Princ of Bus Unit 5 Review

Question 1

Which is a type of earned income?

Accepted Answer

Salary

Question 2

What is a CD in banking?

Accepted Answer

Certificate of Deposit

Question 3

What is gross pay?

Accepted Answer

Total earnings before deductions

Question 4

Which is a type of unearned income?

Accepted Answer

Interest

Question 5

Businesses are legally required to document the wages and taxes of their employees.

Accepted Answer

True

Question 6

Which is a benefit of a savings account?

Accepted Answer

Interest earning

Question 7

True or false: Net pay is before deductions

Accepted Answer

False

Question 8

Companies can determine how often they pay bonuses.

Accepted Answer

True

Question 9

Should your budget be based on your gross pay or net pay?

Accepted Answer

Net pay because that is what you actually bring home.

Question 10

What is a key aspect of financial management?

Accepted Answer

Accurate documentation

Question 11

Those who work on commission do not necessarily get a base salary.

Accepted Answer

True

Question 12

What is a benefit of budgeting?

Accepted Answer

Financial goals achievement

Question 13

What is a pay stub?

Accepted Answer

A paycheck summary

Question 14

If April 15th falls on a Sunday, taxes are due that day.

Accepted Answer

False

Question 15

Which is a benefit of financial literacy?

Accepted Answer

Higher savings

Question 16

What happens to the federal tax payments taken out of an employee’s paycheck?

Accepted Answer

They are paid to the federal govt and credited toward the employee’s taxes.

Question 17

Which is a benefit of early financial education?

Accepted Answer

Good financial habits

Question 18

Which account type has limited access?

Accepted Answer

Savings

Question 19

What do standard deductions and tax credits have in common?

Accepted Answer

Both use amounts set by the government.

Question 20

Which is a feature of a money market account?

Accepted Answer

Higher minimum balance

Question 21

What is the 50/20/30 rule?

Accepted Answer

Needs/Savings/Wants

Question 22

Businesses are legally required to document the wages and taxes of their employees.

Accepted Answer

True

Question 23

What is the purpose of Social Security?

Accepted Answer

Retirement benefits

Question 24

What is the purpose of a budget?

Accepted Answer

To track expenses

Question 25

If you win the lottery, it is not taxed because it is unearned income.

Accepted Answer

False

Question 26

Which is a pre-tax deduction?

Accepted Answer

Health insurance

Question 27

What is a key component of a budget?

Accepted Answer

Expense tracking

Question 28

What is a tax credit?

Accepted Answer

Direct tax reduction

Question 29

Which one is not a common tax form?

Accepted Answer

W-3

Question 30

How does the IRS know how much an individual has earned?

Accepted Answer

It is documented on the W-2.

Question 31

Who fills out a W-4 and why?

Accepted Answer

You do to identify the number of dependents.

Question 32

Which is a method to increase savings?

Accepted Answer

Track expenses

Question 33

FICA deductions costs are paid by both the employee and employer.

Accepted Answer

True

Question 34

What is the purpose of a retirement account?

Accepted Answer

Long-term savings

Question 35

If an employer offers to hire you but says that you will have to start at a lesser training wage is this legal

Accepted Answer

No, hiring anyone for less than minimum wage is illegal.

Question 36

Which is a feature of a checking account?

Accepted Answer

Debit card

Question 37

Which deduction is mandatory?

Accepted Answer

Federal income tax

Princ of Bus Unit 5 Review

Questions 37

Princ of Bus Unit 5 Review

Questions 37