Financial Literacy CH#2 TEST

10.   A dependent is a person who cannot be claimed on your tax return for an exemption.

26.   Programs that reimburse employees for education costs

15.   Form W-2 is used by employees to list their exemptions and determine tax withholdings from their paychecks.

   6.   Perks are benefits that have high monetary value to employees of large companies.

12.   Form 1040 is the short tax return form filed by most people.

   4.   A lifestyle business is one where the owner intends to keep the business small.

17. Most forms of unearned income and variable income are not taxable.

23.   A percentage of a sale paid to a salesperson is called a

35.   Which of the following payroll deductions is optional?

36.   Which of the following is a progressive tax?

Which form do workers have to complete so an employer can verify that they are eligible to work in the United States?

38.   Which of the following is not true about public goods?

21.  A simple federal tax return form designed for use by single and joint filers with no dependents is

34.   Social security tax:

   7.   Portable life insurance means you can take the policy with you when you leave your job.

   1. Some states have minimum wage laws that set a higher rate than the federal minimum wage rate.

39.   Which of the following is a disadvantage of owning a business?

22.   The overtime pay rate for hours worked above 40 hours in one week must be at least

40.   Which of the following is a type of unearned income?

27.   Workers’ compensation insurance

   4.   A lifestyle business is one where the owner intends to keep the business small.

28.   A dividend is

14.   The more exemptions a worker claims, the less tax is withheld from his or her paycheck.

11.   Medicare tax must be paid on all earnings by all employees.

   8. health flexible spending account allows employees to set aside money to pay for qualified medical expenses.

   2.   Salaried workers usually do not keep time cards or count hours worked.

   9.   The more you pay in taxes, the lower your disposable income.

   3.   Owning a small business involves hard work but very little risk.

29.   Money and benefits people receive from local, state, or federal governments are called

32.   Which of the following payroll deductions is required by law?

13.   Taxes and deductions for other items are subtracted from a worker’s gross pay to calculate net pay.

37.   Which of the following type of tax is based on assessed value?

24.   The amount left after all expenses are deducted from the revenues of a business is called

30.   Which of the following items is a type of in-kind transfer payment?

16.   Variable income refers to money received from some type of activity other than working as an employee.

18. Workers’ compensation is a form of in-cash payment.

24.   The amount left after all expenses are deducted from the revenues of a business is called