Make a Statement
How often should a person prepare financial statements?
At least once yearly
Give an example of a variable expense.
Medical expenses, clothing, groceries, etc.
Which is legal, tax avoidance or tax evasion?
Tax avoidance
Your take-home pay is what you are left with after subtracting withholdings from your what?
Gross Earnings
This is the financial statement that looks forward and is based on estimates.
What is the best/easiest way to balance your budget if you have shortages in a month?
Reduce expenses
If you do not wish to itemize your deductions, what is your other option?
Taking a standard deduction
What's the purpose of acquiring investment assets?
To earn a return
What are the three parts of a balance sheet?
Assets, liabilities, and net worth
How would you value your house on your balance sheet?
At fair market value
Where does the federal government receive the majority of its revenue from?
If your accountant completes your tax return and makes an error, who will be held responsible for the error?
You
This document is what helps in monitoring and controlling spending.
A budget
If you car has a fair market value of $5,000 and your loan balance is $1,000, what is your ownership interest in the car?
$4,000 or 80%
For how many months can a taxpayer file for an automatic extension to file their taxes?
6 months
When you sell a capital asset for more than the purchase price, what is the result?
Capital Gain
This financial statement measures financial performance over time.
Income and Expense Statement
What does it mean if your income and expense statements shows that you are solvent?
Your total assets exceed your total liabilities
What do we call it when the IRS attempts to verify the accuracy of a tax return?
If you make less than this amount in taxable income, the IRS will compute your taxes for you.
$100,000