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