Business Skills for Life Dr. Dillon

Most of the information in your credit file may be reported for only ___ years.

7

taxable income equation

= gross total income- total exemptions - total deductions

Which is true in Series EE U.S. Savings Bonds?

Federal income tax on earnings may be deferred until bonds are redeemed

_____ is a benefit on which you pay no income taxes.

a tax exempt benefit

Credit bureaus obtain data from which of the following?

banks finance companies credit card companies

__ is defined as a commitment to a profession that requires continued training.

career

Liquid assets refer to:

cash and items of value that can be easily converted to cash.

installment sales credit (down payment) installment cash credit (no down payment) single lump sum

closed-end credit

Which of the following is organized as a corporation and owned by stockholders?

commercial banks

A tax ___ is an amount substracted directly from the amount of taxes owed.

credit

Installment cash credit is a:

direct loan of money for personal purposes.

Present value calculations involve:

discounting

Which of the following is included in gross income?

earned income

types of income

earned income investment income passive income other income

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

estate

The rule of 78s formula dictates that you pay less interest at the beginning of a loan.

false

time values of money

future: compounding present: discounting

Which of the following goods or services is subject to an excise tax?

gasoline tax cigarettes

A personal cash flow statement presents ___.

income and payments

The time value of money refers to:

increases in amount of money as a result of interest earned

Evaluating the risk associated with making most financial decisions is difficult because of what?

inflation risk interest rate risk liquidity risk

An example of closed-end credit is ____.

installment sales credit

Which component of financial planning deals with buying stocks, real estate, and mutual funds?

investing

Money received in the form of dividends or interest is commonly called:

investment income

In Chapter 7 bankruptcy, the debtor:

is required to draw up a petition listing his or her assets and liabilities

What kind of audit requires a taxpayer to visit an IRS office to clarify some aspect of his or her tax return?

office audit

revolving credit line credit maxed credit cards

open end credit

Career choices require periodic evaluation of trade-offs related to which of the following?

personal factors social factors economic factors

Which of the following would be considered a fixed expense?

rent

The best way to maintain your credit standing is to:

repay your debts on time

The storage of funds for future use is a purpose of _____, which includes savings accounts and certificates of deposits.

time deposits

Opportunity cost refers to:

trade-offs associated with money management decisions

Itemized deductions are expenses that a taxpayer is allowed to deduct from adjusted gross income.

true

For 2021, single people received a standard deduction of:

$12,550