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PBMF: Ch 18 Quiz

Total questions: 24

Worksheet time: 16mins

Name
Class
Date
1.

The difference between a trade-off and an opportunity cost is:

a)

A trade-off involves a choice between two or more options, while opportunity cost is the value of the next best alternative foregone.

b)

A trade-off is the cost of an opportunity, while opportunity cost is the benefit of a trade-off.

c)

A trade-off is always monetary, while opportunity cost is always non-monetary.

d)

There is no difference; they are the same concept.

2.

If you work 20 hours at $15 per hour, what's your gross pay?

a)

$200

b)

$250

c)

$300

d)

$350

3.

What percentage do self-employed individuals pay in total FICA taxes?

a)

12.4%

b)

15.3%

c)

7.65%

d)

10.2%

4.

Match each word or phrase with the correct description.

a)

These remain the same each period

1.

Fixed Expenses

b)

These vary from month to month

2.

Variable Expenses

c)

income received from employment

3.

Earned Income

5.

Organize these options into the right categories

Categorize the following

rent

insurance
loan payments
groceries
entertainment
dining out
clothing

car payment

Fixed Expenses
Variable Expenses
6.

Income tax is a tax levied on:

a)

Goods and services

b)

Property

c)

Income of individuals and businesses

d)

Imports and exports

7.

The organization that manages federal income taxes is:

a)

Federal Reserve

b)

Internal Revenue Service

c)

Department of Treasury

d)

Social Security Administration

8.

A tax return is:

a)

a document containing the information used to calculate taxes owed

b)

a mandatory payment to the government.

c)

a type of investment account.

d)

a financial statement issued by banks.

9.

What is gross income?

a)

The total revenue before expenses are deducted

b)

The net profit after all expenses

c)

The amount of tax paid

d)

The total expenses incurred

10.

What is taxable income?

a)

Income that is subject to tax by the government.

b)

Income that is exempt from all taxes.

c)

Income that is only taxed at the state level.

d)

Income that is only taxed at the federal level.

11.

A refund in terms of taxes is:

a)

A payment made to the government

b)

A payment received from the government

c)

A penalty for late tax filing

d)

An additional tax charge

12.

An audit in the context of taxes is:

a)

a review of financial statements to ensure accuracy and compliance with tax laws.

b)

a process of creating financial statements for a company.

c)

a method of calculating tax refunds for individuals.

d)

a way to evade taxes legally.

13.

Which of the following is considered earned income?

a)

Wages and salary

b)

Interest from savings

c)

Investment earnings

d)

Social Security benefits

14.

The purpose of Form W-2 is to:

a)

report an employee's annual wages and the amount of taxes withheld from their paycheck.

b)

apply for a new job.

c)

file a complaint against an employer.

d)

register for health insurance.

15.

Which of the following is a type of itemized deduction?

a)

Standard deduction

b)

Home loan interest

c)

Filing status

d)

Personal exemption

16.

What is the deadline for filing taxes each year?

a)

April 15th

b)

January 1st

c)

December 31st

d)

July 4th

17.

Which program offers free help for low-income people?

a)

TCE Program

b)

VITA Program

c)

IRS e-filing service

d)

Community centers

18.

One benefit of electronic filing (E-filing) is:

a)

Faster processing of returns

b)

Increased paperwork

c)

Higher costs

d)

Slower refund times

19.

What are some options for professional tax help?

a)

Hiring a tax attorney

b)

Using tax software

c)

Consulting a tax advisor

d)

All of the these

20.

Which of the following is a professional tax help option?

a)

Tax attorneys

b)

Math errors

c)

Missing the deadline

d)

Keep good records all year

21.

Which of the following is a common tax mistake to avoid?

a)

Using reliable tax software

b)

Certified Public Accountants

c)

Incorrect Social Security numbers

d)

Tax preparation guides

22.

What should you do if you need help with tax filing?

a)

Consult a tax professional

b)

Ignore the tax filing

c)

Do it yourself without any help

d)

Wait until the deadline passes

23.

Which of the following is a tip for tax filing?

a)

Forgetting to report all income

b)

Unsigned returns

c)

Save copies of returns

d)

Inaccurate bank information

24.

The IRS assistance hotline is used for:

a)

Filing tax returns

b)

Providing tax-related assistance

c)

Auditing taxpayers

d)

Collecting taxes