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WorksheetsFSV VOCAB 02 - Pay and Tax
Total questions: 16
Worksheet time: 8mins
What is Earned Income?
A) A tax-advantaged retirement account employers offer to help their employees.
B) Money made from working for someone based on your time, effort, and skill.
C) A cash reserve specifically set aside for unplanned expenses or financial emergencies.
D) A prediction of how likely you are to pay a loan back on time based on your credit history.
What type of income is generated from investments such as stocks, bonds, mutual funds, and real estate?
A) Earned Income
B) Passive Income
C) Portfolio Income
D) Net Pay
Which term describes income that requires minimal effort to obtain, such as earnings from business activities in which the earner does not participate?
A) Gross Pay
B) Passive Income
C) Progressive Income
D) Emergency Savings
What is Gross Pay?
A) Pay you receive after taxes and other deductions are taken out.
B) Total pay before taxes and other deductions are taken out.
C) A flat tax on your paycheck including Social Security & Medicare.
D) A progressive tax on income charged by the federal government and most states.
What is Net Pay also known as?
A) Portfolio Income
B) Payroll Tax
C) Take Home Pay
D) Passive Income
What is Income Tax?
A) A flat tax on your paycheck including Social Security & Medicare.
B) A tax-advantaged retirement account employers offer to help their employees.
C) A cash reserve specifically set aside for unplanned expenses or financial emergencies.
D) A progressive tax on income charged by the federal government and most states.
What is Payroll Tax?
A) A progressive tax on income charged by the federal government and most states.
B) A flat tax on your paycheck including Social Security & Medicare.
C) A prediction of how likely you are to pay a loan back on time based on your credit history.
D) Money made from working for someone based on your time, effort, and skill.
What does a Credit Score predict?
A) The amount of money made from working for someone based on time, effort, and skill.
B) The level of effort required to obtain earnings from business activities.
C) How likely you are to pay a loan back on time based on your credit history and debt repayment history.
D) The total pay before taxes and other deductions are taken out.
What is a 401(k)?
A) A cash reserve specifically set aside for unplanned expenses or financial emergencies.
B) A flat tax on your paycheck including Social Security & Medicare.
C) A tax-advantaged retirement account employers offer to help their employees.
D) A progressive tax on income charged by the federal government and most states.
What is Emergency Savings?
A) A tax-advantaged retirement account employers offer to help their employees.
B) A flat tax on your paycheck including Social Security & Medicare.
C) A cash reserve specifically set aside for unplanned expenses or financial emergencies.
D) A prediction of how likely you are to pay a loan back on time based on your credit history.
What is considered a good credit score?
A) Below 600
B) 600-699
C) 700-749
D) 750 and above
This tax form is completed when you start a new job. It determines how much money gets taken out of each paycheck.
W-4
W-2
1099
1040
The amount of money you earn BEFORE payroll deductions is _____.
Take home pay
State Taxes
Net Pay
Gross Pay
Which of the following is an example of earned income?
Interest from a savings account
Wages from a job
Dividends from stocks
Capital gains from selling assets
How can investing in education impact your income?
It has no impact on income
It can potentially lead to higher-paying jobs and reduce the likelihood of being unemployed.
It decreases your income because you have to pay for education
It only helps if you study finance
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.
W-4
W-2
1099
1040
