Choosing a Career
Kshyra was contemplating her future finances after school. You remind her that __________ has the biggest impact on finances
A. The college you attend
B. Where you live
C. Your career choice
D. Your well-being
C. Your career choice
Gross income (pay) = Income before any deductions are taken out.
True
False
True
Which of the following is an indirect tax on specific goods and services?
A. Sales tax
B. Excise tax
C. Payroll tax
D. Property tax
B. Excise tax
If you have sufficient assets to pay down all of your debts you are said to be SOLVENT.
True
False
True
A(n) _____________________ records your “cashflow” (money “in” and “out”) over a past period of time.
A. Budget
B. Net Worth Statement
C. Paycheck stub
D. Income and Expense Statement
D. Income and Expense Statement
A budget is a document that summarizes
A. Past spending
B. Current Income
C. Future spending
D. Future income and spending
D. Future income and spending
Which of the following are good methods to discover your career?
A. Consider what you enjoy and what you are good at.
B. Consider jobs that allow you to do what you are good at.
C. Conduct informational interviews of careers you are interested in.
D. All of the above.
D. All of the above.
Which of the following is not a type of compensation?
A. Hourly wages
B. Bonuses
C. Retirement
D. Commissions
C. Retirement
The amount of income tax paid depends on
A. Filing Status
B. Exemptions
C. Adjustments to Income
D. All of the above
D. All of the above
Your net worth statement measures your _____________ based on _____________.
A. Assets and liabilities, a range in time (Jan 1- Jun 30, 2023)
B. Past cash flow, a range in time (Jan 1- Jun 30, 2022)
C. Assets and liabilities, a specific point in time (Dec 31, 2023)
D. Past cash flow, a specific point in time (Dec 31, 2022)
C. Assets and liabilities, a specific point in time (Dec 31, 2023)
A budget includes
A. Assets
B. Liabilities
C. Expenses
D. Value of personal items
C. Expenses
Your career choice should align with your
A. Course grades
B. Personality
C. Standardized test scores
D. Parents’ chosen career
B. Personality
What are the two taxes that your employer must match?
A. Social Security & Medicare
B. Federal Income Tax & State Income Tax
C. Social Security & Federal Income Tax
D. Medicare & Federal Income Tax
A. Social Security & Medicare
Which of the following would NOT be “unearned income?”
**Unearned income = no work involved
A. Wages
B. Dividends
C. Interest
D. Social Security
A. Wages
Which of the following is an example of a liability?
A. Mortgage
B. House
C. Checking account
D. 401k
A. Mortgage
What happens if your expenses are greater than your income on your budget?
A. You need to increase your expenses
B. You need to decrease your expenses
C. You need to decrease your income
D. You need to put the extra money into savings.
B. You need to decrease your expenses
Mikal earned $10/hour and worked 5 hours overtime for the week. What is his gross pay?
**40 hour standard work week
** Overtime = time and a half
A. $100
B. $800
C. $900
D. $475
D. $475
Janelle's current job pays her wages and tips. These are both examples of
A. Expenses
B. Earned Income
C. Unearned Income
D. Liabilities
B. Earned Income
If you want to buy a vehicle and take $5,000 from your savings account and purchase a $20,000 vehicle (financing the difference), how will your assets on net worth statement change?
A. Decrease $5,000
B. No Change
C. Increase $15,000
D. Increase $20,000
C. Increase $15,000
The first step in the budgeting process is to?
A. Choose an appropriate app right away
B. Set goals and determine what is most important to you
C. Cut all expenses by at least half
D. Get a second job to supplement your income
B. Set goals and determine what is most important to you
Which of the following is NOT a mandatory deduction from your pay?
A. Federal Income Tax
B. Unemployment
C. Social Security
D. Medicare
B. Unemployment
Sales Tax is WHICH type of tax?
A. Consumption Tax
B. Inheritance Tax
C. Property Tax
D. Excise Tax
E. All of the above
F. NONE of the above
A. Consumption Tax
If your net worth is $45,000 and you pay off your student loan from your savings account, how will your net worth statement be affected?
A. Your assets and liabilities will go down. Your net worth won’t change.
B. Your assets and liabilities will go down. Your net worth will increase.
C. Your assets will go up and your liabilities will go down. Your net worth will increase.
D. Your assets, liabilities, and overall net worth won’t change.
A. Your assets and liabilities will go down. Your net worth won’t change.
A plan that estimates your income and expenses over a period of time is called a ________.
Budget