Question 1

Money received in the form of dividends or interest is commonly called:

Accepted Answer

A) earned income. 
B) investment income. 
C) passive income. 
D) tax-deferred income. 
E) tax-exempt income. 
A) earned income. 
B) investment income. 
C) passive income. 
D) tax-deferred income. 
E) tax-exempt income.

Question 2

Maryellen Epplin worked in Mexico for part of the year and earned $50,000 while she was there.This income will not be included in her gross income for the year.This represents a tax:

Accepted Answer

A) deduction. 
B) exclusion. 
C) exemption. 
D) credit. 
E) refund. 
A) deduction. 
B) exclusion. 
C) exemption. 
D) credit. 
E) refund.

Question 3

Which form would an individual use who has less than $100,000 in taxable income from wages,salaries,tips,unemployment compensation,interest,or dividends,and who is married,over age 67,and does not itemize deductions?

Accepted Answer

A) Form 1040X 
B) Form 1040EZ 
C) Form 1040A 
D) Schedule A 
E) Schedule E 
A) Form 1040X 
B) Form 1040EZ 
C) Form 1040A 
D) Schedule A 
E) Schedule E

Question 4

What are the advantages of a 401K?

Accepted Answer

Tax-deferred retirement plans such as 40

Question 5

Al Barkley is single and earns $40,000 in taxable income.He uses the following tax rate schedule to calculate the taxes he owes.
  What is Al's average tax rate?

Accepted Answer

A) 14.43% 
B) 18.27% 
C) 21.35% 
D) 23.87% 
E) 25.00% 
A) 14.43% 
B) 18.27% 
C) 21.35% 
D) 23.87% 
E) 25.00%

Question 6

An excise tax is imposed by the federal and state governments on all of the following specific goods,except:

Accepted Answer

A) clothing. 
B) gasoline. 
C) cigarettes. 
D) tires. 
E) air travel. 
A) clothing. 
B) gasoline. 
C) cigarettes. 
D) tires. 
E) air travel.

Question 7

Which one of these terms is defined as the use of legitimate methods to reduce one's taxes?

Accepted Answer

A) Tax evasion 
B) Tax avoidance 
C) Tax exemption 
D) Tax deferral 
E) Tax deduction 
A) Tax evasion 
B) Tax avoidance 
C) Tax exemption 
D) Tax deferral 
E) Tax deduction

Question 8

Mr.and Mrs.Keating want to give their son Dudley a total of $24,000.They each write him a check for $12,000 so they won't have to pay any gift tax.This is an example of:

Accepted Answer

A) fraud. 
B) tax evasion. 
C) tax exclusion. 
D) tax avoidance. 
E) tax deferred income. 
A) fraud. 
B) tax evasion. 
C) tax exclusion. 
D) tax avoidance. 
E) tax deferred income.

Question 9

_____________ are expenses that a taxpayer is allowed to deduct from adjusted gross income.

Accepted Answer

A) Exemptions 
B) Standard deductions 
C) Itemized deductions 
D) Tax credits 
E) Passive income 
A) Exemptions 
B) Standard deductions 
C) Itemized deductions 
D) Tax credits 
E) Passive income

Question 10

A general sales tax is also referred to as an excise tax.

Accepted Answer

A) True 
 B)False

Question 11

Mike Hansen has adjusted gross income of $28,000.During the year,Mike decided he needed a larger home.He purchased a home on a golf course in the same town as his first home.Mike incurred $7,500 in moving expenses.How much of this can he include as an itemized deduction?

Accepted Answer

A) $7,500 
B) $6,340 
C) $3,750 
D) $750 
E) $0 
A) $7,500 
B) $6,340 
C) $3,750 
D) $750 
E) $0

Question 12

Taxable income is used to compute a person's:

Accepted Answer

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

Question 13

A tax credit of $50 for a person in a 28 percent tax bracket would reduce a person's taxes owed by:

Accepted Answer

A) $10 
B) $28 
C) $14 
D) $50 
E) $35 
A) $10 
B) $28 
C) $14 
D) $50 
E) $35

Question 14

Earnings from a limited partnership would be an example of ____________ income.

Accepted Answer

A) passive 
B) capital gain 
C) portfolio 
D) earned 
E) excluded 
A) passive 
B) capital gain 
C) portfolio 
D) earned 
E) excluded

Question 15

Randal Ice is 57 years old,and has adjusted gross income of $32,000.He has medical expenses for the year ending 2016 of $6,000.How much of these expenses can he include as an itemized deduction?

Accepted Answer

A) $0 
B) $2,400 
C) $2,800 
D) $3,600 
E) $4,500 Using the revised rate of 10% (until December 31, 2016 for those under 65 years old), the solution would be: $32,000 *10.10 = $3,200; $6,000 - $3,200 = $2,800. 
A) $0 
B) $2,400 
C) $2,800 
D) $3,600 
E) $4,500 Using the revised rate of 10% (until December 31, 2016 for those under 65 years old), the solution would be: $32,000 *10.10 = $3,200; $6,000 - $3,200 = $2,800.

Question 16

Capital gains refer to:

Accepted Answer

A) tax-exempt investments. 
B) retirement accounts. 
C) profits from the sale of a capital asset. 
D) earnings from investments such as dividends or interest. 
E) tax-deferred investments. 
A) tax-exempt investments. 
B) retirement accounts. 
C) profits from the sale of a capital asset. 
D) earnings from investments such as dividends or interest. 
E) tax-deferred investments.

Question 17

A tax on the value of automobiles,boats,or furniture is referred to as:

Accepted Answer

A) inheritance tax. 
B) estate tax. 
C) personal property tax. 
D) excise tax. 
E) general sales tax. 
A) inheritance tax. 
B) estate tax. 
C) personal property tax. 
D) excise tax. 
E) general sales tax.

Question 18

A tax ____________ is an amount subtracted directly from the amount of taxes owed.

Accepted Answer

A) credit 
B) exemption 
C) deduction 
D) exclusion 
E) shelter 
A) credit 
B) exemption 
C) deduction 
D) exclusion 
E) shelter

Question 19

Kim Ye is single and earns $40,000 in taxable income.He uses the following tax rate schedule to calculate the taxes he owes.
  Calculate the dollar amount of estimated taxes that Kim owes.

Accepted Answer

A) $4,000.00 
B) $5,771.25 
C) $6,000.00 
D) $10,000.00 
E) $11,200.25 
A) $4,000.00 
B) $5,771.25 
C) $6,000.00 
D) $10,000.00 
E) $11,200.25

Question 20

Which of the following would be excluded from gross income?

Accepted Answer

A) Portfolio income 
B) Investment income 
C) Exclusions 
D) Passive income 
E) Earned income 
A) Portfolio income 
B) Investment income 
C) Exclusions 
D) Passive income 
E) Earned income

Money received in the form of dividends or interest is commonly called:

Maryellen Epplin worked in Mexico for part of the year and earned $50,000 while she was there.This income will not be included in her gross income for the year.This represents a tax:

Which form would an individual use who has less than $100,000 in taxable income from wages,salaries,tips,unemployment compensation,interest,or dividends,and who is married,over age 67,and does not itemize deductions?

What are the advantages of a 401K?

Al Barkley is single and earns $40,000 in taxable income.He uses the following tax rate schedule to calculate the taxes he owes. What is Al's average tax rate?

An excise tax is imposed by the federal and state governments on all of the following specific goods,except:

Which one of these terms is defined as the use of legitimate methods to reduce one's taxes?

Mr.and Mrs.Keating want to give their son Dudley a total of $24,000.They each write him a check for $12,000 so they won't have to pay any gift tax.This is an example of:

_____________ are expenses that a taxpayer is allowed to deduct from adjusted gross income.

A general sales tax is also referred to as an excise tax.

Mike Hansen has adjusted gross income of $28,000.During the year,Mike decided he needed a larger home.He purchased a home on a golf course in the same town as his first home.Mike incurred $7,500 in moving expenses.How much of this can he include as an itemized deduction?

Taxable income is used to compute a person's:

A tax credit of $50 for a person in a 28 percent tax bracket would reduce a person's taxes owed by:

Earnings from a limited partnership would be an example of ____________ income.

Randal Ice is 57 years old,and has adjusted gross income of $32,000.He has medical expenses for the year ending 2016 of $6,000.How much of these expenses can he include as an itemized deduction?

Capital gains refer to:

A tax on the value of automobiles,boats,or furniture is referred to as:

A tax ____________ is an amount subtracted directly from the amount of taxes owed.

Kim Ye is single and earns $40,000 in taxable income.He uses the following tax rate schedule to calculate the taxes he owes. Calculate the dollar amount of estimated taxes that Kim owes.

Which of the following would be excluded from gross income?

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

Money received in the form of dividends or interest is commonly called:

Maryellen Epplin worked in Mexico for part of the year and earned $50,000 while she was there.This income will not be included in her gross income for the year.This represents a tax:

Which form would an individual use who has less than $100,000 in taxable income from wages,salaries,tips,unemployment compensation,interest,or dividends,and who is married,over age 67,and does not itemize deductions?

What are the advantages of a 401K?

Al Barkley is single and earns $40,000 in taxable income.He uses the following tax rate schedule to calculate the taxes he owes. What is Al's average tax rate?

An excise tax is imposed by the federal and state governments on all of the following specific goods,except:

Which one of these terms is defined as the use of legitimate methods to reduce one's taxes?

Mr.and Mrs.Keating want to give their son Dudley a total of $24,000.They each write him a check for $12,000 so they won't have to pay any gift tax.This is an example of:

_____________ are expenses that a taxpayer is allowed to deduct from adjusted gross income.

A general sales tax is also referred to as an excise tax.

Mike Hansen has adjusted gross income of $28,000.During the year,Mike decided he needed a larger home.He purchased a home on a golf course in the same town as his first home.Mike incurred $7,500 in moving expenses.How much of this can he include as an itemized deduction?

Taxable income is used to compute a person's:

A tax credit of $50 for a person in a 28 percent tax bracket would reduce a person's taxes owed by:

Earnings from a limited partnership would be an example of ____________ income.

Randal Ice is 57 years old,and has adjusted gross income of $32,000.He has medical expenses for the year ending 2016 of $6,000.How much of these expenses can he include as an itemized deduction?

Capital gains refer to:

A tax on the value of automobiles,boats,or furniture is referred to as:

A tax ____________ is an amount subtracted directly from the amount of taxes owed.

Kim Ye is single and earns $40,000 in taxable income.He uses the following tax rate schedule to calculate the taxes he owes. Calculate the dollar amount of estimated taxes that Kim owes.

Which of the following would be excluded from gross income?

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