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WorksheetsBPA Income and Tax Quiz
Total questions: 29
Worksheet time: 25mins
Identify the letter of the choice that best completes the statement or answers the question. Which of these is not a source of earned income?
Gross pay
Net pay
Savings account interest
Overtime Pay
Identify the letter of the choice that best completes the statement or answers the question. Which of these are a required deduction from gross pay?
401K contribution
Health insurance
Life Insurance
FICA
Identify the letter of the choice that best completes the statement or answers the question. On which of these items could an excise tax be charged?
Eggs
Gasoline
Income
Property
Identify the letter of the choice that best completes the statement or answers the question. The current Social Security tax rate for each employee is _____.
1.45%
2.9%
6.2%
12.4%
Identify the letter of the choice that best completes the statement or answers the question. A form used to report taxable income is a ______.
W-2
W-4
1099
1040
Identify the letter of the choice that best completes the statement or answers the question. Which type of inflation happens when producers raise prices because their expenses to create products are increasing?
Demand-pull
Cost-push
Hyperinflation
Reflation
Identify the letter of the choice that best completes the statement or answers the question. Which federal agency oversees the stock exchanges?
CPSC
FTC
SEC
BBB
How is a person’s net worth determined?
Checking Account + Savings Account + Investments
Assets – Liabilities
Gross Pay – Taxes
Net Pay – Taxes
How much does the FDIC insure checking accounts for?
100,000 per depositor per account category
250,000 per depositor per account category
100,000 per family per bank
250,000 per family per bank
What is typically the largest fee assessed by a bank?
Out of network ATM fee
Monthly statement fee
In network ATM fee
Overdraft fee
What type of endorsement includes the words “For Deposit Only”?
Restrictive
Special
Blank
Proprietary
Which of the following statements is true?
Banks must allow you to opt-out of overdraft protection.
Banks can legally opt you in for overdraft protection without your permission.
With overdraft protection you will never be charged a fee for nonsufficient funds.
With overdraft protection, you will not be able to make a purchase with nonsufficient funds in your account.
Purchasing insurance is an example of ______.
risk deduction
The type of life insurance that builds cash value is ______.
Renter’s insurance protects all of these except _______.
Personal property
Liability risks
Building structure
All of the other answers are correct
Which automobile insurance is required in most states?
Collision
Full Coverage
Liability
No-Fault
Which of these types of credit allows you to charge to an account repeatedly?
Installment credit
Secured loan
Revolving credit
Signature loan
Which is not an advantage of using credit?
Rewards program
Finance charges
Leverage
Convenience
Which credit legislation caps penalty fees charged to credit customers?
Truth in Lending Act
Fair Credit Reporting Act
Fair Credit Billing Act
Credit Card Act of 2009
When performing a bank statement reconciliation, how would the service charge be handled?
Deducted from the checkbook balance
Added to the checkbook balance
Deducted from the bank statement balance
Added to the bank statement balance
Where is the best place to store money for an emergency fund?
Certificate of Deposit
Checking account
Savings bonds
Savings account
Which one of these is not considered a retirement account?
401(k)
Roth IRA
Mortgage
Traditional IRA
Which of these measures the performance of an investment?
Rule of 72
50/30/20 Rule
Debt to Equity Ratio
ROI
The trading of one currency for another is known as _______.
A stock transaction
foreign exchange
demand deposit
Which of the following is the riskiest investment?
Buying a blue-chip stock
Depositing money in a 3-year CD
Investing in a futures contract
Buying one of Apple’s corporate bonds
You have a credit card balance of $1,000 you carried over from last month. Your APR on the card is 18% and your minimum payment is 3% of the balance. What is the monthly interest you will be charged and what is your minimum payment?
You bought an investment for $500 on February 1, 2022 and sold it for $525 on January 31, 2023. What is your capital gain and what is your return on investment?
Calculate regular pay and overtime pay if you earn $9.50/hour for 40 hours and earn time and a half for overtime pay of 5 hours.
You earn an annual salary of $32,540 and are paid once a month. Calculate how much annual tax is withheld from your salary based on the income tax table. Calculate how much is deducted per pay period.
