This quiz works best with JavaScript enabled. Home > Finance > Taxation > Income Tax Planning > Income Tax Planning – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Income Tax Planning Quiz 10 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Calculate the missing amount for BLiabilities A) $ 5, 200. B) $ 1, 800. C) $ 3, 000. D) $ 7, 000. Show Answer Correct Answer: A) $ 5, 200. 2. Zoya's friends invited her to go on a trip abroad during summer vacation. She's excited to go and writes down a goal of saving enough money over the next five months. What detail is this goal missing? A) It is not measurable. B) It is not time-based. C) It is not attainable. D) It is not realistic. Show Answer Correct Answer: A) It is not measurable. 3. This month Anthony's take-home pay was $ 1, 500. He also earned $ 20 interest on a savings account. He spent $ 250 for rent, $ 100 for groceries, and $ 300 for other expenses. Anthony's net cash flow this month totaled A) $ 1, 520. B) $ 850. C) $ 1, 500. D) $ 870. Show Answer Correct Answer: D) $ 870. 4. A down payment, property tax, and maintenance costs are all considerations you need to make when ..... A) Retiring. B) Investing in stocks. C) Renting a home. D) Buying a home. Show Answer Correct Answer: D) Buying a home. 5. How the establishment of new company help to solve the issue of interest restrictions? A) No borrowing fully equity. B) Distribute as dividends. C) Shares lower than net worth. D) Both share are acquire. Show Answer Correct Answer: A) No borrowing fully equity. 6. Establish a relationship of trust with the client 2.Gather client data and establish financial goals3.Analyze the datathese are the first 3 steps of A) Code of Ethics. B) Financial Plan. C) Income Investment. D) None of above. Show Answer Correct Answer: B) Financial Plan. 7. If you are concerned about your investment losing money instead of appreciating, then you are worried about ..... risk. A) Financial. B) Market. C) Fraud. D) Inflation. Show Answer Correct Answer: B) Market. 8. Which of these is not a term for someone living in a rented space? A) Renter. B) Tenant. C) Homeowner. D) None of above. Show Answer Correct Answer: C) Homeowner. 9. The competence or legal ability of a person to enter a contract is ..... A) Consideration. B) Contractual capacity. C) Agreement. D) Legality. Show Answer Correct Answer: B) Contractual capacity. 10. Why do people invest when risk is involved? A) Because they do not understand that investing is risky. B) Because the talk about risk is really overstated; investing is a safe bet. C) Because the potential to make money is greater than the risk of losing it. D) Because they are greedy and believe they can beat the odds to become a millionaire. Show Answer Correct Answer: C) Because the potential to make money is greater than the risk of losing it. 11. Someone who, individually or as a member of a company, operates an establishment for the deposit or loan of money. A) Banker. B) Insurance Agent. C) Loan Officer. D) Financial Planner. Show Answer Correct Answer: A) Banker. 12. Which is a flexible expense A) Mortgage. B) Rent. C) Car payment. D) Gasoline. Show Answer Correct Answer: D) Gasoline. 13. If you are looking to use good debt build equity, which of the following would you purchase? A) A house. B) A car. C) An RV. D) A boat. Show Answer Correct Answer: A) A house. 14. ..... expenses are costs that do not change from month to month. A) Fixed. B) Variable. C) Conditional. D) Regular. Show Answer Correct Answer: A) Fixed. 15. A series of regular payments made to a retired worker under an organized plan. A) Pension. B) Financial plan. C) Personal assets. D) None of above. Show Answer Correct Answer: A) Pension. 16. Which of the following should an emergency fund be used to pay for? A) New boat. B) Monthly bills. C) Car repairs. D) College classes. Show Answer Correct Answer: C) Car repairs. 17. What do financial planning skills ultimately enable an individual to do? A) To process their own tax returns. B) To prepare for the future. C) To become wealthier without saving money. D) To stop spending. Show Answer Correct Answer: B) To prepare for the future. 18. When preparing a budget, focus mostly on you A) Taxable income. B) Net income. C) Gross income. D) Disposable income. Show Answer Correct Answer: D) Disposable income. 19. Which of the following is a characteristic of a Roth IRA? A) Money invested into a Roth is "after-tax" dollars. B) Once money is deposited into a Roth IRA, it cannot be taken out until retirement. C) Money invested into a Roth is "before-tax" dollars. D) Money is deposited into a Roth by your employer. Show Answer Correct Answer: A) Money invested into a Roth is "after-tax" dollars. 20. When investing, the basic rule is this:The GREATER the potential to gain higher earnings, the A) Less likely you are to invest. B) Greater the potential for fraud. C) Higher the level of risk. D) Lower the level of risk. Show Answer Correct Answer: C) Higher the level of risk. 21. The financial planning process consists of ..... steps A) 5. B) 6. C) 3. D) None of above. Show Answer Correct Answer: B) 6. 22. Most experts recommend saving ..... % of your disposal income each pay period A) 10. B) 30. C) 50. D) 20. Show Answer Correct Answer: A) 10. 23. Those things that are basic and necessary for a decent quality of life A) Want. B) Value. C) Needs. D) None of above. Show Answer Correct Answer: C) Needs. 24. The BEST way to protect yourself from fraud risk is to A) Invest only with reputable companies. B) Ask your friends for suggestions before investing. C) Keep your money is a savings account at a local bank. D) Invest heavily in jewelry and gold. Show Answer Correct Answer: A) Invest only with reputable companies. 25. There are four steps in solving one's personal financial challenges:1. considering opportunity costs2. assessing risks and returns3. setting short-and long-term goals4. assessing needs and wantsWhich of these is the correct order of these steps? A) 2, 1, 3, 4. B) 1, 2, 3, 4. C) 4, 1, 2, 3. D) 4, 2, 3, 1. Show Answer Correct Answer: C) 4, 1, 2, 3. 26. Putting money to use that you hope will increase its value over time is called: A) Average rate of return. B) Compound interest. C) Investing. D) Net worth. Show Answer Correct Answer: C) Investing. 27. Personal finance skills have the most significant impact on an individual's A) Education. B) Neighborhood safety. C) Quality of life. D) Career. Show Answer Correct Answer: C) Quality of life. 28. What type of organization will offer a 403(c) as a retirement plan? A) Nonprofit/government. B) Giant company. C) Airline. D) Private business. Show Answer Correct Answer: A) Nonprofit/government. 29. Which budget is the best to create and most accurate A) Any of these. B) Monthly. C) Weekly. D) Bi-weekly. Show Answer Correct Answer: A) Any of these. 30. What type of information is included on a 1040 form? A) Your financial projection. B) A list of all expenses. C) Gross and net income from last year. D) Your bank statement from last year. Show Answer Correct Answer: C) Gross and net income from last year. ← PreviousNext →Related QuizzesTaxation QuizzesFinance QuizzesIncome Tax Planning Quiz 1Income Tax Planning Quiz 2Income Tax Planning Quiz 3Income Tax Planning Quiz 4Income Tax Planning Quiz 5Income Tax Planning Quiz 6Income Tax Planning Quiz 7Income Tax Planning Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books