This quiz works best with JavaScript enabled. Home > Finance > Taxation > Income Tax Planning > Income Tax Planning – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Income Tax Planning Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. This type of income is the result of earnings from dividends, interest, and rent. A) Surplus. B) Pension. C) Investment. D) None of above. Show Answer Correct Answer: C) Investment. 2. By understanding tax laws, you can make sure you don't pay more than you have to A) Budget. B) Tax Planning. C) Investment. D) Financial Plan. Show Answer Correct Answer: B) Tax Planning. 3. A ..... is a plan in which an individual balances available resources and expenses. A) Budget. B) Income. C) Risk. D) None of above. Show Answer Correct Answer: A) Budget. 4. To encourage development of a national identity and promote a culture of national pride through tourism. This statement refer to A) Regional Tourism policy. B) Tourism policy. C) International tourism policy. D) National Tourism policy. Show Answer Correct Answer: D) National Tourism policy. 5. What is Net income? A) State taxes. B) Income before taxes. C) Income after taxes. D) Income that is not taxed. Show Answer Correct Answer: C) Income after taxes. 6. Items of value, such as bank accounts, jewelry, and automobiles. A) Personal assets. B) Net income. C) Pension. D) None of above. Show Answer Correct Answer: A) Personal assets. 7. What can help you be prepared for unexpected costs, such as car repairs? A) Short-term financial goal. B) Long-term financial goal. C) Retirement savings. D) An emergency fund. Show Answer Correct Answer: D) An emergency fund. 8. Which of these is the best example of an asset? A) The coffee someone drank this morning. B) The antique diamond necklace someone is wearing. C) An old, used airline ticket. D) The electricity in a home. Show Answer Correct Answer: B) The antique diamond necklace someone is wearing. 9. Which of the following is an example of a defined contribution benefit plan? A) 401k. B) IRA. C) Pension. D) None of above. Show Answer Correct Answer: A) 401k. 10. Which of the following is known as purchasing an item on a whim? A) Impulse. B) Flexible. C) Online purchase. D) Fixed. Show Answer Correct Answer: A) Impulse. 11. Choose the "Fixed Expense" . A) Clothing. B) Groceries. C) Mortgage payment. D) Electric bill. Show Answer Correct Answer: C) Mortgage payment. 12. What kind of expenses are costs that occur on a regular basis? A) Surplus. B) Variance. C) Fixed. D) None of above. Show Answer Correct Answer: C) Fixed. 13. Which of the following is a need? A) TV. B) Shelter. C) Cell Phone. D) Designer Clothes. Show Answer Correct Answer: B) Shelter. 14. This is money you can get to pay for college, which has to be paid back. A) Grant. B) Student Loan. C) College Savings. D) Scholarhip. Show Answer Correct Answer: B) Student Loan. 15. Which of the following is an example of a defined benefit retirement plan? A) 401k. B) IRA. C) Pension. D) None of above. Show Answer Correct Answer: C) Pension. 16. A good first step in financial planning would be to A) Hire a professional financial planner. B) Create a balance sheet and cash flow statement. C) Pay off all of your debts. D) Develop long-term financial goals. Show Answer Correct Answer: B) Create a balance sheet and cash flow statement. 17. Sometimes people run low on money during retirement. Which of the following should you do first? A) Sell your house and move into an apartment. B) Rethink your retirement goals and lifestyle. C) Find a job to increase your income. D) Invest in stocks because they have a higher rate of return. Show Answer Correct Answer: B) Rethink your retirement goals and lifestyle. 18. Assets minus liabilities A) Personal property. B) Network. C) Net worth. D) Net worthy. Show Answer Correct Answer: C) Net worth. 19. This is the form you must fill out before going to college in order to get aid from the government to pay for college A) FASFA. B) FAFSA. C) AFSAF. D) FASAF. Show Answer Correct Answer: B) FAFSA. 20. What is study preparation in tourism planning process? A) Determination of preliminary objectives. B) Projection of employees. C) Decision by government to prepare tourism plan. D) Adoption of plan. Show Answer Correct Answer: C) Decision by government to prepare tourism plan. 21. A spending and saving plan A) Budget. B) Financial plan. C) Financial saving plan. D) IRA. Show Answer Correct Answer: A) Budget. 22. Take-home pay is the amount you have left in your paycheck A) After you pay your bills for the week. B) After taxes and deductions. C) Before taxes and deductions. D) Before you pay your bills for the week. Show Answer Correct Answer: B) After taxes and deductions. 23. When one person makes an offer and another person changes it, the second person is A) Entering into an agreement. B) Committing fraud. C) Making a counteroffer. D) Providing considerations. Show Answer Correct Answer: C) Making a counteroffer. 24. Tax planning is adopted by- A) Income tax payers. B) Investors. C) Industrialists. D) All the above. Show Answer Correct Answer: D) All the above. 25. A period of time during which repayment of the principal and interest of your loan is temporarily delayed. A) Deferment. B) Forbearance. C) Consolidate. D) None of above. Show Answer Correct Answer: A) Deferment. 26. The total amount of money an individual has earned before taxes are taken out. A) Checking Account. B) Net Income. C) Gross Income. D) Overdraft. Show Answer Correct Answer: C) Gross Income. 27. The amount on which taxes are calculated after adjustments, deductions, and exemptions. A) Taxable income. B) Surplus. C) Net income. D) None of above. Show Answer Correct Answer: A) Taxable income. 28. At the beginning of the year, Coach Brewer told us to ..... A) Care & Try. B) Never miss a day of class. C) Make sure you do your homework every day. D) None of above. Show Answer Correct Answer: A) Care & Try. 29. A time-based savings goal describes ..... A) How much money needs to be saved. B) Why the money needs to be saved. C) What the money needs to be saved for. D) When the money will be saved. Show Answer Correct Answer: D) When the money will be saved. 30. In a balanced budget, A) Gross income = disposable income. B) Expenses-savings = gross income. C) Expenses + savings = earnings + borrowing. D) Expenses = savings. Show Answer Correct Answer: C) Expenses + savings = earnings + borrowing. ← PreviousNext →Related QuizzesTaxation QuizzesFinance QuizzesIncome Tax Planning Quiz 1Income Tax Planning Quiz 2Income Tax Planning Quiz 4Income Tax Planning Quiz 5Income Tax Planning Quiz 6Income Tax Planning Quiz 7Income Tax Planning Quiz 8Income Tax Planning Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books