This quiz works best with JavaScript enabled. Home > Taxation > Income Tax Planning > Income Tax Planning – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Income Tax Planning Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How do long-term goals differ from short-term goals? A) Long-term goals require more money than short-term goals. B) Long-term goals require more preparation than short-term goals. C) Long-term goals are less attainable than short-term goals. D) Long-term goals take longer to plan than short-term goals. Show Answer Correct Answer: B) Long-term goals require more preparation than short-term goals. 2. Which of the following is known as expenses that are not absolutely necessary? A) Gross. B) Net. C) Discretionary. D) Credentials. Show Answer Correct Answer: C) Discretionary. 3. When should you fill out a W-4? A) When you quit a job. B) When you have 401K benefits. C) When you start a new job. D) Whenever you feel like it. Show Answer Correct Answer: C) When you start a new job. 4. Something of value exchanged for something else of value is called A) Contration. B) Negotiable. C) Warranty. D) Consideration. Show Answer Correct Answer: D) Consideration. 5. The cost of owning a car includes A) Insurance. B) Repairs. C) Gas. D) All of these. Show Answer Correct Answer: D) All of these. 6. ..... are items such as utilities, rent, and food-items that one can't do without. A) Needs. B) Wants. C) Risks. D) Assets. Show Answer Correct Answer: A) Needs. 7. An individual or firm that advises clients on investment matters on a professional basis. A) Investment Advisor. B) Insurance Agent. C) Financial Advisor. D) Banker. Show Answer Correct Answer: A) Investment Advisor. 8. Making plans which are permissible under various provisions of the law is considered as A) Purposive tax planning method. B) Permissive tax planning method. C) Short-term tax planning method. D) None of above. Show Answer Correct Answer: B) Permissive tax planning method. 9. Which of the following describe to put in long-term storage? A) Discretionary. B) Variable expense. C) Archive. D) Safe deposit box. Show Answer Correct Answer: C) Archive. 10. The IRS has the legal right to audit your tax returns and supporting records for ..... years from the date of filing A) 2. B) 4. C) 3. D) 10. Show Answer Correct Answer: C) 3. 11. This planning involves the accumulation and management of property during one's lifetime and the distribution of one's property at death. A) Tax. B) Pension. C) Estate. D) None of above. Show Answer Correct Answer: C) Estate. 12. What is your teacher name? A) Percilla Ross. B) Priscilla Ross. C) Priciella Ross. D) None of above. Show Answer Correct Answer: B) Priscilla Ross. 13. STATE which of the 6 steps to financial goal planning is represented in this scenario: "George is using the SMART Goals acronym to plan out the future." A) Determining Your Financial Situation. B) Developing Your Goals. C) Identifying Your Options. D) Evaluate Alternatives. E) Create and Use an Action Plan. Show Answer Correct Answer: E) Create and Use an Action Plan. 14. Which of these is an expense A) Part time job salary. B) Savings. C) Cost of daily lunch. D) Birthday check. Show Answer Correct Answer: C) Cost of daily lunch. 15. What is an example of liabilities? A) Credit card debt. B) Paycheck. C) Savings account. D) Paid off house. Show Answer Correct Answer: A) Credit card debt. 16. Which type of tax planning methods that is executed at the end of the year to reduce taxable income legally? A) Long-term tax planning. B) Permissive tax planning. C) Purposive tax planning. D) Short-term tax planning. Show Answer Correct Answer: D) Short-term tax planning. 17. Setting financial goals is the ..... step in creating and using a budget. A) First. B) Second. C) Third. D) Final. Show Answer Correct Answer: A) First. 18. A measurable savings goal spells out ..... A) How much money needs to be saved. B) What the money needs to be saved for. C) Why the money needs to be saved. D) When the money will be saved. Show Answer Correct Answer: A) How much money needs to be saved. 19. The risk that you have been tricked or deceived when making an investment is called A) Market price risk. B) Financial risk. C) Fraud risk. D) Inflation risk. Show Answer Correct Answer: C) Fraud risk. 20. The amount you place in an investment is called: A) Interest. B) Principal. C) Rate. D) Time. Show Answer Correct Answer: B) Principal. ← 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 7Income Tax Planning Quiz 8Income Tax Planning Quiz 9Income Tax Planning Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books