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Question 1. 1. (TCO 2) This type of tax is assessed on specific goods and services at the time of purchase. Estate Inheritance Excise General sales Value added
Question 2. 2. (TCO 2) Interest earnings of $2,400 from a taxable investment for a person in a 28% tax bracket would result in after-tax earnings of $672. $1,728. $2,400. $3,333. $8,571.
Question 3. 3. (TCO 2) _____ can reduce taxable income. Portfolio income Tax credits Exclusions Passive income Earned income
Question 4. 4. (TCO 2) Mary has earned money from a limited partnership, so she would need to report this as _____ income. passive capital gain portfolio earned excluded
Question 5. 5. (TCO 2) George Washburn had earnings from his salary of $44,000, interest on savings of $800, a contribution to a traditional individual retirement account of $2,000, and dividends from mutual funds of $600. George's adjusted income (AGI) would be $43,400. $44,000. $45,400. $42,000. $42,800.
Question 6. 6. (TCO 2) _____ can be calculated as a result of various items being subtracted from gross income, such as individual retirement account contributions and alimony payments. Adjusted gross income Taxable income Earned income Passive income Total exclusions
Question 7. 7. (TCO 2) Expenses that a taxpayer is allowed to deduct from adjusted gross income are called _____. exemptions exclusions itemized deductions tax credits passive income
Question 8. 8. (TCO 2) Taxes owed can be reduced through _____. the standard deduction a tax credit an itemized deduction an exclusion an exemption
Question 9. 9. (TCO 2) In order for a dependent to qualify as an exemption, he or she must be married. receive more than one half of his or her support from the taxpayer. be under age 16. be registered in school.
be a relative.
Question 10. 10. (TCO 2) Generally, the way most people pay federal income tax is by paying the total amount owed by April 15. filing quarterly tax payments. having amounts withheld from income. earning tax credits for various deductions.
Question 11. 11. (TCO 2) A(n) _____ is an all-purpose account that provides several services. NOW account asset management account EFT account mutual fund money market account
Question 12. 12. (TCO 2) An example of a _____ deposit is a checking account. common time current loan demand
Question 13. 13. (TCO 2) Compared to other financial institutions, credit unions provide an advantage in the area of interest-bearing checking accounts. low-cost personal loans. flexible-rate loans. credit cards. variable-rate savings plans.
Question 14. 14. (TCO 2) _____ refers to the business hours and location of a financial institution and can be an important factor when it comes to consumer selection. Safety Cost Compounding Liquidity Convenience
Question 15. 15. (TCO 2) A saver seeking a high rate of return would usually earn the highest rate by investing in a(n) certificate of deposit. debit account. passbook account. share account. NOW account.
Question 16. 16. (TCO 2) U.S. savings bonds provide the following advantage. Interest earned is exempt from federal income taxes. Interest earned is deferred for federal tax purposes. A constant rate of earnings They can be converted to other types of investments.
Question 17. 17. (TCO 2) In order to best compare the earnings for different savings plans, one can refer to each plan's discounted present value. compounded rate of return. net present value. annual percentage yield. after-tax rate of return.
Question 18. 18. (TCO 2) At times, funds deposited in an account may be restricted by_____. a holding period outstanding checks interest earned service charges electronic banking
Question 19. 19. (TCO 2) Service fees would be _____ in the bank reconciliation process. added to the bank statement balance subtracted from the bank statement balance added to the checkbook balance subtracted from the checkbook balance
Question 20. 20. (TCO 2) When an individual borrows money to purchase a new home, he or she will be charged a _____. prime rate
discount rate mortgage rate Treasury bond rate corporate bond