WorksheetsPFL Semester Test
Total questions: 46
Worksheet time: 23mins
What is the first step in creating a budget?
Spending all income
Identifying fixed and variable expenses
Tracking income and expenses
Applying for a loan
A fixed expense is:
A cost that changes every month
A cost that remains the same every month
An unnecessary expense
A one-time cost
Which of the following is an example of a variable expense?
Mortgage payment
Grocery bill
Car insurance
Property taxes
Why is it important to save for emergencies in a budget?
To avoid paying bills
To cover unexpected expenses
To increase fixed expenses
To qualify for loans
What is the recommended percentage of income to save each month?
5%
10%
25%
50%
What is the purpose of income taxes?
To fund government programs and services
To increase personal savings
To reduce inflation
To decrease wages
Which form is used to report annual earnings and taxes withheld?
W-4
W-2
1040
1099
What is the sales tax?
A tax on property ownership
A tax on goods and services purchased
A tax on income
A tax on investments
Which of the following is deducted from a paycheck for federal programs like Social Security?
Property tax
FICA tax
Sales tax
Capital gains tax
What is the deadline to file federal income taxes in the United States?
January 15
March 1
April 15
June 30
A tax deduction is:
Money added to taxable income
Money subtracted from taxable income
A penalty for not filing taxes
A fee for filing taxes early
Which of the following is an example of taxable income?
Gifts
Wages and salaries
Child support payments
Scholarships
A tax credit is:
A penalty for underpayment of taxes
A direct reduction of the amount of tax owed
An increase in taxable income
A type of tax deduction
What is the primary purpose of withholding taxes from a paycheck?
To reduce employer costs
To prepay income taxes throughout the year
To avoid penalties from the IRS
To pay only state taxes
Which tax form should you use to adjust your tax withholding?
1040
W-4
W-2
1099
What is the key to effective communication?
Avoiding all conflicts
Listening actively and responding clearly
Speaking loudly
Ignoring feedback
An example of professional communication is:
Gossiping about coworkers
Using respectful and concise language
Avoiding emails
Ignoring questions
Nonverbal communication includes:
Body language and facial expressions
Writing formal letters
Texting coworkers
Conducting surveys
Which of the following demonstrates professionalism in communication?
Missing deadlines
Interrupting others frequently
Sending clear and polite emails
Avoiding workplace discussions
Why is active listening important?
To avoid misunderstandings
To control the conversation
To shorten meetings
To focus only on your own ideas
What is the main purpose of a checking account?
To earn interest
To manage daily financial transactions
To invest money
To secure loans
A savings account is best used for:
Short-term expenses
Building emergency funds and earning interest
Paying bills
Investing in stocks
What is a benefit of online banking?
No fees for overdrafts
Access to account information 24/7
Higher interest rates
No need to pay taxes
Overdraft protection helps:
Increase savings
Prevent transactions from being declined due to insufficient funds
Eliminate bank fees
Secure loans
What is the purpose of the Federal Deposit Insurance Corporation (FDIC)?
To approve loans
To insure bank deposits up to a certain limit
To monitor stock market trends
To provide retirement accounts
Bank reconciliation involves comparing:
Your monthly expenses to your savings
Your bank statement to your personal financial records
Your income to your tax returns
Your credit score to your loan balances
Why is reconciling a bank statement important?
To avoid paying taxes
To identify errors or unauthorized transactions
To increase account balances
To apply for a credit card
A cleared check is:
A check that has been written but not processed
A check that has been processed by the bank
A check that was canceled
A voided check
When reconciling a bank statement, what should you do if you find a transaction you don’t recognize?
Ignore it
Report it to your bank immediately
Assume it will be corrected next month
Subtract it from your savings
What is an outstanding check?
A check that has bounced
A check written but not yet cleared by the bank
A check already processed
A canceled check
Professionalism in financial planning includes:
Ignoring deadlines
Communicating clearly and meeting deadlines
Overlooking client concerns
Avoiding formal reports
Which of the following is NOT a characteristic of professionalism?
Accountability
Integrity
Dishonesty
Respect
How should you handle a client’s financial questions?
Ignore them until later
Provide clear and accurate information
Refer them to someone else immediately
Give vague responses
Which behavior demonstrates ethical professionalism?
Misrepresenting financial data
Maintaining confidentiality of client information
Falsifying reports
Missing deadlines
The best way to build trust with clients is to:
Provide clear, honest communication and follow through on commitments
Avoid sharing too much information
Only focus on financial goals
Use technical jargon
What should you do if you make a financial error at work?
Ignore it and hope it goes unnoticed
Admit the mistake, correct it, and learn from it
Blame someone else
Avoid mentioning it to your supervisor
Why is it important to dress professionally in the workplace?
To fit in with coworkers
To make a good impression and show respect
To avoid being questioned about your work
To follow outdated traditions
A professional email should:
Be casual and informal
Include clear subject lines and proper grammar
Use emojis to convey emotions
Avoid addressing the recipient
Which of the following demonstrates respect in the workplace?
Interrupting others during meetings
Listening actively to others' ideas
Ignoring constructive feedback
Taking credit for someone else’s work
In a professional setting, integrity means:
Following the rules only when convenient
Acting honestly and ethically in all situations
Avoiding responsibility for decisions
Keeping personal opinions hidden
Which of the following is the best example of a short-term financial goal?
Saving for a down payment on a house
Paying off a credit card balance this month
Retiring at age 65
Starting a college savings plan
A financial plan helps individuals by:
Reducing their income
Setting and achieving financial goals
Guaranteeing investment success
Eliminating all debts
What is the '50/30/20' budgeting rule?
Spend 50% on wants, 30% on needs, and 20% on savings
Spend 50% on needs, 30% on wants, and 20% on savings
Save 50% of your income and invest 30%
Use 50% of your income for debt payments
What is the purpose of setting financial priorities?
To reduce income taxes
To ensure spending aligns with personal goals
To minimize all discretionary spending
To avoid creating a budget
When should you start planning for retirement?
After paying off all debts
As soon as you start earning income
At age 50 or older
Only when you receive a pension
What is a certificate of deposit (CD)?
A type of savings account with fixed terms and higher interest rates
A fee charged by banks for maintaining an account
A loan provided by financial institutions
An overdraft protection plan
