Personal Finance WEEK 9 QUIZ FINAL EXAM

| October 3, 2018

1. Which of the
following is NOT a tax credit?
a. Adoption tax credit
b.
Domestic tax credit
c. Foreign tax credit
d. Retirement tax credit

2. Which of the following is NOT accurate?

a. A tax credit is the amount subtracted from
the tax amount owed.
b. A tax deduction is the amount subtracted from
your adjusted gross income.
c. An
exclusion is an amount included in your adjusted gross income.
d. An exemption is a deduction from your
adjusted gross income.

3. Fred has been completing his own tax return
for many years. The IRS has recently contacted him with questions about some of
his prior returns. How many years back is he responsible for providing
documentation?

a. Until he files his returns
b. 3 years
c. 6
years
d. 10 years

4. When are taxes due?

a. April 1
b. April 29
c. Anytime in April
d. April
15

5. Flat taxes are:

a. Available to everyone not income based
b. The
higher income the higher interest rate
c. Must be paid in full
d. None of these

6. At the end of the year, employees receive a
________ form that reports annual earnings and the amounts deducted for taxes
from their employers.

a. 1040
b. 1099
c. W-2
d. W-4

7. The major sections of Form 1040 include all
of the following except

a. Filing status and exemptions
b. Adjustments to income (AGI)
c. Tax credits
d. All
of these are major sections of Form 1040.

8. Cameron, age 25, sustained a debilitating
injury and was unable to perform his job for 45 days. His employer had a
disability income insurance policy that pays 70% of take-home pay with an
elimination period of 60 days and coverage up to age 65. Given this
information, which of the following is true for Cameron?

a. He will receive disability income for 15
days.
b. He will receive disability income for 45
days.
c. He will receive disability income for 60
days.
d. He
will not be eligible for any disability income because his disability ended
before the elimination period ended.

9. SMART Goals contain all of the following
except:

a. Specific – knowing exactly what the goals are
and how to attain them
b. Action Oriented – the bases for the goals
c.
Manageable – to be able to understand the written goals
d. Time based – the time frame needed to reach
the goal

10. Rachel has a net monthly income of $2,500.
She has a monthly auto payment of $275, a student loan payment of $150, and a
minimum credit card payment of $50. What is her debt-payments-to-income ratio?
a. 8%
b. 13%
c. 19%
d. 22%

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