This quiz works best with JavaScript enabled. Home > Taxation > Income Tax Planning > Income Tax Planning – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Income Tax Planning Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How does an increase in your income affect your tax liability? A) Your tax liability will decrease. B) Your tax liability will increase. C) Your tax liability will be annulled. D) Your tax liability will remain the same. Show Answer Correct Answer: B) Your tax liability will increase. 2. 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) Financial Plan. B) Budget. C) Wealth Management. D) Insurance Agent. Show Answer Correct Answer: C) Wealth Management. 3. Following are instruments used in Islamic estate planning, EXCEPT A) Will. B) Sedeqah. C) Matrimonial asset. D) Hibah. Show Answer Correct Answer: B) Sedeqah. 4. 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. 5. . Wages, salary, commission, fees, tips, and bonuses are A) Interest income. B) Tax-exempt income. C) Earned income. D) Tax-deferred income. Show Answer Correct Answer: C) Earned income. 6. The ..... you start saving, the ..... you will have to save each month to reach your retirement goals. A) Earlier, more. B) Less, more. C) Earlier, less. D) Later, less. Show Answer Correct Answer: C) Earlier, less. 7. What is another name for warranty A) Guarantee. B) Implied. C) Express. D) Limited. Show Answer Correct Answer: A) Guarantee. 8. What does it mean when a student loan is "forgiven" ? A) You get a letter of apology from the government. B) You don't have to keep going to classes to get your degree. C) You don't get as much money as your were previosuly promised. D) You don't have to pay back the remainder of your loan debt. Show Answer Correct Answer: D) You don't have to pay back the remainder of your loan debt. 9. Aims to establish coordination of national economies for the benefit of countries in the Asia-Pacific region A) OPEC. B) APEC. C) CPEC. D) CTEC. Show Answer Correct Answer: B) APEC. 10. What is a written promise to pay a certain sum of money to another person or to the holder of the note on a specified date A) Contract. B) Credit agreement. C) Promissory note. D) Title loan. Show Answer Correct Answer: C) Promissory note. 11. The following are the conditions for zakat on saving, EXCEPT A) Hawl is one year. B) Based on the beginning balance. C) Nisab 85 gram gold. D) Zakat rate 2.5%. Show Answer Correct Answer: B) Based on the beginning balance. 12. Why is buying a car considered "bad debt" ? A) It increases your net worth as it build equity. B) It gives you transportation to and from your job. C) It is worth more than any other investment. D) It decreases in value over time. Show Answer Correct Answer: D) It decreases in value over time. 13. A personal balance sheet would report all of the following EXCEPT A) Net income. B) Amount in your checking account. C) Value of your car. D) Home mortgage. Show Answer Correct Answer: A) Net income. 14. A person who is authorized by an insurance company to represent that company in its dealings with applicants for insurance. A) Insurance Agent. B) Wealth Mangement. C) Financial Advisor. D) Financial Planner. Show Answer Correct Answer: A) Insurance Agent. 15. Your net worth is A) The total value of your personal assets. B) The difference between your personal assets and your liabilities. C) The total amount of all of your investments. D) What you have left over in your paycheck each week after deductions are taken out. Show Answer Correct Answer: B) The difference between your personal assets and your liabilities. 16. What is the purpose of cash budget? A) Determine whether the firm is facing shortage or surplus of asset. B) Determine whether the firm is facing shortage or surplus of cash. C) To check whether the firm earn profit or get loss. D) None of above. Show Answer Correct Answer: B) Determine whether the firm is facing shortage or surplus of cash. 17. Which of the following can BEST help you develop budget categories and provide a basis for your budget? A) Paycheck stub. B) Balance sheet. C) Cash flow statement. D) Cost benefit analysis. Show Answer Correct Answer: C) Cash flow statement. 18. Your ..... income is the money you have left to spend or save after taxes and other deductions A) Gross income. B) Net income or disposable income. C) Loan payments. D) Social security. Show Answer Correct Answer: B) Net income or disposable income. 19. It is an attached agency of DOT which is primarily responsible for implementing an integrated domestic and international promotions and marketing program for the Philippines as a tourism destination as well as for tourism investments A) Tourism Promotions Board. B) Tourism and Travel. C) Tourism Industry. D) Tourism Policy. Show Answer Correct Answer: A) Tourism Promotions Board. 20. Paying down debts such as credit card balances is considered A) Part of your monthly needs. B) Part of your wants. C) Part of your savings strategy. D) Part of your investment plan. Show Answer Correct Answer: C) Part of your savings strategy. ← 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