This quiz works best with JavaScript enabled. Home > Finance > Taxation > Income Tax Planning > Income Tax Planning – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Income Tax Planning Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Before planning a budget, track income and expenses for A) One year. B) 1 month. C) Four to six months. D) 1-2 months. Show Answer Correct Answer: D) 1-2 months. 2. Your financial wants are the things you need to maintain a certain A) Short-term goal. B) Income bracket. C) Standard of living. D) Long-term goal. Show Answer Correct Answer: C) Standard of living. 3. Which of the following is the greatest source of revenue for the federal government? A) Company tax. B) Customs duty. C) Income tax. D) Goods and services tax. Show Answer Correct Answer: C) Income tax. 4. A budget only works if ..... A) You are willing to follow it. B) If someone else creates it. C) Your parents give you money. D) None of above. Show Answer Correct Answer: A) You are willing to follow it. 5. This is the amount of money you plan to use for a certain budget category. A) Surplus. B) Overflow. C) Allowance. D) None of above. Show Answer Correct Answer: C) Allowance. 6. This is an example of a "Financial Goal" A) Becoming a teacher. B) Purchasing a new home. C) Graduating from college. D) Learning to play an instrument. Show Answer Correct Answer: B) Purchasing a new home. 7. What is it called when you earn interest on both the money you deposit, plus any interest you earned previously? A) Financial goal. B) A savings account. C) An emergency fund. D) Compound interest. Show Answer Correct Answer: D) Compound interest. 8. Which of the following is an expense that stays the same every month? A) Electric. B) Credit card. C) Rent. D) Groceries. Show Answer Correct Answer: C) Rent. 9. A source of equity financiancing for small business with exceptional growth potential A) Angel. B) Venture Capital. C) Financial Planner. D) None of above. Show Answer Correct Answer: B) Venture Capital. 10. A person's taxes can be reduced by A) Exemptions. B) A tax credit. C) Donations to charitable organizations. D) All are true. Show Answer Correct Answer: D) All are true. 11. Which of the following defines frugal? A) Not being wasteful. B) An unplanned, spontaneous purchase. C) The ability to hold back one's actions. D) Awareness of one's environment. Show Answer Correct Answer: A) Not being wasteful. 12. What does a person's will list? A) Types of insurance they have. B) Retirement plans. C) Financial plan upon death. D) Financial goals. Show Answer Correct Answer: C) Financial plan upon death. 13. The last step in the financial decision making process is to A) Evaluate the decision, process, and outcome. B) Consider all possible options. C) Never start the process. D) Identify the decision to be made. Show Answer Correct Answer: A) Evaluate the decision, process, and outcome. 14. A set of goals for spending, saving and investing A) Financial plan. B) Financial budget. C) Budget. D) Financial process. Show Answer Correct Answer: A) Financial plan. 15. This occurs when a family spends less than they have budgeted for a month, A) Outlflows. B) Surplus. C) Variance. D) None of above. Show Answer Correct Answer: B) Surplus. 16. If you have a budget, you should A) Learn how to plan for financial emergencies. B) Never buy anything on credit. C) Be able to buy anything you want. D) All of the above. Show Answer Correct Answer: A) Learn how to plan for financial emergencies. 17. Ali wants to buy a new laptop. He writes down a goal of saving $ 1, 200. What detail is this goal missing? A) It is not time-based. B) It is not realistic. C) It is not measurable. D) It is not attainable. Show Answer Correct Answer: A) It is not time-based. 18. This is our nation's retirement program ..... it helps provide retirement income for elderly and pays disability benefits A) State Tax. B) Federal Withholding. C) Social Security. D) 401K. Show Answer Correct Answer: C) Social Security. 19. Underdevelopment can best be described as ..... A) Lacking development because of colonisation. B) Being poor with widespread starvation. C) Being under resourced as a result of poor economic factors. D) Not having enough money and technology to use resources properly. Show Answer Correct Answer: D) Not having enough money and technology to use resources properly. 20. This singer and songwriter in the early 1990s, reigned as America's most popular rap artist. He had great success with a megahit album, "Please Hammer, Don't Hurt 'Em, " and a hit single, "U Can't Touch This." A) New Edition. B) Bobby Brown. C) MC Hammer. D) None of above. Show Answer Correct Answer: C) MC Hammer. 21. What is not considered an advantage to owning a home? A) Building equity. B) Appreciation. C) Maintenance costs. D) None of the above. Show Answer Correct Answer: C) Maintenance costs. 22. The following are types of personal relief for resident individuals in tax calculation.I. Purchase of booksII. Takaful/insurance payment for medical benefitsIII. Medical expenses for parentsIV. Amount deposited in unit trust A) II and III. B) II, III, and IV. C) I, II, and III. D) All the above. Show Answer Correct Answer: C) I, II, and III. 23. A comprehensive strategy designed to help individuals achieve specific financial goals and prepare for unexpected life challenges or events. A) Investment. B) Wealth Management. C) Budget. D) Financial Plan. Show Answer Correct Answer: D) Financial Plan. 24. If actual spending is greater than planned spending, it is referred to as a A) Surfeit. B) Surplus.. C) Deficit. D) Liability. Show Answer Correct Answer: C) Deficit. 25. Why is putting even a small amount into savings from every paycheck a smart money habit? A) Because it allows you to pay all of your bills. B) Because even small amounts add up with interest. C) So you will be prepared for every emergency expense. D) Because it is a quick way to improve your credit score. Show Answer Correct Answer: B) Because even small amounts add up with interest. 26. "Put your money to work for you" A) Investment. B) Gold. C) Financial Planner. D) Budget. Show Answer Correct Answer: A) Investment. 27. The risk is shared among all the takaful participants is the best to define A) Risk transfer. B) Risk management. C) Risk sharing. D) Risk retention. Show Answer Correct Answer: C) Risk sharing. 28. Making sure that your financial affairs are in order when you die. A) Financial Advisor. B) Budget. C) Estate Planning. D) Wealth Management. Show Answer Correct Answer: C) Estate Planning. 29. Following are types of risk management I. Risk avoidance II. Risk retention III. Risk sharing IV. Risk transfer A) I and II only. B) I, II and III. C) I, II and IV. D) All the above. Show Answer Correct Answer: D) All the above. 30. The standards used to determine what is important to a person. A) Do unto others. B) Goals. C) Assets. D) Values. Show Answer Correct Answer: D) Values. ← 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 8Income Tax Planning Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books