This quiz works best with JavaScript enabled. Home > Taxation > Income Tax Planning > Income Tax Planning – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Income Tax Planning Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Deciding where to put your precious earnings. Money can go to living expenses, savings, investments, and toward discretionary purchases (like that new pair of shoes!). A) Cash Mangement. B) Budget. C) Investment. D) Financial Plan. Show Answer Correct Answer: A) Cash Mangement. 2. Which type of setting would have the highest rent? A) Rural Area. B) Suburb. C) Urban/Downtown Area. D) None of above. Show Answer Correct Answer: C) Urban/Downtown Area. 3. In personal finance, one makes decisions based on needs vs. wants. What is considered a need? A) Something one would like to have. B) Something ones does not budget for. C) Something one can afford. D) Something one cannot live without. Show Answer Correct Answer: D) Something one cannot live without. 4. STATE which of the 6 steps to financial goal planning is represented in this scenario: "Craig decides it's time to expand his newspaper by adding on new staff members." A) Determining Your Financial Situation. B) Developing Your Goals. C) Identifying Your Options. D) Evaluate Alternatives. E) Create and Use a Plan of Action. Show Answer Correct Answer: C) Identifying Your Options. 5. Before planning a budget, track income and expenses for A) 1 month. B) 1-2 months. C) Four to six months. D) One year. Show Answer Correct Answer: B) 1-2 months. 6. 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. 7. 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. 8. 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. 9. 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. 10. This is an example of a "Financial Goal" A) Graduating from college. B) Becoming a teacher. C) Learning to play an instrument. D) Purchasing a new home. Show Answer Correct Answer: D) Purchasing a new home. 11. What is it called when you earn interest on both the money you deposit, plus any interest you earned previously? A) Financial goal. B) Compound interest. C) A savings account. D) An emergency fund. Show Answer Correct Answer: B) Compound interest. 12. Which of the following is an expense that stays the same every month? A) Rent. B) Groceries. C) Electric. D) Credit card. Show Answer Correct Answer: A) Rent. 13. 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. 14. 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. 15. Which of the following defines frugal? A) An unplanned, spontaneous purchase. B) Not being wasteful. C) Awareness of one's environment. D) The ability to hold back one's actions. Show Answer Correct Answer: B) Not being wasteful. 16. What does a person's will list? A) Financial goals. B) Types of insurance they have. C) Retirement plans. D) Financial plan upon death. Show Answer Correct Answer: D) Financial plan upon death. 17. 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. 18. A set of goals for spending, saving and investing A) Budget. B) Financial process. C) Financial plan. D) Financial budget. Show Answer Correct Answer: C) Financial plan. 19. 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. 20. 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. ← PreviousNext →Related QuizzesTaxation 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 8Income Tax Planning Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books