This quiz works best with JavaScript enabled. Home > Taxation > Income Tax Planning > Income Tax Planning – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Income Tax Planning Quiz 9 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Amounts owed to others is called what? A) Liabilities. B) Assets. C) Investment. D) None of above. Show Answer Correct Answer: A) Liabilities. 2. What is the greatest source of expenditure for the federal government? A) Defence. B) Health. C) Education. D) Social welfare. Show Answer Correct Answer: D) Social welfare. 3. In tax avoidance- A) Not obey legal provision. B) Avail benefit of loopholes. C) Misinterpretation of provisions. D) All the above. Show Answer Correct Answer: B) Avail benefit of loopholes. 4. An item of value pledged as a guarantee for payment of a loan which can be repossessed by the lender if the loan is not paid back. A) Collateral. B) Net worth. C) Asset. D) Collectible. Show Answer Correct Answer: A) Collateral. 5. Which of the following should not be paid for with an emergency savings fund? A) Replacing a broken down transmission in your car. B) Getting a regular oil change to keep your car running. C) Repairing your car after a fender bender. D) A down payment for a new car after your previous car was totaled. Show Answer Correct Answer: B) Getting a regular oil change to keep your car running. 6. STATE which of the 6 steps to financial goal planning is represented in this scenario: "Mary schedules a meeting with a financial adviser at E*Trade to discuss her portfolio." A) Determining Your Financial Situation. B) Developing Your Goals. C) Identifying Your Options. D) Evaluate Alternatives. E) Create and Use a Plan of Action. Show Answer Correct Answer: D) Evaluate Alternatives. 7. Three friends are all taking out loans. Essie is taking out student loans for college, Jalin is taking out a car loan for a new car, and Nicole is getting a mortgage to buy a house. Which of the friends are opening up good debt? A) Essie and Jalin. B) Jalin and Nicole. C) Essie and Nicole. D) Essie and Jalin. Show Answer Correct Answer: C) Essie and Nicole. 8. Cami Bartosz calculated that she owed taxes of $ 254 and had $ 278 withheld from her pay during the year. This would result in A) A refund of $ 278. B) A refund o $ 24. C) Additional taxes owed of $ 254. D) Additional taxes owed of $ 24. Show Answer Correct Answer: B) A refund o $ 24. 9. A computer program that organizes data in columns and rows and can perform calculations using the data is A) A database. B) A schedule. C) A spreadsheet. D) A calculator. Show Answer Correct Answer: C) A spreadsheet. 10. The idea that you should put money into a savings account as soon as you receive any income and before you pay any expenses or spend any money. A) Personal financial planning. B) Saving for a rainy day. C) Pay yourself first. D) Plan ahead. Show Answer Correct Answer: C) Pay yourself first. 11. This insurance provides cash payments for a limited time to individuals who are out of work for a reason other than illness. A) Disability income insurance. B) Survivors insurance. C) Unemployment insurance. D) Retirement insurance. Show Answer Correct Answer: C) Unemployment insurance. 12. Subject matter of Tax Planning is- A) Heads of Income. B) Deductions. C) Investment options. D) All the above. Show Answer Correct Answer: D) All the above. 13. Most people plan to work A) More years than they actually do. B) Until they are 60 years of age. C) Only until they qualify for their company retirement. D) Until they are fired or forced to retire. Show Answer Correct Answer: A) More years than they actually do. 14. Calculate the missing amount for C.Assets A) $ 33, 000. B) $ 62, 200. C) $ 73, 400. D) $ 20, 800. Show Answer Correct Answer: C) $ 73, 400. 15. In the 50-30-20 budgeting method, saving for emergency expenses would fall under which category? A) 50. B) 30. C) 20. D) None; it's part of pay yourself first. Show Answer Correct Answer: C) 20. 16. If you leave a company before the required minimum of years to retain your pension, what happens to the money? A) You receive 1/2 of it when you leave the company. B) You receive 1/3 of it when you leave the company. C) You receive all of the money and can roll it into your new retirement plan. D) You don't receive any of the money. Show Answer Correct Answer: D) You don't receive any of the money. 17. The loss of an asset's value over time is called A) Depreciation. B) Equalization. C) Amoritization. D) Normalization. Show Answer Correct Answer: A) Depreciation. 18. The two elements in budgeting and planning A) Income and net worth. B) Net worth and liabilities. C) Income and expenses. D) Expenses and assets. Show Answer Correct Answer: C) Income and expenses. 19. A list of all of a person's assets and liabilities at a specific point in time. A) Cash Flow. B) Balance Sheet. C) Asset. D) None of above. Show Answer Correct Answer: B) Balance Sheet. 20. If you have an IRA, you are required to start drawing income from it at age A) 50. B) 55. C) 591/2. D) 621/2. Show Answer Correct Answer: D) 621/2. ← 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 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books