This quiz works best with JavaScript enabled. Home > Finance > Taxation > Income Tax Planning > Income Tax Planning – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Income Tax Planning Quiz 8 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The initial amount of money borrowed or saved. A) Tax. B) Interest. C) Principal. D) Rate. Show Answer Correct Answer: C) Principal. 2. Which is a personal record A) Personal property inventory. B) Income and expense records. C) Net worth statements, tax records, car titles, insurance polices. D) All of these. Show Answer Correct Answer: D) All of these. 3. What are the school colors A) Blue and gold. B) Navy blue and white. C) Carolina blue and white. D) None of above. Show Answer Correct Answer: B) Navy blue and white. 4. Causes of tax evasion- A) Higher Tax rates. B) Complexities of provisions. C) Corruption. D) All the above. Show Answer Correct Answer: D) All the above. 5. Which of the following best describes a budget? A) A financial tool for consumers with little money. B) A plan for saving and spending money. C) A set of restrictions on how to spend money. D) A statement of your assets and liabilities. Show Answer Correct Answer: B) A plan for saving and spending money. 6. When renting a home, what term refers to the owner of the home? A) Boss. B) Coach. C) Tenant. D) Landlord. Show Answer Correct Answer: D) Landlord. 7. Which of the following would be considered a variable expense A) Grocery bill. B) Utility bill. C) Rent. D) Car loan. Show Answer Correct Answer: A) Grocery bill. 8. What is "Earned Income" ? A) Salary. B) A birthday gift. C) Unemployment compensation. D) Winning the lottery. Show Answer Correct Answer: A) Salary. 9. When planning for retirement, you need to determine A) How much money you need to live in a nursing home or retirement center. B) How much money you want your children to inherit. C) How much money you will need and how many years you will need it. D) Where you plan to live after you quit working. Show Answer Correct Answer: C) How much money you will need and how many years you will need it. 10. Why do you need to keep a record of donations to charity for? A) Legal proof. B) Loan applications. C) Tax purposes. D) Medical reasons. Show Answer Correct Answer: C) Tax purposes. 11. Which federal loans are available for parents to take out for their children's education? A) Direct PLUS Loans. B) Unsubsidized Direct Loans. C) Perkins Loans. D) Subsidized Direct Loans. Show Answer Correct Answer: A) Direct PLUS Loans. 12. Which of the following is an example of good debt? 1. Student loan 2. Cash advance 3. Payday loan 4. Business loan A) 1, 2, 3. B) 2, 3. C) 1, 4. D) 3, 4. Show Answer Correct Answer: C) 1, 4. 13. Mateo wants to buy a new guitar and amp that will cost about $ 2, 500. He works part time at a cafe and brings home around $ 500 per week. He tells his friends he plans to buy the guitar in about two months. What detail of this goal is missing? A) It is not specific. B) It is not time-based. C) It is not measurable. D) It is not realistic. Show Answer Correct Answer: D) It is not realistic. 14. Aims to promote safe, regular and economical air transport, faster air commerce and study problems connected with the industry A) PTTA. B) UNWTO. C) IATA. D) ICAO. Show Answer Correct Answer: C) IATA. 15. Which of the following is known as something you own. A) Net worth. B) Liabilities. C) Assets. D) Gross income. Show Answer Correct Answer: C) Assets. 16. All of the following are ways to help minimize depreciation except A) It doesn't matter what you do you cannot slow depreciation. B) Buy cars that have manufacturer's warranties that are still valid. C) Keep the car maintenance up to date. D) Buy slightly used cars about 1-3 years old. Show Answer Correct Answer: A) It doesn't matter what you do you cannot slow depreciation. 17. Elizabeth Eliting was a student at New York University in ..... when she decided to start a company that would help other companies translate and publish materials in various languages. A) 1992. B) 1994. C) 1996. D) None of above. Show Answer Correct Answer: A) 1992. 18. What does refinance mean? A) A loan which uses the equity in your house to secure your loan. B) An estimate of the value of the property. C) A home loan in which the interest rate changes depending on current rates in effort. D) To finance a home again with a new loan & a new interest rate. Show Answer Correct Answer: D) To finance a home again with a new loan & a new interest rate. 19. Which of the following contracts must be signed to be legally binding A) Contract involving sale of farmhouse. B) An agreement to purchase a $ 50 MP3 Player. C) A promise that you will feed your neighbor's cat over the weekend. D) All of these. Show Answer Correct Answer: A) Contract involving sale of farmhouse. 20. What is a down payment? A) A sum of money that you pay at closing. B) Percentage earned of sale price. C) A loan which uses the equity in your house to secure you loan. D) None of above. Show Answer Correct Answer: A) A sum of money that you pay at closing. 21. When assets are greater than liabilities, you are said to be A) Credit worthy. B) Rich. C) Solvent. D) Insolvent. Show Answer Correct Answer: C) Solvent. 22. How do taxes affect your financial plans? A) They create higher interest rates. B) They affect how much money you actually have to spend. C) They make your saving account increase. D) They affect the GDP. Show Answer Correct Answer: B) They affect how much money you actually have to spend. 23. Which of the following is the key to becoming financially secure for the average person? A) Making a large salary. B) Starting to save or invest at an early age. C) Working multiple jobs. D) Inheriting money. Show Answer Correct Answer: B) Starting to save or invest at an early age. 24. What is the main reason you should start saving for retirement as early as possible? A) To ensure that you save enough money to travel the world. B) To give your money time to grow with compound interest. C) So that you can enjoy your money while you're young and able to spend it. D) So you have enough time to decide where you would like to retire. Show Answer Correct Answer: B) To give your money time to grow with compound interest. 25. Also known as take home pay, this is the amount left after all payroll deductions have been taken from the gross income A) Net pay. B) Withholdings. C) Real pay. D) Gross pay. Show Answer Correct Answer: A) Net pay. 26. Planning on saving enough money to go on a nice vacation is an example of: A) Wealth. B) Investment. C) Financial Goal. D) Need. Show Answer Correct Answer: C) Financial Goal. 27. How does an increase in your income affect your tax liability? A) Your tax liability will remain the same. B) Your tax liability will increase. C) Your tax liability will decrease. D) Your tax liability will be annulled. Show Answer Correct Answer: B) Your tax liability will increase. 28. Maintaining and growing one's finances. Also refers to a professional service that is the combination of financial/investment advice, accounting/tax services, and legal/estate planning. A) Wealth Management. B) Insurance Agent. C) Financial Plan. D) Budget. Show Answer Correct Answer: A) Wealth Management. 29. Following are instruments used in Islamic estate planning, EXCEPT A) Hibah. B) Sedeqah. C) Will. D) Matrimonial asset. Show Answer Correct Answer: B) Sedeqah. 30. Prepare ourselves for that time when we no longer can (or want) to work. A) Risk Mangement. B) Estate Planning. C) Retirement Planning. D) Wealth Management. Show Answer Correct Answer: C) Retirement Planning. ← 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 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books