This quiz works best with JavaScript enabled. Home > Taxation > Income Tax Planning > Income Tax Planning – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Income Tax Planning Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Lara received $ 900 in one paycheck. If she follows the 50-30-20 method, how much money will she put toward her wants? 1. $ 900 2. $ 450 3. $ 270 4. $ 180 A) $ 900. B) $ 450. C) $ 270. D) $ 180. Show Answer Correct Answer: C) $ 270. 2. At what age are you required to begin taking distributions from your Roth IRA? A) 65. B) 59 1/2. C) 70 1/2. D) Never. Show Answer Correct Answer: D) Never. 3. This month Anthony's take-home pay was $ 1, 500. He also earned $ 20 interest on a savings account. He spent $ 250 for rent, $ 100 for groceries, and $ 300 for other expenses. Anthony's total cash inflows this month totaled A) $ 850. B) $ 870. C) $ 1, 500. D) $ 1, 520. Show Answer Correct Answer: D) $ 1, 520. 4. On taxes, this is an amount that reduces taxable income. A) Fixed. B) Exemptions. C) Liabilities. D) None of above. Show Answer Correct Answer: B) Exemptions. 5. A payee is A) The person who says they will pay a debt for someone else. B) The person who promises to pay the debt, loan or note. C) The co-signer. D) The person who write the loan. Show Answer Correct Answer: B) The person who promises to pay the debt, loan or note. 6. The employee knows exactly which day his/her paycheck will be deposited into their depository institution account. A) Paycheck with attached paycheck stub. B) Direct Deposit. C) Payroll Card. D) None of above. Show Answer Correct Answer: B) Direct Deposit. 7. A financial ..... is a report that summarizes your current financial condition and helps set a direction for your future financial activities. A) Plan. B) Budget. C) Statement. D) Record. Show Answer Correct Answer: A) Plan. 8. Financial needs and financial wants both A) Are needed to survive. B) Cost money. C) Are the same. D) None of the above. Show Answer Correct Answer: B) Cost money. 9. After Form P is completed, Form CP30 is issued. Once a partner receives Form CP30, they will declare the partnership income and loss that is stated on their Form CP30 onto their ..... A) CP500. B) Form B. C) Form P. D) Form BE. Show Answer Correct Answer: B) Form B. 10. Stafford loans, Perkins loans, and Plus loans are all ..... from the government. A) Alternative loans. B) Federal loans. C) Scholarships. D) Grants. Show Answer Correct Answer: B) Federal loans. 11. Which of the following is a fixed expense? A) Food. B) Utilities. C) Clothing. D) Rent. Show Answer Correct Answer: D) Rent. 12. For developing country especially, government usually perform a very ..... to get tourism started A) Passive. B) Active. C) Intermediate. D) None of above. Show Answer Correct Answer: B) Active. 13. These expenses are costs that occur on a regular basis. A) Variable. B) Fixed. C) Estate. D) None of above. Show Answer Correct Answer: B) Fixed. 14. Your birth certificate and Social Security card would likely be contained in which category of your financial records filing system? A) Money management records. B) Housing records. C) Personal records. D) Tax records. Show Answer Correct Answer: C) Personal records. 15. What is a cash surplus A) Credit card balance. B) When income exceeds expenses. C) When expenses exceeds income. D) When you are insolvent. Show Answer Correct Answer: B) When income exceeds expenses. 16. A legally enforceable agreement between two or more people is called a(n) A) Agreement. B) Promissory note. C) Contract. D) Consideration. Show Answer Correct Answer: C) Contract. 17. Which of the following is NOT an objective of tax planning? A) To minimize income. B) To reduce tax payable. C) To minimize tax litigation. D) To maximize relief. Show Answer Correct Answer: A) To minimize income. 18. A want is: A) Something essential for Living. B) An expense. C) Something important to an individual. D) Something someone would like to havebut does not need to live. Show Answer Correct Answer: D) Something someone would like to havebut does not need to live. 19. IRA's are A) Individual Retirement Accounts. B) Integrated Retirement Accounts. C) Inflation Resistant Accounts. D) . Individual Retirement Authorities. Show Answer Correct Answer: A) Individual Retirement Accounts. 20. When you make a loan payment, your A) Liabilities decrease. B) Net income increases. C) Cash outflows decrease. D) Net worth is unaffected. Show Answer Correct Answer: A) Liabilities decrease. ← PreviousNext →Related QuizzesTaxation QuizzesIncome Tax Planning Quiz 1Income 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 9Income Tax Planning Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books