Retirement Plans
What type of retirement plan is offered by employers and often includes matching contributions?
A. Pension plan
B. 401K
C. Roth IRA
B. 401k
What are dividends?
A. Business payback for stockholders
B. Ratio between average daily moving volume and stock cost
C. Extra shares automatically given to investors whenever a company’s stock price increases
D. A fee investors must pay each year to continue owning a stock
A. Business payback for stockholders
What is a corporate tax?
A. A tax on personal income
B. A tax paid by businesses on their profits
C. A tax on home ownership
D. A tax on consumer purchases
B. A tax paid by businesses on their profits
This part of the equation represents what you own.
A. Liabilities
B. Assets
C. Equity
D. Taxes
B. Assets
What does CEO stand for?
A. Chief Executive Officer
B. Corporate Executive Organizer
C. Chief Economic Officer
A. Chief Executive Officer
You can open a 401k and a Roth IRA at the same time.
A. True
B. False
A. True
What is interest?
A. A government tax charged whenever you move money between bank accounts
B. The increase in value of an investment when its market price rises
C. The price of borrowing money
D. The total amount of money you repay on a loan, including the original amount borrowed
C. The price of borrowing money
Which type of tax is often included in the price of specific products like gasoline, alcohol, or tobacco?
A. Income tax
B. Property tax
C. Excise tax
D. Corporate tax
C. Excise tax
This part of the equation represents what you owe.
A. Assets
B. Income
C. Liabilities
D. Equity
C. Liabilities
If a company's expenses exceed revenues, what did the company just experience?
A. Profit
B. Loss
C. Investment
B. Loss
Say you opened a 401k...If you earn $40,000 a year and contribute 5%, how much did you contribute that year?
A. $2,000 per year
B. $200 per year
C. $4,000 per year
A. $2,000 per year
What is maturity date?
A. The date when an investment has earned the maximum possible profit and can no longer grow
B. The date when interest payments begin on a loan or bond
C. The date when a company becomes profitable for the first time
D. The date by or on which you can execute a derivative
D. The date by or on which you can execute a derivative
2. Which type of tax is taken directly from a person’s income?
A. Sales tax
B. Property tax
C. Income tax
D. Excise tax
C. Income tax
In the equation Assets = Liabilities + Equity, this term represents what is left after debts are paid.
A. Income
B. Assets
C. Equity
D. Taxes
C. Equity
What is the rise in average costs of goods/services over time?
A. Inflation
B. Deflation
C. Appreciation
A. Inflation
You earn $160,000 a year as a single filer. Even though you want to contribute to this retirement account, federal rules prevent you from doing so because your income exceeds the limit. What account is this?
A. Pension plan
B. 401K
C. Roth IRA
C. Roth IRA
What is obligation?
A. Bonus payments investors receive when a company performs well
B. A type of optional investment that a person can choose to ignore without consequences
C. The profit earned from selling an asset at a higher price than it was purchased for
D. The difference between futures and options
D. The difference between futures and options
Which of the following is an example of a public service supported by taxes? A. Private businesses
B. Schools and education
C. Personal savings accounts
D. Online shopping
B. Schools and education
If your assets are $12,000 and your liabilities are $7,000, what is your equity?
A. $5,000
B. $7,000
C. $12,000
D. $19,000
A. $5,000
You gave someone a note that is due in 2 years and accrues interest. What is the journal entry when that someone pays off the note?
A. Debit Cash; Credit Notes Receivable and Interest Revenue
B. Debit Notes Receivable; Credit Cash
C. Debit Interest Expense; Credit Cash
A. Debit Cash and Credit Notes Receivable & Interest Receivable
An individual under 50 contributes the maximum to both accounts in one year. This is the total amount they could contribute if they max out a 401(k) and a Roth IRA.
A. $31,600
B. $30,500
C. $31,500B. $30,500
What is strike price?
A. The price a stock must reach before it can be traded on the market
B. The name for the predetermined price of a derivative's underlying asset
C. The highest price a stock has reached in the past year
D. The penalty fee charged when an investor sells a stock too quickly
B. The name for the predetermined price of a derivative's underlying asset
Which program is funded by taxes to support retirees and seniors?
A. Student loans
B. Social Security and Medicare
C. Private insurance plans
D. Corporate investments
B. Social Security and Medicare
If liabilities increase but assets stay the same, what happens to equity?
A. It increases
B. It decreases
C. It stays the same
D. It becomes an asset
B. It decreases
What are the main skills needed to run a successful business?
A. Operations, leadership, analytics, and compliance
B. Strategy, entrepreneurship, and innovation management
C. Accounting, finance, management, marketing, and information systems
C. Accounting, finance, management, marketing, and information systems