WorksheetsChapter 7 Balancing Bucks
Total questions: 20
Worksheet time: 40mins
Net pay is a person's take-home pay.
True
False
Medicare tax is the amount of tax on earnings at the state level based on percent of income.
True
False
A deficit is excess cash to pay down debt, invest, pay for education, take a trip, boost retirement, or handle financial emergencies.
True
False
Pay stubs may look different depending on the employer.
True
False
A variable expense is money spent on something that remains about the same amount each month.
True
False
The amount of money a person earns before payroll deductions is called
Net pay
Gross pay
Fixed expense
Income
What are some items a person should look for when reviewing their pay stub?
Verify the calculation of their gross pay
Make sure their employer and employee information is correct
Check that their marital status and withholding allowance information is correct
All of the these
What are some examples of payroll deductions?
Medicare tax
State income tax
Federal income tax
All of the these
Money coming in and money going out is known as a.
Expense
Cash flow
Gross pay
Income
What is NOT an example of a fixed expense?
Cell phone payment
Car insurance
Clothes
Rent
What is Social Security tax?
The tax on earnings due from both employers and employees to fund the Social Security system
A tax on luxury goods purchased by individuals
A tax levied on property owned by individuals
A tax on imported goods and services
What is a variable expense?
Expenses that fluctuate from month to month and have the most flexibility for cutting back and getting ahead on your finances
Expenses that are fixed and do not change over time
Expenses that are optional and can be avoided
Expenses that are one-time and do not recur
What is cash flow?
Money coming in and money going out
A type of investment
A financial statement
A budgeting technique
What is a Form W-4?
form specifying the number of allowances in your Employee's Withholding Allowance Certificate
form used to report annual income to the IRS
form for applying for a new Social Security Number
form for declaring bankruptcy
What are withholding allowances?
Factors, such as marital status, number of dependents, and number of jobs held, that determine how much tax will be withheld from each paycheck
A fixed amount of money deducted from your paycheck for savings
The total income earned before any deductions
A type of insurance coverage provided by employers
The difference between income and expenses is:
Income is what you earn, expenses are what you spend.
Income is what you spend, expenses are what you earn.
Income and expenses are the same.
Income is always greater than expenses.
The key to healthy cash flow management is:
Budgeting effectively
Ignoring expenses
Spending more than you earn
Not tracking income
The difference between a surplus and a deficit is:
A surplus occurs when income exceeds expenditures, while a deficit occurs when expenditures exceed income.
A surplus and a deficit both occur when income equals expenditures.
A surplus occurs when expenditures exceed income, while a deficit occurs when income exceeds expenditures.
A surplus and a deficit are the same, with no difference.
List the four pieces of information that should be recorded when making an automatic payment online.
Account number, payment amount, payment date, and payee name
Account number, payment amount, payment date, and transaction ID
Account number, payment amount, payee name, and transaction ID
Payment amount, payment date, payee name, and transaction ID
Why is it important for a person to examine their pay stub information?
To ensure accuracy of pay and deductions
To ignore any discrepancies
To avoid understanding financial status
To disregard tax information
