Question 1

Taxable income is used to compute a person's

Accepted Answer

A) exemptions. 
B) income tax. 
C) deductions. 
D) tax credit. 
E) exclusions. 
A) exemptions. 
B) income tax. 
C) deductions. 
D) tax credit. 
E) exclusions.

Question 2

Tax records should be kept for a minimum of __________ rears from the date you receive your notice of assessment

Accepted Answer

A) you are not required to keep your tax records. 
B) until age 65 
C) three years for all records 
D) six years for all records 
E) three years, six years, or indefinitely, depending on the type of record 
A) you are not required to keep your tax records. 
B) until age 65 
C) three years for all records 
D) six years for all records 
E) three years, six years, or indefinitely, depending on the type of record

Question 3

A province may impose a personal property tax.

Accepted Answer

A) True 
 B)False

Question 4

An RRSP, RPP, and IPP are examples of

Accepted Answer

A) tax-exempt retirement plans. 
B) tax-deferred retirement plans. 
C) capital gains. 
D) self-employment insurance programs. 
E) job-related expenses that are tax deductible. 
A) tax-exempt retirement plans. 
B) tax-deferred retirement plans. 
C) capital gains. 
D) self-employment insurance programs. 
E) job-related expenses that are tax deductible.

Question 5

A person with a total tax liability of $4,350 and withholding of federal taxes of $3,975 would:

Accepted Answer

A) receive a refund of $4,550. 
B) owe $8,325. 
C) owe $375. 
D) receive a refund of $8,325. 
E) receive a refund of $375. 
A) receive a refund of $4,550. 
B) owe $8,325. 
C) owe $375. 
D) receive a refund of $8,325. 
E) receive a refund of $375.

Question 6

What is the marginal federal tax rate as of 2016 for an income of $40,000

Accepted Answer

A) 15% 
B) 20.5% 
C) 26% 
D) 29% 
E) 33% 
A) 15% 
B) 20.5% 
C) 26% 
D) 29% 
E) 33%

Question 7

The basic personal amount is

Accepted Answer

A) the standard deduction. 
B) a tax credit. 
C) an itemized deduction. 
D) an exclusion. 
E) an exemption. 
A) the standard deduction. 
B) a tax credit. 
C) an itemized deduction. 
D) an exclusion. 
E) an exemption.

Question 8

Which of the following is a standard tax credit?

Accepted Answer

A) itemized deductions 
B) withholding 
C) an earned tax credit 
D) the basic personal amount 
E) capital gains 
A) itemized deductions 
B) withholding 
C) an earned tax credit 
D) the basic personal amount 
E) capital gains

Question 9

If you are a self-employed individual, you do have to make both employee and employer contributions to the CPP or QPP.

Accepted Answer

A) True 
 B)False

Question 10

About one-third of each dollar you earn goes towards income taxes

Accepted Answer

A) True 
 B)False

Question 11

Which of the following people is least likely to have to file a federal income tax return?

Accepted Answer

A) a person earning $8,750 
B) a person earning $10, 750 
C) a person earning less than $9,600 
D) a person over age 65 
E) a college student 
A) a person earning $8,750 
B) a person earning $10, 750 
C) a person earning less than $9,600 
D) a person over age 65 
E) a college student

Question 12

There is a withholding on tax paid to Canadian residents on interest, dividends, rent and royalties.

Accepted Answer

A) True 
 B)False

Question 13

Identify the correct statements I.Tax deductions are more valuable to a high income earner than tax credits.
II)RESPs are excellent income splitting vehicles for families with young children.
III)Students can deduct moving expenses when they move back home to take up a summer job.

Accepted Answer

A) I and II, only 
B) II and III, only 
C) I and III, only 
D) I, II and III 
E) I only 
A) I and II, only 
B) II and III, only 
C) I and III, only 
D) I, II and III 
E) I only

Question 14

The Tax Free Savings Account (TFSA) contribution limit

Accepted Answer

A) is fixed at $5,000/year 
B) will increase at a rate of 10% per year 
C) is indexed to the CPI and increases in multiples of $500 
D) varies by an individual's income 
E) decreases with increased RRSP contributions in the same year 
A) is fixed at $5,000/year 
B) will increase at a rate of 10% per year 
C) is indexed to the CPI and increases in multiples of $500 
D) varies by an individual's income 
E) decreases with increased RRSP contributions in the same year

Question 15

Tax evasion refers to illegal actions to reduce one's taxes.

Accepted Answer

A) True 
 B)False

Question 16

What is the marginal federal tax rate as of 2016 for an income of $160,000

Accepted Answer

A) 15% 
B) 20.5% 
C) 26% 
D) 29% 
E) 33% 
A) 15% 
B) 20.5% 
C) 26% 
D) 29% 
E) 33%

Question 17

Non-residents must file Canadian tax returns if they are present in Canada for hoe many days in one calendar year?

Accepted Answer

A) 90 
B) 60 
C) 183 
D) 240 
E) 365 
A) 90 
B) 60 
C) 183 
D) 240 
E) 365

Question 18

Tax assistance from an attorney is less common than using a tax service.

Accepted Answer

A) True 
 B)False

Question 19

What is the marginal federal tax rate as of 2016 for an income of $140,000

Accepted Answer

A) 15% 
B) 20.5% 
C) 26% 
D) 29% 
E) 33% 
A) 15% 
B) 20.5% 
C) 26% 
D) 29% 
E) 33%

Question 20

Phillip Marnier had earnings from his salary of $40,000, interest on savings of $700, and a contribution to a registered retirement saving plan of $1,500.Phillip's net income would be

Accepted Answer

A) $39,200. 
B) $40,000. 
C) $39,300. 
D) $38,500. 
E) $41,500. 
A) $39,200. 
B) $40,000. 
C) $39,300. 
D) $38,500. 
E) $41,500.

Taxable income is used to compute a person's

Tax records should be kept for a minimum of __________ rears from the date you receive your notice of assessment

A province may impose a personal property tax.

An RRSP, RPP, and IPP are examples of

A person with a total tax liability of $4,350 and withholding of federal taxes of $3,975 would:

What is the marginal federal tax rate as of 2016 for an income of $40,000

The basic personal amount is

Which of the following is a standard tax credit?

If you are a self-employed individual, you do have to make both employee and employer contributions to the CPP or QPP.

About one-third of each dollar you earn goes towards income taxes

Which of the following people is least likely to have to file a federal income tax return?

There is a withholding on tax paid to Canadian residents on interest, dividends, rent and royalties.

Identify the correct statements I.Tax deductions are more valuable to a high income earner than tax credits. II)RESPs are excellent income splitting vehicles for families with young children. III)Students can deduct moving expenses when they move back home to take up a summer job.

The Tax Free Savings Account (TFSA) contribution limit

Tax evasion refers to illegal actions to reduce one's taxes.

What is the marginal federal tax rate as of 2016 for an income of $160,000

Non-residents must file Canadian tax returns if they are present in Canada for hoe many days in one calendar year?

Tax assistance from an attorney is less common than using a tax service.

What is the marginal federal tax rate as of 2016 for an income of $140,000

Phillip Marnier had earnings from his salary of $40,000, interest on savings of $700, and a contribution to a registered retirement saving plan of $1,500.Phillip's net income would be

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters

Exam 3: Planning Your Tax Strategy

Taxable income is used to compute a person's

Tax records should be kept for a minimum of __________ rears from the date you receive your notice of assessment

A province may impose a personal property tax.

An RRSP, RPP, and IPP are examples of

A person with a total tax liability of $4,350 and withholding of federal taxes of $3,975 would:

What is the marginal federal tax rate as of 2016 for an income of $40,000

The basic personal amount is

Which of the following is a standard tax credit?

If you are a self-employed individual, you do have to make both employee and employer contributions to the CPP or QPP.

About one-third of each dollar you earn goes towards income taxes

Which of the following people is least likely to have to file a federal income tax return?

There is a withholding on tax paid to Canadian residents on interest, dividends, rent and royalties.

Identify the correct statements I.Tax deductions are more valuable to a high income earner than tax credits. II)RESPs are excellent income splitting vehicles for families with young children. III)Students can deduct moving expenses when they move back home to take up a summer job.

The Tax Free Savings Account (TFSA) contribution limit

Tax evasion refers to illegal actions to reduce one's taxes.

What is the marginal federal tax rate as of 2016 for an income of $160,000

Non-residents must file Canadian tax returns if they are present in Canada for hoe many days in one calendar year?

Tax assistance from an attorney is less common than using a tax service.

What is the marginal federal tax rate as of 2016 for an income of $140,000

Phillip Marnier had earnings from his salary of $40,000, interest on savings of $700, and a contribution to a registered retirement saving plan of $1,500.Phillip's net income would be

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters