Chapter 1-6 test review
Tax credit reduces your?
Tax Liability
A debt safety ratio of 15% would generally be a signal of financial trouble ahead
False
A home and land should be recorded on the personal balance sheet at their original cost
False
A saving account may be useful tool in managing everyday household transactions
False
Credit reports on individual borrowers are issued by credit card issuers
False
Income shifting refers to the process of transferring income form the taxpayer to the IRS
False
Interest you earned on your saving account would be an item listed on your personal balance sheet.
False
Marginal tax and average tax rate refer to the same thing
False
Tax avoidance is illegal, tax evasion is illegal
False
The Internal Revenue Service is responsible for making changes to the federal income tax codes
False
There is no limit on the amount of social security tax withheld annually.
False
When the income and expense statement indicates a cash surplus, this may be used to increase net worth by increasing assets or decreasing liabilities.
True
Dividends received from the stock you own will be taxable income
True
Most credit unions provide their members with deposit insurance
True
Negative amortization is possible with an adjustable rate mortgage.
True
Jon Anderson deposited $10,000 in a CD for 3 years at 5%. It should now be worth?
$11,576
Mandy and Jeff have a net worth of $25,000 and total assets of $140,000. what are their total liabilities?
$115,000
A deposit of $6000 saved in a CD for 10 years at 3% compounding annually will be worth?
$8,064
You made an error when you filed your tax return last year. You can correct error by filing Form
1040X
You have no employer provided pension plan; your IRA contributions are treated as
An adjustable to gross income
You would typically not include ____ in your gross income.
Life insurance death benefit payments
Which of the following is true regarding auto loans?
Longer term, Higher rate, Lower payment
In which of the following situations would you have pay additional money when returning a vehicle using a closed-end lease
Mileage limits were exceeded
A check you wrote to buy shoes last week has not yet been processed by the bank. It is said to be in?
Outstanding
____ can be deducted on your federal tax return
Property Tax
_____ would not be listed as a liability on your personal balance sheet
Savings Account
Molly and Jason were married. Their only dependent was Spot, their black standard poodle. Jason died in 2013. Assuming Molly does not remarry, in 2014 the only legal filing status for Molly will be:
Single
Budgets are
forward-looking
