Quiz 1 Financial

A tax audit is the total tax due divided by taxable income.

Surplus is the amount of which actual spending is less than planned spending.

The following are all personal financial statements EXCEPT:

A Budget is a specific plan for spending income; also called a spending plan.

What is the increase in an amount of money as a result of interest earned?

Taxes owed could be reduced by a tax credit.

Report that Sumsup your financial situation analyzes your finance needs & makes recommendations

What is the Future Value of $200 if you deposited it into a 5 percent account for 1 year?

The current value for a future amount based on a certain interest rate & a certain time period

Harrison has total assets of $150,000 and total liabilities of $60,000. What is her Net Worth?

Economics are the stages in the family situation and financial needs of an adult.

Total Tax Due divided by Taxable Income is Exemption.

What formula allows you to determine how much to deposit now to obtain a desired total later on

Jackson has total assets of $200,000 and total liabilities of $60,000. What is her Net Worth?

What is a tax levied on the value of property bequeathed by a deceased person?

Effective Financial Planning includes all steps EXCEPT:

Discretionary Income is the inflow of cash to an individual or a household.

The Basics of Federal Income Tax DOES NOT include:

How much interest would a person earn for $500 deposit at 6 percent for a period of 6 months?

Inflation is the DECREASE in the general level of prices.

A tax shelter is an investment that provides immediate tax benefits

Adjusted Gross Income is gross income after certain reduction have been made.

These are all the steps to creating a Cash Flow Statement EXCEPT:

Sean has a taxable income of $60,000 and a tax bill of $5,000. What is his average tax rate?

These are the different types of income EXCEPT:

Opportunity cost is what a person gives up by making a choice.

Long-Term Liabilities are debts that are required to be paid in 6 months.

Cash Flow is the actual inflow and outflow of cash during a given time period.

Jones has liabilities in the amount of $5,000 and a net worth of $20,000 What is his Debt Ratio