This quiz works best with JavaScript enabled. Home > Taxation > Income Tax Planning > Income Tax Planning – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Income Tax Planning Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If you find that your budget is falling short each months, what smart actions could you take? A) Pick up extra shifts at work. B) Pay less on your cell phone bill. C) Put everything on a credit card and only pay the minimum amount due. D) Use emergency savings. Show Answer Correct Answer: A) Pick up extra shifts at work. 2. Money or debts you owe to others are called ..... A) Liabilities. B) Debts. C) Assets. D) Money. Show Answer Correct Answer: A) Liabilities. 3. A balance what is a record of assets and liabilities at a point in time. A) Sheet. B) Liabilities. C) Exemption. D) None of above. Show Answer Correct Answer: A) Sheet. 4. The potential risk that you will lose your money due to a company going bankrupt is called ..... risk. A) Market. B) Fraud. C) Corporate. D) Financial. Show Answer Correct Answer: D) Financial. 5. A ..... allows students to work on or off campus to earn money to help pay college costs. A) Scholarship. B) Grant. C) Federal work study. D) Federal loan. Show Answer Correct Answer: C) Federal work study. 6. This part of Social Security provides death benefits to dependents of workers who die. A) Survivors insurance. B) Retirement insurance. C) Disability insurance. D) Unemployment insurance. Show Answer Correct Answer: A) Survivors insurance. 7. How can buying a house be considered "good debt" ? A) It increases your net worth as it builds equity. B) It gives you a place to live for a long time. C) It is worth more than any other investment. D) It decreases in value over time. Show Answer Correct Answer: A) It increases your net worth as it builds equity. 8. If you have a retirement account, A) You can access the funds at any time, even though you pay a penalty to do so. B) You cannot access the funds until you officially retire. C) It is a good strategy to borrow frequently from it. D) Your opportunity cost for borrowing from it is very low. Show Answer Correct Answer: A) You can access the funds at any time, even though you pay a penalty to do so. 9. How many people are needed to have a contract A) 1. B) Minimum of 3. C) 2 or more. D) None of above. Show Answer Correct Answer: C) 2 or more. 10. In American society, which of these is an example of a want? A) Food. B) Shoes. C) Video games. D) Utility bills. Show Answer Correct Answer: C) Video games. 11. The amount of pay before all deductions refers to A) Net pay. B) Adjusted gross income. C) Gross pay. D) Exemption pay. Show Answer Correct Answer: C) Gross pay. 12. Which document is used as proof of identity? A) Cancelled check. B) Tax return. C) Insurance policy. D) Passport. Show Answer Correct Answer: D) Passport. 13. What is gross income? A) Income after taxes. B) Income before taxes. C) Income that is tax free. D) Income tax for the state. Show Answer Correct Answer: B) Income before taxes. 14. Neither discourage nor encourage tourism and adopts measures for the general development process such as on air traffic agreement and investment incentives. A) Active. B) Intermediate. C) Passive. D) None of above. Show Answer Correct Answer: C) Passive. 15. What is the maximum amount you are allowed to contribute to your IRA each year if you are 45 years old? A) $ 1000. B) $ 2500. C) $ 5000. D) $ 6000. Show Answer Correct Answer: C) $ 5000. 16. Which of the following is known as the total amount of money you expect to earn before taxes and deductions? A) Net worth. B) Discretionary income. C) Gross income. D) Balance sheet. Show Answer Correct Answer: C) Gross income. 17. A professional who analyzes a client's overall financial situation and develops a comprehensive plan that meets the client's goals and objectives. Special certifications are required in order to use the title of "financial planner." A) Insurance Agent. B) Financial Planner. C) Budget Analysis. D) Wealth Mangement. Show Answer Correct Answer: B) Financial Planner. 18. Spending for goods and services beyond the essentials like food, shelter, and clothing A) Discretionary spending. B) Disposable income. C) Unanticipated expense. D) Anticipated expense. Show Answer Correct Answer: A) Discretionary spending. 19. The following included in the scope of Tax Planning- A) Investment Planning. B) Financial Management Planning. C) Individual Tax Planning. D) All the Above. Show Answer Correct Answer: D) All the Above. 20. What are Social Security taxes used for? A) Building schools. B) Unemployment compensation. C) Income for retired and disabled people. D) Transfer payment. Show Answer Correct Answer: C) Income for retired and disabled people. ← 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 8Income Tax Planning Quiz 9Income Tax Planning Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books