This quiz works best with JavaScript enabled. Home > Taxation > Income Tax Planning > Income Tax Planning – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Income Tax Planning Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following would be considered a variable expense A) Utility bill. B) Rent. C) Grocery bill. D) Car loan. Show Answer Correct Answer: C) Grocery bill. 2. What is "Earned Income" ? A) A birthday gift. B) Winning the lottery. C) Unemployment compensation. D) Salary. Show Answer Correct Answer: D) Salary. 3. 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. 4. 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. 5. Which federal loans are available for parents to take out for their children's education? A) Perkins Loans. B) Direct PLUS Loans. C) Subsidized Direct Loans. D) Unsubsidized Direct Loans. Show Answer Correct Answer: B) Direct PLUS Loans. 6. 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) 3, 4. C) 2, 3. D) 1, 4. Show Answer Correct Answer: D) 1, 4. 7. 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 measurable. C) It is not realistic. D) It is not time-based. Show Answer Correct Answer: C) It is not realistic. 8. Aims to promote safe, regular and economical air transport, faster air commerce and study problems connected with the industry A) IATA. B) ICAO. C) PTTA. D) UNWTO. Show Answer Correct Answer: A) IATA. 9. Which of the following is known as something you own. A) Liabilities. B) Assets. C) Net worth. D) Gross income. Show Answer Correct Answer: B) Assets. 10. 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. 11. 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. 12. What does refinance mean? A) A home loan in which the interest rate changes depending on current rates in effort. B) To finance a home again with a new loan & a new interest rate. C) An estimate of the value of the property. D) A loan which uses the equity in your house to secure your loan. Show Answer Correct Answer: B) To finance a home again with a new loan & a new interest rate. 13. 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. 14. 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. 15. When assets are greater than liabilities, you are said to be A) Rich. B) Solvent. C) Insolvent. D) Credit worthy. Show Answer Correct Answer: B) Solvent. 16. 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. 17. Which of the following is the key to becoming financially secure for the average person? A) Making a large salary. B) Inheriting money. C) Working multiple jobs. D) Starting to save or invest at an early age. Show Answer Correct Answer: D) Starting to save or invest at an early age. 18. 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. 19. Also known as take home pay, this is the amount left after all payroll deductions have been taken from the gross income A) Gross pay. B) Withholdings. C) Net pay. D) Real pay. Show Answer Correct Answer: C) Net pay. 20. Planning on saving enough money to go on a nice vacation is an example of: A) Need. B) Investment. C) Financial Goal. D) Wealth. Show Answer Correct Answer: C) Financial Goal. ← 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