Question 1

Capital gains refer to:

Accepted Answer

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

Question 2

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 3

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

Accepted Answer

The answer of What factors determine whether a taxpayer will...

Question 4

How is taxable income computed?

Accepted Answer

The answer of How is taxable income computed?...

Question 5

Real-estate property taxes are a major source of revenue for local governments.

Accepted Answer

A) True 
 B)False

Question 6

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 (AGI)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 7

Ms.Nelson is a single mom with three children;Dana is 18 and a high school senior,Derrick is 20 and a college sophomore,and Tonya is 25 and unemployed.All three children live at home.How many exemptions can Ms.Nelson claim on her tax return?

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 4 
E) 0 
A) 1 
B) 2 
C) 3 
D) 4 
E) 0

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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) 15.45% 
B) 18.27% 
C) 21.35% 
D) 23.87% 
E) 25.00% 
A) 15.45% 
B) 18.27% 
C) 21.35% 
D) 23.87% 
E) 25.00%

Question 10

The state of Oklahoma imposes a tax of $.17 per gallon on gasoline.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 11

Which one of the following is a retirement plan sponsored by an employer?

Accepted Answer

A) Roth IRA 
B) Education IRA 
C) Keogh Account 
D) 401(k)Plan 
E) Traditional IRA 
A) Roth IRA 
B) Education IRA 
C) Keogh Account 
D) 401(k)Plan 
E) Traditional IRA

Question 12

A allows a taxpayer to put pre-tax dollars into an employer-sponsored program to cover medical and child care costs.

Accepted Answer

A) tax credit 
B) tax deduction 
C) flexible spending account 
D) tax deferred investment 
E) tax exempt investment 
A) tax credit 
B) tax deduction 
C) flexible spending account 
D) tax deferred investment 
E) tax exempt investment

Question 13

Estimated quarterly tax payments must be made by people who:

Accepted Answer

A) are employed in a foreign country. 
B) receive dividends. 
C) work for the government. 
D) do not have adequate amounts withheld from income. 
E) itemize deductions. 
A) are employed in a foreign country. 
B) receive dividends. 
C) work for the government. 
D) do not have adequate amounts withheld from income. 
E) itemize deductions.

Question 14

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

Accepted Answer

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

Question 15

A state may impose a personal property tax.

Accepted Answer

A) True 
 B)False

Question 16

What are the advantages of a 401K?

Accepted Answer

The answer of What are the advantages of a 401K?...

Question 17

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 deduct from adjusted gross income?

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

Capital gains refer to:

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?

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

How is taxable income computed?

Real-estate property taxes are a major source of revenue for local governments.

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 (AGI)would be:

Ms.Nelson is a single mom with three children;Dana is 18 and a high school senior,Derrick is 20 and a college sophomore,and Tonya is 25 and unemployed.All three children live at home.How many exemptions can Ms.Nelson claim on her tax return?

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

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?

The state of Oklahoma imposes a tax of $.17 per gallon on gasoline.What type of tax is this most likely to be?

Which one of the following is a retirement plan sponsored by an employer?

A allows a taxpayer to put pre-tax dollars into an employer-sponsored program to cover medical and child care costs.

Estimated quarterly tax payments must be made by people who:

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

A state may impose a personal property tax.

What are the advantages of a 401K?

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 deduct from adjusted 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 Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 4: Planning Your Tax Strategy

Capital gains refer to:

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?

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

How is taxable income computed?

Real-estate property taxes are a major source of revenue for local governments.

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 (AGI)would be:

Ms.Nelson is a single mom with three children;Dana is 18 and a high school senior,Derrick is 20 and a college sophomore,and Tonya is 25 and unemployed.All three children live at home.How many exemptions can Ms.Nelson claim on her tax return?

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

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?

The state of Oklahoma imposes a tax of $.17 per gallon on gasoline.What type of tax is this most likely to be?

Which one of the following is a retirement plan sponsored by an employer?

A allows a taxpayer to put pre-tax dollars into an employer-sponsored program to cover medical and child care costs.

Estimated quarterly tax payments must be made by people who:

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

A state may impose a personal property tax.

What are the advantages of a 401K?

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 deduct from adjusted 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 Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters