Question 1

Union dues,fees for tax return preparation,and other miscellaneous expenses are:

Accepted Answer

A) not deductible. 
B) fully deductible. 
C) deductible for self-employed individuals only. 
D) deductible for people in certain income categories. 
E) deductible to the extent they exceed two percent of adjusted gross income. 
A) not deductible. 
B) fully deductible. 
C) deductible for self-employed individuals only. 
D) deductible for people in certain income categories. 
E) deductible to the extent they exceed two percent of adjusted gross income.

Question 2

Which one of the following would be deducted from gross income to obtain adjusted gross income?

Accepted Answer

A) Alimony payments 
B) Mortgage interest 
C) Medical expenses 
D) Moving expenses 
E) Charitable contributions 
A) Alimony payments 
B) Mortgage interest 
C) Medical expenses 
D) Moving expenses 
E) Charitable contributions

Question 3

Personal property taxes may tax the value of:

Accepted Answer

A) automobiles. 
B) boats. 
C) farm equipment. 
D) All of these 
E) None of these 
A) automobiles. 
B) boats. 
C) farm equipment. 
D) All of these 
E) None of these

Question 4

Drew Davis earns $4,500 per month from his job at Cisco Systems; $900 is withheld from this amount each month for taxes.What type of tax is this most likely to be?

Accepted Answer

A) General sales tax 
B) Excise tax 
C) Personal property tax 
D) Income tax 
E) Estate tax 
A) General sales tax 
B) Excise tax 
C) Personal property tax 
D) Income tax 
E) Estate tax

Question 5

The Form 1040 is most helpful to a person who:

Accepted Answer

A) is single with no other exemptions. 
B) makes less than $50,000 with no interest or dividends. 
C) itemizes deductions. 
D) has exempt income. 
E) has a simple tax situation. 
A) is single with no other exemptions. 
B) makes less than $50,000 with no interest or dividends. 
C) itemizes deductions. 
D) has exempt income. 
E) has a simple tax situation.

Question 6

Effective personal tax strategies include:

Accepted Answer

A) take advantage of tax credits for which you qualify. 
B) consider tax-exempt investments, such as municipal bonds. 
C) search out all possible itemized deductions. 
D) maximize contributions to tax-deferred retirement programs. 
E) All of these 
A) take advantage of tax credits for which you qualify. 
B) consider tax-exempt investments, such as municipal bonds. 
C) search out all possible itemized deductions. 
D) maximize contributions to tax-deferred retirement programs. 
E) All of these

Question 7

Which one of the following items is a set amount of income on which no taxes are paid?

Accepted Answer

A) Itemized deductions 
B) Standard deduction 
C) Deferred income 
D) Withholding 
E) Capital gains 
A) Itemized deductions 
B) Standard deduction 
C) Deferred income 
D) Withholding 
E) Capital gains

Question 8

A taxpayer with a taxable income of $47,856 and a total tax bill of $5,889 would have an average tax rate of ____ percent.

Accepted Answer

A) 8.6 
B) 10.3 
C) 12.3 
D) 14.2 
E) 16.7 
A) 8.6 
B) 10.3 
C) 12.3 
D) 14.2 
E) 16.7

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The principal purpose of taxes is to control economic conditions.

Accepted Answer

A) True 
 B)False

Question 11

An IRA,Keogh plan,and 401 plan 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 12

Estimated quarterly tax payments must be made by people who:

Accepted Answer

A) are employed in a foreign country. 
B) receive regular payroll checks. 
C) work for the government. 
D) do not have taxes withheld from income. 
E) itemize deductions. 
A) are employed in a foreign country. 
B) receive regular payroll checks. 
C) work for the government. 
D) do not have taxes withheld from income. 
E) itemize deductions.

Question 13

What type of tax is imposed on the value of an individual's property at the time of his or her death?

Accepted Answer

A) Inheritance 
B) Excise 
C) Gift 
D) Personal property 
E) Estate 
A) Inheritance 
B) Excise 
C) Gift 
D) Personal property 
E) Estate

Question 14

A short-term capital gain is profit earned on an investment that is:

Accepted Answer

A) made involving small companies. 
B) not taxed as ordinary income. 
C) held less than 12 months. 
D) in foreign companies. 
E) made in real estate. 
A) made involving small companies. 
B) not taxed as ordinary income. 
C) held less than 12 months. 
D) in foreign companies. 
E) made in real estate.

Question 15

Tax-deferred retirement plans are a type of:

Accepted Answer

A) exemption. 
B) itemized deduction. 
C) passive income. 
D) tax shelter. 
E) tax credit. 
A) exemption. 
B) itemized deduction. 
C) passive income. 
D) tax shelter. 
E) tax credit.

Question 16

The "head of household" filing status is for people who are:

Accepted Answer

A) recently divorced. 
B) recently widowed. 
C) unmarried and have dependent children. 
D) married but only one spouse has income. 
E) married and each spouse makes about the same income. 
A) recently divorced. 
B) recently widowed. 
C) unmarried and have dependent children. 
D) married but only one spouse has income. 
E) married and each spouse makes about the same income.

Question 17

A state may impose a personal property tax.

Accepted Answer

A) True 
 B)False

Question 18

An itemized deduction of $500 with a 36 percent tax rate would reduce a person's taxes by:

Accepted Answer

A) $500. 
B) $36. 
C) $464. 
D) $280. 
E) $180. 
A) $500. 
B) $36. 
C) $464. 
D) $280. 
E) $180.

Question 19

Which of the following is not true about exemptions?

Accepted Answer

A) An exemption includes a deduction for qualified dependents. 
B) Exemptions increase your taxable income. 
C) An exemption includes a deduction for yourself. 
D) An exemption includes a deduction for your spouse 
E) Each exemption is worth $4,050 in 2016. 
A) An exemption includes a deduction for qualified dependents. 
B) Exemptions increase your taxable income. 
C) An exemption includes a deduction for yourself. 
D) An exemption includes a deduction for your spouse 
E) Each exemption is worth $4,050 in 2016.

Question 20

Factors that affect a person's filing status include marital status and:

Accepted Answer

A) employment status. 
B) age. 
C) occupation. 
D) dependents. 
E) place of residence. 
A) employment status. 
B) age. 
C) occupation. 
D) dependents. 
E) place of residence.

Union dues,fees for tax return preparation,and other miscellaneous expenses are:

Which one of the following would be deducted from gross income to obtain adjusted gross income?

Personal property taxes may tax the value of:

Drew Davis earns $4,500 per month from his job at Cisco Systems; $900 is withheld from this amount each month for taxes.What type of tax is this most likely to be?

The Form 1040 is most helpful to a person who:

Effective personal tax strategies include:

Which one of the following items is a set amount of income on which no taxes are paid?

A taxpayer with a taxable income of $47,856 and a total tax bill of $5,889 would have an average tax rate of ____ percent.

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

The principal purpose of taxes is to control economic conditions.

An IRA,Keogh plan,and 401 plan are examples of:

Estimated quarterly tax payments must be made by people who:

What type of tax is imposed on the value of an individual's property at the time of his or her death?

A short-term capital gain is profit earned on an investment that is:

Tax-deferred retirement plans are a type of:

The "head of household" filing status is for people who are:

A state may impose a personal property tax.

An itemized deduction of $500 with a 36 percent tax rate would reduce a person's taxes by:

Which of the following is not true about exemptions?

Factors that affect a person's filing status include marital status and:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters

Exam 4: Planning Your Tax Strategy

Union dues,fees for tax return preparation,and other miscellaneous expenses are:

Which one of the following would be deducted from gross income to obtain adjusted gross income?

Personal property taxes may tax the value of:

Drew Davis earns $4,500 per month from his job at Cisco Systems; $900 is withheld from this amount each month for taxes.What type of tax is this most likely to be?

The Form 1040 is most helpful to a person who:

Effective personal tax strategies include:

Which one of the following items is a set amount of income on which no taxes are paid?

A taxpayer with a taxable income of $47,856 and a total tax bill of $5,889 would have an average tax rate of ____ percent.

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

The principal purpose of taxes is to control economic conditions.

An IRA,Keogh plan,and 401 plan are examples of:

Estimated quarterly tax payments must be made by people who:

What type of tax is imposed on the value of an individual's property at the time of his or her death?

A short-term capital gain is profit earned on an investment that is:

Tax-deferred retirement plans are a type of:

The "head of household" filing status is for people who are:

A state may impose a personal property tax.

An itemized deduction of $500 with a 36 percent tax rate would reduce a person's taxes by:

Which of the following is not true about exemptions?

Factors that affect a person's filing status include marital status and:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters