Question 1

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

Accepted Answer

A)  business income 
B)  earned or employment 
C)  excluded 
D)  capital gain 
E)  investment 
A)  business income 
B)  earned or employment 
C)  excluded 
D)  capital gain 
E)  investment

Question 2

According to the textbook, for which groups would a TFSA be particularly beneficial and why?

Accepted Answer

• Canadians with below-average incomes-T

Question 3

Tax-exempt income has a greater financial benefit than tax-deferred income.

Accepted Answer

A) True 
 B)False

Question 4

Winning a $10,000 the lottery affects a person's tax situation by

Accepted Answer

A)  increasing the standard deduction by $10,000. 
B)  increasing the taxpayer's marginal tax rate to 50%. 
C)  is taxed at the same rate as capital gains. 
D)  is not taxed. 
E)  is added to income and taxed accordingly. 
A)  increasing the standard deduction by $10,000. 
B)  increasing the taxpayer's marginal tax rate to 50%. 
C)  is taxed at the same rate as capital gains. 
D)  is not taxed. 
E)  is added to income and taxed accordingly.

Question 5

"Grossed-up" Canadian dividends are multiplied by what amount in order to determine the level of taxable dividends?

Accepted Answer

A)  15% 
B)  18.97% 
C)  45% 
D)  50% 
E)  60% 
A)  15% 
B)  18.97% 
C)  45% 
D)  50% 
E)  60%

Question 6

Estimated quarterly tax installments must be made by those who

Accepted Answer

A)  are employed in a foreign country. 
B)  receive dividends. 
C)  work for the government. 
D)  owe year-end taxes of over $2,000 for both the current year and either of the two preceding y years. 
E)  have been caught committing fraud. 
A)  are employed in a foreign country. 
B)  receive dividends. 
C)  work for the government. 
D)  owe year-end taxes of over $2,000 for both the current year and either of the two preceding y years. 
E)  have been caught committing fraud.

Question 7

Real-estate property taxes are significant but not a major source of revenue for local governments.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 11

How is taxable income computed?

Accepted Answer

Taxable income is a result of subtractin

Question 12

List the components that should be included in a good tax recordkeeping system.

Accepted Answer

Tax Returns and Tax
Filing Information
•

Question 13

An estate tax is imposed on the value of an individual's property at the time of his or her death.

Accepted Answer

A) True 
 B)False

Question 14

Taxes are only considered in financial planning in April.

Accepted Answer

A) True 
 B)False

Question 15

Jennifer made $2,000 worth of charitable donations. Her total income is $36,000 and she is in the 22% federal tax bracket. What is her charitable donations tax credit?

Accepted Answer

A)  $320 
B)  $440 
C)  $552 
D)  $2,000 
E)  $5,760 
A)  $320 
B)  $440 
C)  $552 
D)  $2,000 
E)  $5,760

Question 16

Most taxpayers have to file quarterly payments of estimated amounts owed for taxes.

Accepted Answer

A) True 
 B)False

Question 17

The ______________ property tax is based on the value of land and buildings.

Accepted Answer

A)  personal 
B)  real estate 
C)  direct 
D)  proportional 
E)  regressive 
A)  personal 
B)  real estate 
C)  direct 
D)  proportional 
E)  regressive

Question 18

Capital gains refer to

Accepted Answer

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

Question 19

A province may impose a personal property tax.

Accepted Answer

A) True 
 B)False

Question 20

Sheira Harvey worked in Poland for part of the year and earned $50,000 while she was there. This income will not be included in her income for the year. This represents:

Accepted Answer

A)  A deduction 
B)  An exclusion 
C)  An exemption 
D)  A tax credit 
E)  An increase of income 
A)  A deduction 
B)  An exclusion 
C)  An exemption 
D)  A tax credit 
E)  An increase of income

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

According to the textbook, for which groups would a TFSA be particularly beneficial and why?

Tax-exempt income has a greater financial benefit than tax-deferred income.

Winning a $10,000 the lottery affects a person's tax situation by

"Grossed-up" Canadian dividends are multiplied by what amount in order to determine the level of taxable dividends?

Estimated quarterly tax installments must be made by those who

Real-estate property taxes are significant but not a major source of revenue for local governments.

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

Which of the following is a standard tax credit?

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

How is taxable income computed?

List the components that should be included in a good tax recordkeeping system.

An estate tax is imposed on the value of an individual's property at the time of his or her death.

Taxes are only considered in financial planning in April.

Jennifer made $2,000 worth of charitable donations. Her total income is $36,000 and she is in the 22% federal tax bracket. What is her charitable donations tax credit?

Most taxpayers have to file quarterly payments of estimated amounts owed for taxes.

The ______________ property tax is based on the value of land and buildings.

Capital gains refer to

A province may impose a personal property tax.

Sheira Harvey worked in Poland for part of the year and earned $50,000 while she was there. This income will not be included in her income for the year. This represents:

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

The Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source 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

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

According to the textbook, for which groups would a TFSA be particularly beneficial and why?

Tax-exempt income has a greater financial benefit than tax-deferred income.

Winning a $10,000 the lottery affects a person's tax situation by

"Grossed-up" Canadian dividends are multiplied by what amount in order to determine the level of taxable dividends?

Estimated quarterly tax installments must be made by those who

Real-estate property taxes are significant but not a major source of revenue for local governments.

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

Which of the following is a standard tax credit?

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

How is taxable income computed?

List the components that should be included in a good tax recordkeeping system.

An estate tax is imposed on the value of an individual's property at the time of his or her death.

Taxes are only considered in financial planning in April.

Jennifer made $2,000 worth of charitable donations. Her total income is $36,000 and she is in the 22% federal tax bracket. What is her charitable donations tax credit?

Most taxpayers have to file quarterly payments of estimated amounts owed for taxes.

The ______________ property tax is based on the value of land and buildings.

Capital gains refer to

A province may impose a personal property tax.

Sheira Harvey worked in Poland for part of the year and earned $50,000 while she was there. This income will not be included in her income for the year. This represents:

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

The Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source 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