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WorksheetsIncome Unit Test
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
What is the primary purpose of a W-4 form?
a)
To report annual income to the IRS
b)
To calculate your tax refund
c)
To tell your employer how much tax to withhold from your pay
d)
To apply for government benefits
2.
Which of the following best describes gross pay?
a)
The amount of money you take home after taxes
b)
Your earnings before any deductions or taxes are taken out
c)
The total amount of taxes withheld from your paycheck
d)
Your hourly wage multiplied by overtime hours
3.
What type of tax is considered progressive?
a)
Sales tax
b)
Property tax
c)
Federal income tax
d)
Payroll tax
4.
Which retirement account offers tax-free withdrawals in retirement if you meet certain conditions?
a)
Traditional IRA
b)
401(k)
c)
Roth IRA
d)
Pension plan
5.
What is the main advantage of a 529 plan?
a)
Guaranteed investment returns
b)
Tax-free growth for qualified education expenses
c)
Unlimited contribution amounts
d)
Immediate tax deductions
6.
What is FICA tax used for?
a)
State road maintenance
b)
Public education funding
c)
Social Security and Medicare
d)
Local government services
7.
Which of these is an example of a hard skill?
a)
Leadership ability
b)
Time management
c)
Data analysis
d)
Team collaboration
8.
What is a Health Savings Account (HSA)?
a)
A regular savings account for medical expenses
b)
A tax-advantaged account for healthcare costs
c)
A government healthcare programme
d)
An employer-provided health insurance plan
9.
What typically happens to college costs over time?
a)
They remain constant
b)
They decrease with inflation
c)
They increase with inflation
d)
They follow stock market trends
10.
What is the difference between saving and investing?
a)
Saving is long-term, investing is short-term
b)
Saving has higher returns than investing
c)
Investing typically involves more risk and potential for higher returns
d)
There is no difference between the two
11.
What is a stock split?
a)
When a company divides its profits among shareholders
b)
When a company divides each share into multiple shares
c)
When investors split ownership of a company
d)
When dividends are divided equally
12.
Which tax document shows your annual earnings and taxes withheld?
a)
W-4 Form
b)
W-2 Form
c)
I-9 Form
d)
1099 Form
13.
What is direct deposit?
a)
A type of investment strategy
b)
A tax withholding method
c)
Automatic payment of your salary into your bank account
d)
A retirement savings plan
14.
Which type of tax has the same rate regardless of income level?
a)
Progressive tax
b)
Regressive tax
c)
Proportional tax
d)
Variable tax
15.
What is compound interest?
a)
Interest earned only on the principal amount
b)
Interest earned on both principal and accumulated interest
c)
A fixed interest rate that never changes
d)
Interest paid to the government
16.
What is the purpose of an I-9 form?
a)
To verify employment eligibility
b)
To set up direct deposit
c)
To enrol in health insurance
d)
To calculate tax withholdings
17.
Which of these is considered a soft skill?
a)
Programming
b)
Communication
c)
Accounting
d)
Foreign language fluency
18.
What is the main benefit of employer matching in a 401(k)?
a)
Guaranteed investment returns
b)
Free additional money for retirement
c)
Lower tax rates
d)
Immediate access to funds
19.
What does market capitalisation represent?
a)
A company's annual profit
b)
The total value of a company's outstanding shares
c)
The number of employees in a company
d)
A company's debt level
20.
What is the primary purpose of payroll deductions?
a)
To increase employee savings
b)
To fund company profits
c)
To collect taxes and pay for benefits
d)
To reduce company expenses
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