Question 1

Reductions from gross income for such items as individual retirement account contributions and alimony payments will result in:

Accepted Answer

A) adjusted gross income. 
B) taxable income. 
C) earned income. 
D) passive income. 
E) total exclusions. 
A) adjusted gross income. 
B) taxable income. 
C) earned income. 
D) passive income. 
E) total exclusions.

Question 2

What factors determine whether a taxpayer will use the Form 1040EZ,Form 1040A,or Form 1040?

Accepted Answer

The 1040 form used by a taxpayer is infl

Question 3

Money received in the form of dividends or interest is classified as ____________ income.

Accepted Answer

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

Question 4

The interest paid on which type of loan is not tax deductible?

Accepted Answer

A) Home equity loan interest 
B) Credit card interest 
C) Mortgage interest for a primary residence 
D) Mortgage interest for a second home 
E) Investment interest up to the amount of investment income 
A) Home equity loan interest 
B) Credit card interest 
C) Mortgage interest for a primary residence 
D) Mortgage interest for a second home 
E) Investment interest up to the amount of investment income

Question 5

Elizabeth Gleason just died.At the time of her death the total value of her assets was $150,000.The federal government collected $7,500 in taxes based on this value.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 6

Which one of the following is a retirement plan that allows a $5,500 annual contribution with tax-free earnings after five years?

Accepted Answer

A) Roth IRA 
B) Education IRA 
C) Keogh Account 
D) 401 Plan 
E) SEP 
A) Roth IRA 
B) Education IRA 
C) Keogh Account 
D) 401 Plan 
E) SEP

Question 7

To minimize taxes owed,you should do the following if you expect to have a higher tax rate next year:

Accepted Answer

A) Accelerate deductions into the current year 
B) Delay the receipt of income until next year 
C) Delay deductions until next year 
D) All of these 
E) None of these 
A) Accelerate deductions into the current year 
B) Delay the receipt of income until next year 
C) Delay deductions until next year 
D) All of these 
E) None of these

Question 8

George Washburn had earnings from his salary of $34,000,interest on savings of $800,a contribution to a traditional individual retirement account of $1,500,and dividends from mutual funds of $600.George's adjusted income would be:

Accepted Answer

A) $33,900. 
B) $34,000. 
C) $34,600. 
D) $34,800. 
E) $35,400. 
A) $33,900. 
B) $34,000. 
C) $34,600. 
D) $34,800. 
E) $35,400.

Question 9

Two types of education savings plans are the Coverdell Education Savings Account and the:

Accepted Answer

A) 401k. 
B) 529 plan. 
C) Keogh plan. 
D) traditional IRA. 
E) Roth IRA. 
A) 401k. 
B) 529 plan. 
C) Keogh plan. 
D) traditional IRA. 
E) Roth IRA.

Question 10

Examples of tax credits do not include a/an _______________ tax credit.

Accepted Answer

A) energy-saving 
B) adoption 
C) elderly and disabled 
D) credit card 
E) savers 
A) energy-saving 
B) adoption 
C) elderly and disabled 
D) credit card 
E) savers

Question 11

Money received by an individual for personal effort is classified as ______________ income.

Accepted Answer

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

Reductions from gross income for such items as individual retirement account contributions and alimony payments will result in:

What factors determine whether a taxpayer will use the Form 1040EZ,Form 1040A,or Form 1040?

Money received in the form of dividends or interest is classified as ____________ income.

The interest paid on which type of loan is not tax deductible?

Elizabeth Gleason just died.At the time of her death the total value of her assets was $150,000.The federal government collected $7,500 in taxes based on this value.What type of tax is this most likely to be?

Which one of the following is a retirement plan that allows a $5,500 annual contribution with tax-free earnings after five years?

To minimize taxes owed,you should do the following if you expect to have a higher tax rate next year:

George Washburn had earnings from his salary of $34,000,interest on savings of $800,a contribution to a traditional individual retirement account of $1,500,and dividends from mutual funds of $600.George's adjusted income would be:

Two types of education savings plans are the Coverdell Education Savings Account and the:

Examples of tax credits do not include a/an _______________ tax credit.

Money received by an individual for personal effort is classified as ______________ 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

Reductions from gross income for such items as individual retirement account contributions and alimony payments will result in:

What factors determine whether a taxpayer will use the Form 1040EZ,Form 1040A,or Form 1040?

Money received in the form of dividends or interest is classified as ____________ income.

The interest paid on which type of loan is not tax deductible?

Elizabeth Gleason just died.At the time of her death the total value of her assets was $150,000.The federal government collected $7,500 in taxes based on this value.What type of tax is this most likely to be?

Which one of the following is a retirement plan that allows a $5,500 annual contribution with tax-free earnings after five years?

To minimize taxes owed,you should do the following if you expect to have a higher tax rate next year:

George Washburn had earnings from his salary of $34,000,interest on savings of $800,a contribution to a traditional individual retirement account of $1,500,and dividends from mutual funds of $600.George's adjusted income would be:

Two types of education savings plans are the Coverdell Education Savings Account and the:

Examples of tax credits do not include a/an _______________ tax credit.

Money received by an individual for personal effort is classified as ______________ 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