

Name
Class
Date
1.

What is Earned Income?

a)

A) A tax-advantaged retirement account employers offer to help their employees.

b)

B) Money made from working for someone based on your time, effort, and skill.

c)

C) A cash reserve specifically set aside for unplanned expenses or financial emergencies.

d)

D) A prediction of how likely you are to pay a loan back on time based on your credit history.

2.

What type of income is generated from investments such as stocks, bonds, mutual funds, and real estate?

a)

A) Earned Income

b)

B) Passive Income

c)

C) Portfolio Income

d)

D) Net Pay

3.

Which term describes income that requires minimal effort to obtain, such as earnings from business activities in which the earner does not participate?

a)

A) Gross Pay

b)

B) Passive Income

c)

C) Progressive Income

d)

D) Emergency Savings

4.

What is Gross Pay?

a)

A) Pay you receive after taxes and other deductions are taken out.

b)

B) Total pay before taxes and other deductions are taken out.

c)

C) A flat tax on your paycheck including Social Security & Medicare.

d)

D) A progressive tax on income charged by the federal government and most states.

5.

What is Net Pay also known as?

a)

A) Portfolio Income

b)

B) Payroll Tax

c)

C) Take Home Pay

d)

D) Passive Income

6.

What is Income Tax?

a)

A) A flat tax on your paycheck including Social Security & Medicare.

b)

B) A tax-advantaged retirement account employers offer to help their employees.

c)

C) A cash reserve specifically set aside for unplanned expenses or financial emergencies.

d)

D) A progressive tax on income charged by the federal government and most states.

7.

What is Payroll Tax?

a)

A) A progressive tax on income charged by the federal government and most states.

b)

B) A flat tax on your paycheck including Social Security & Medicare.

c)

C) A prediction of how likely you are to pay a loan back on time based on your credit history.

d)

D) Money made from working for someone based on your time, effort, and skill.

8.

What does a Credit Score predict?

a)

A) The amount of money made from working for someone based on time, effort, and skill.

b)

B) The level of effort required to obtain earnings from business activities.

c)

C) How likely you are to pay a loan back on time based on your credit history and debt repayment history.

d)

D) The total pay before taxes and other deductions are taken out.

9.

What is a 401(k)?

a)

A) A cash reserve specifically set aside for unplanned expenses or financial emergencies.

b)

B) A flat tax on your paycheck including Social Security & Medicare.

c)

C) A tax-advantaged retirement account employers offer to help their employees.

d)

D) A progressive tax on income charged by the federal government and most states.

10.

What is Emergency Savings?

a)

A) A tax-advantaged retirement account employers offer to help their employees.

b)

B) A flat tax on your paycheck including Social Security & Medicare.

c)

C) A cash reserve specifically set aside for unplanned expenses or financial emergencies.

d)

D) A prediction of how likely you are to pay a loan back on time based on your credit history.

11.

What is considered a good credit score?

a)

A) Below 600

b)

B) 600-699

c)

C) 700-749

d)

D) 750 and above

12.

This tax form is completed when you start a new job. It determines how much money gets taken out of each paycheck.

a)

W-4

b)

W-2

c)

1099

d)

1040

13.

The amount of money you earn BEFORE payroll deductions is _____.

a)

Take home pay

b)

State Taxes

c)

Net Pay

d)

Gross Pay

14.

Which of the following is an example of earned income?

a)

Interest from a savings account

b)

Wages from a job

c)

Dividends from stocks

d)

Capital gains from selling assets

15.

How can investing in education impact your income?

a)

It has no impact on income

b)

It can potentially lead to higher-paying jobs and reduce the likelihood of being unemployed.

c)

It decreases your income because you have to pay for education

d)

It only helps if you study finance

16.

This is a form you fill out by April 15th to determine how much you either owe or will be refunded in taxes for the previous year.

a)

W-4

b)

W-2

c)

1099

d)

1040