Money Matters Study 1

chronological

A _________ resume presents a person's education, work experience, and other information in a reverse time-sequence

expenses exceeding income for a month

A decrease in net worth could be the result of what?

Allocating current resources for spending

A major activity in the planning component of financial planning is:

Reduced amounts owed to others

A person's net worth would increase as a result of what?

12.3

A taxpayer with a taxable income of $47,856 and a total tax bill of $5,889 would have an average tax rate of ___ percent.

cafeteria-style employee benefits

A type of employee benefits program that allows workers to base their job benefits on a credit system and personal needs

Other Income

Alex Bates goes on Jeopardy and earns $875,000 in winnings. What type of income is this?

Time comparing several brands of personal computers

An example of a personal opportunity cost would be

Subject to a fine and imprisonment

An unauthorized person who obtains a credit report under false pretenses may be what?

Obtaining

Attempts to increase income are part of the __________ component of financial planning

Increased use of computers in manufacturing

Example of an industrial trend that could affect the job market

Taxed at some future time

Federal tax-deferred employee benefits are:

home equity loan

For which of the following types of credit plans is the interest tax deductible?

A lower money supply

Higher interest rates can be caused by what?

the credit bureau must reinvestigate and modify or remove inaccurate data.

If there is incorrect information in your credit file

future value of a single amount

If you put $1,000 in a saving account and make no further deposits, what type of calculation would provide you with the value of the account in 20 years

$300

If your monthly net (after-tax) income is $1,500, what should be your maximum amount spent on credit payments?

80

In recent years, approximately what percent of new jobs in the U.S. economy occurred in companies with fewer than 100 employees

Schedule A

Itemized deductions are recorded on

$105,500

Jamie McFarland has determined that the value of her liquid assets is $4,500, the value of her real estate is $128,000, the value of her personal possessions is $62,000, and the value of her investment assets is $73,000. She has also determined the value of her current liabilities is $7,500 and the value of her long term liabilities is $98,000. What is the total value of her assets?

part-time employment

Jennifer Ryan wants to gain some employment experience so when she is ready to start a career she has something to offer a company. She has decided to work 20 hours a week for a local accounting firm answering the phone and assisting the partners in completing tax returns. Which of the following employment experience strategies is she pursuing?

25%

Joan Sanchez is single and earns $40,000 in taxable income. She uses the following tax rate schedule to calculate the taxes she owes. Up to $8,375-$34,000 10% $8,375-$34,000 15% $34,000-$82,400 25% $82,400-$171,850 28% What is Joan's marginal tax rate?

line of credit

Karen is notified by her credit card company that the credit limit on her credit card has just been increased to $10,000. This is one example of a change related to

Unmarried and have dependent children

The "head of household" filing status is for people who are what?

Interest-rate

The changing cost of money is referred to as ___________ risk

Calculated by dividing monthly debt payments (not including house payments) by net monthly income

The debt payments-to-income ratio is what?

Adult life cycle

The stages that an individual goes through based on age, financial needs, and family situation is called the

Estate

What type of tax is imposed on the value of an individual's property at the time of his or her death?

Fair Credit Reporting Act

Which federal law protects you by requiring credit bureaus to furnish correct and complete information to creditors?

Balance sheet and cash flow statement

Which of the following are considered to be personal financial statements?

-Birth certificate -Marriage license -Certificate of deposit -Social Security card

Which of the following is(are) typically considered to be a personal financial record

monthly balance due on a credit card

Which of the following would most likely be classified as current liability

dependent

Which of the following would qualify a person for an exemption when computing taxable income?

Present value of a series of deposits

Which type of computation would a person use to determine current value of a desired amount for the future

$2.5 million

With completion of a bachelor's degree one can expect to earn ________ in income over a 40-year period

is frequently the same as that of the other candidates

a common criticism of including a career objective on a resume is that it:

one page

for an entry-level position, a person's resume is likely to be:

reduce the number of applications for a job

the purpose of a screening interview is to:

Economics

the study of how wealth is created and distributed

tax-deferred benefit

what is a benefit on which you pay taxes at some future date?

$171,900 $850 + 1,200 + 98,000 + 12,000 + 3,300 + 12,500 + 5,500 + 38,550 = $171,900

Katherine Kocher has determined the following information about her own financial situation. Her checking account is worth $850 and her savings account is worth $1,200. She owns her own home that has a market value of $98,000. She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,300. She has a car worth $12,500. She has recently purchased a 2-year certificate of deposit worth $5,500 and she has a retirement account worth $38,550. What is the total value of her assets?

An opportunity cost

Kyle Burroughs has decided to put $25 more per week is his savings account. He knows this will reduce his ability to go out to eat each week but thinks building his savings is important. This would be an example of what?

Interview for specific positions and assess the interview performance

Kyle Burroughs has purchased a suit and has interviewed with three companies through the career placement center at his university. He was surprised by some of the questions asked and does not feel he answered them well. He has developed some answers that he feels are better answers and better reflects his abilities and aptitudes. Which step in the career planning process has Kyle completed?

exclusion

Maryellen Epplin worked in Poland for part of the year and earned $50,000 while she was there. This income will not be included in her taxable income for the year. This represents a tax

tax avoidance

Mr. and Mrs. Keating want to give their son Dudley a total of $24,000. They each write him a check for $12,000 so they won't have to pay any gift tax. This is an example of:

A liquid asset

Nick Boss has a savings account with $550 in it. He knows that he can withdraw this money whenever he wishes. This would be an example of:

credit card

Not included in the recent tax credits is a/an _______________ tax credit.

spending

One aspect of financial planning is to make wise decisions as to what to purchase and when to purchase it. Which aspect of financial planning does this deal with?

$162,000

Patricia McDonald has determined that the value of her liquid assets is $4,500, the value of her real estate is $128,000, the value of her personal possessions is $62,000, and the value of her investment assets is $73,000. She has also determined the value of her current liabilities is $7,500 and the value of her long term liabilities is $98,000. What is Patricia's net worth?

$2,800

Randal Ice is 57 years old, and has adjusted gross income of $32,000. He has medical expenses for the year of $6,000. How much of these expenses can he deduct from adjusted gross income?