This quiz works best with JavaScript enabled. Home > Finance > Taxation > Income Tax Planning > Income Tax Planning – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Income Tax Planning Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A ..... allows students to work on or off campus to earn money to help pay college costs. A) Grant. B) Federal work study. C) Federal loan. D) Scholarship. Show Answer Correct Answer: B) Federal work study. 2. This part of Social Security provides death benefits to dependents of workers who die. A) Retirement insurance. B) Disability insurance. C) Survivors insurance. D) Unemployment insurance. Show Answer Correct Answer: C) Survivors insurance. 3. How can buying a house be considered "good debt" ? A) It decreases in value over time. B) It is worth more than any other investment. C) It increases your net worth as it builds equity. D) It gives you a place to live for a long time. Show Answer Correct Answer: C) It increases your net worth as it builds equity. 4. If you have a retirement account, A) You can access the funds at any time, even though you pay a penalty to do so. B) You cannot access the funds until you officially retire. C) It is a good strategy to borrow frequently from it. D) Your opportunity cost for borrowing from it is very low. Show Answer Correct Answer: A) You can access the funds at any time, even though you pay a penalty to do so. 5. How many people are needed to have a contract A) 1. B) Minimum of 3. C) 2 or more. D) None of above. Show Answer Correct Answer: C) 2 or more. 6. In American society, which of these is an example of a want? A) Food. B) Shoes. C) Utility bills. D) Video games. Show Answer Correct Answer: D) Video games. 7. The amount of pay before all deductions refers to A) Exemption pay. B) Net pay. C) Gross pay. D) Adjusted gross income. Show Answer Correct Answer: C) Gross pay. 8. Which document is used as proof of identity? A) Cancelled check. B) Insurance policy. C) Tax return. D) Passport. Show Answer Correct Answer: D) Passport. 9. What is gross income? A) Income tax for the state. B) Income that is tax free. C) Income before taxes. D) Income after taxes. Show Answer Correct Answer: C) Income before taxes. 10. Neither discourage nor encourage tourism and adopts measures for the general development process such as on air traffic agreement and investment incentives. A) Active. B) Intermediate. C) Passive. D) None of above. Show Answer Correct Answer: C) Passive. 11. What is the maximum amount you are allowed to contribute to your IRA each year if you are 45 years old? A) $ 2500. B) $ 5000. C) $ 1000. D) $ 6000. Show Answer Correct Answer: B) $ 5000. 12. Which of the following is known as the total amount of money you expect to earn before taxes and deductions? A) Balance sheet. B) Gross income. C) Discretionary income. D) Net worth. Show Answer Correct Answer: B) Gross income. 13. A professional who analyzes a client's overall financial situation and develops a comprehensive plan that meets the client's goals and objectives. Special certifications are required in order to use the title of "financial planner." A) Insurance Agent. B) Budget Analysis. C) Wealth Mangement. D) Financial Planner. Show Answer Correct Answer: D) Financial Planner. 14. Spending for goods and services beyond the essentials like food, shelter, and clothing A) Discretionary spending. B) Unanticipated expense. C) Disposable income. D) Anticipated expense. Show Answer Correct Answer: A) Discretionary spending. 15. The following included in the scope of Tax Planning- A) Investment Planning. B) Financial Management Planning. C) Individual Tax Planning. D) All the Above. Show Answer Correct Answer: D) All the Above. 16. What are Social Security taxes used for? A) Building schools. B) Unemployment compensation. C) Income for retired and disabled people. D) Transfer payment. Show Answer Correct Answer: C) Income for retired and disabled people. 17. A percent of the cost of an item, which is charged by governments to raise money. A) Percent change. B) Interest. C) Sales tax. D) Assetts. Show Answer Correct Answer: C) Sales tax. 18. Three Rules of Financial Planning A) Spend within your means. B) Keep an eye on your money. C) Put some money away for later. D) All of the above. Show Answer Correct Answer: D) All of the above. 19. Dividing up your assets into different categories-stocks, bonds, cash, real estate, and so on-based on your financial goals and tolerance of risk. A) Budget. B) Investment. C) Asset Allocation. D) Gold. Show Answer Correct Answer: C) Asset Allocation. 20. Medium of tax Planning- A) Rebates. B) Incentives. C) Deductions. D) All the above. Show Answer Correct Answer: D) All the above. 21. What are 2 things consumers spend most of their money on? A) Food and Clothes. B) Housing and Transportation. C) Insurance and Housing. D) Transportation and Food. Show Answer Correct Answer: B) Housing and Transportation. 22. -Nation's retirement program, helps provide retirement income for elderly and pays disability benefits A) Social Security. B) 401K. C) State Tax. D) Federal Withholding. Show Answer Correct Answer: A) Social Security. 23. What is your school mascot A) Bee. B) Warsp. C) Hornet. D) None of above. Show Answer Correct Answer: C) Hornet. 24. A(n) ..... is the amount of money you plan to use for a certain budget category. A) Savings. B) Clothing. C) Fixed expenses. D) Allowance. Show Answer Correct Answer: D) Allowance. 25. When purchasing a vehicle, the most important things to compare are A) Safety & costs. B) Safety & color. C) Color. D) Colors & cost. Show Answer Correct Answer: A) Safety & costs. 26. Amounts spent for food, clothing, and other living costs. A) Cash outflows. B) Pension. C) Annuity. D) None of above. Show Answer Correct Answer: A) Cash outflows. 27. What is "devalorisation of capital" A) The process of getting investor. B) The process by which the state subsidies part of the cost of production. C) The process of getting profit and loss of the project. D) None of above. Show Answer Correct Answer: B) The process by which the state subsidies part of the cost of production. 28. This type of development normally focus on state or province, or perhaps an island group. A) National planning. B) Regional planning. C) International planing. D) Facility site planning. Show Answer Correct Answer: B) Regional planning. 29. What is the amount of money you earn, before taxes are taken out? A) Net Income. B) Gross Income. C) Property Income. D) None of above. Show Answer Correct Answer: B) Gross Income. 30. How many SDG's are set by the UN? A) 12 SDG. B) 14 SDG. C) 20 SDG. D) 17 SDG. Show Answer Correct Answer: D) 17 SDG. ← PreviousNext →Related QuizzesTaxation QuizzesFinance QuizzesIncome Tax Planning Quiz 1Income Tax Planning Quiz 2Income Tax Planning Quiz 3Income Tax Planning Quiz 4Income 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