Personal Finance Midterm Review
The right of a person hired first to be fired last is called ____. a. A work incentive c. Sick leave b. A fringe benefit d. Seniority
d
When minors (age 17 and younger) are working on the premises, working safety conditions must be equal to those provided for all other workers (age 18 and older).
f
A standard workweek is 40 hours in a five-day period of 8 hours each day.
t
An explanation of pay computations and deductions must be provided to an employee with each paycheck.
t
It is important to include on your resume activities, hobbies, or sports in which you have been active during school, because they indicate your interests and abilities.
t
It is usually a good idea to enclose a copy of your resume with your application letter.
t
Social security benefits include more than just retirement income.
t
The "ability-to-pay principle" is an accepted principle of tax fairness.
t
Age Discrimination in Employment Act prohibits discrimination in employment decisions against people age a. 65 and over c. 70 and over b. 40 and over d. 50 and over
b
An employee earns $580.00 for working 80 hours at minimum wage for a two week pay period. Federal and state income tax, social security, and Medicare totaling $51.62 are withheld from his pay. What is the employee's net pay? a. $631.62 c. $580.00 b. $528.38 d. $51.62
b
A common purpose for the net worth statement is a. fire-loss proof c. loan or credit application b. damage report d. employment application
c
As an alternative to itemizing deductions, taxpayers may a. file Form 1040EZ c. claim the standard deduction b. file Form 1040A d. claim more exemptions
c
If you are _________, the amount of your paycheck might change pay period to pay period. a. a retired employee c. a hourly wage employee b. a salaried employee d. a part-time employee
c
The way people choose to live their lives, based on the things they have decided are meaningful to them, is known as ____. a. Identity c. Lifestyle b. Values d. Central life activities
c
When attending a job interview, which of the following should you do? a. Take a friend c. Go alone b. Take a relative d. Take your teacher
c
When you don't know how much a flexible item will cost, you need to ________. a. get quotes for it c. estimate its cost b. leave it off your budget d. replace it with a fixed item
c
Cindy makes socks at the local mill. She is paid $.25 for every pair of socks she makes. If she makes 1,545 pair of socks, what is Cindy's gross pay? a. $1,158.75 c. $290.00 b. $38.63 d. $386.25
d
Savings, house payments, car loans, and utilities are all examples of ____. a. Variable expenses c. Personal records b. Disposable income d. Fixed expenses
d
The property tax is an example of which type of tax? a. Proportional c. Progressive b. Excise d. Regressive
a
Using the above chart, if an employee, with 3 allowances, earned $895 for the pay period, how much state income tax would be withheld? a. $29 c. $27 b. $30 d. $31
a
A company plan whereby employees receive a portion of the earnings of the company is called a. profit sharing c. sick pay b. leave of absence d. retirement plan
a
A net worth statement is most commonly used for which of the following? a. When applying for a loan or credit c. As proof of loss in case of fire or theft b. In the event of a tax audit d. In preparing budgets
a
A summary of information about you, including your education, skills, and experience, is called a(n) ____. a. Resume c. Employment interview b. Application letter d. Thank-you letter
a
An agreement entered into orally is a. enforceable c. void b. unenforceable d. voidable
a
An employee working overtime (more than 40 hours in a week) is paid _______ times their hourly wage. a. 1 1/2 c. 1 1/3 b. 1 3/4 d. 1 1/4
a
As taxable income increases, income tax rates ____. a. Increase c. Could go either way b. Stay the same d. Decrease
a
By what date must employers send a Wage and Tax Statement to all employees who worked for them in the past year? a. January 31 c. January 1 b. April 15 d. March 1
a
Communication among co-workers of equal rank or level is known as a. horizontal communication c. sideways communication b. downward communication d. vertical communication
a
Doing a budget does not: a. Make overspending more likely b. Show if you are overspending in an area c. Remove guilt and shame sometimes associated with a purchase d. Make your money go further
a
During a school week, a 14- and 15-year-old can work not more than _______ hours a week. a. 18 c. 9 b. 6 d. 3
a
If an employee earns an annual salary of 37,000, what is the bi-weekly gross pay. a. $1,423.07 c. $711.54 b. $3,083.33 d. $1,681.82
a
Most financial expert agree that families should set aside at least ________ percent of their disposable income each pay period. a. 10 c. 20 b. 15 d. 25
a
Net worth is calculated as a. income minus bills c. assets plus liabilities b. assets minus liabilities d. savings plus income
b
Which of these is a true statement about social security numbers? a. Only adults over age 18 can have a social security card. b. You can obtain a new social security number when you lose your old card. c. You will get one number for your lifetime. d. Two people can have the same number.
c
Which of these is an expense sometimes paid for by employees but not reimbursed by employers? a. Income taxes c. Uniforms and cleaning b. Profit-sharing plans d. Health insurance plans
c
Work rules can be a. written c. written and unwritten b. oral d. unwritten
c
Formal speaking is used only to persuade.
f
Which statement about money and financial goals is not true? a. When you set financial priorities, you focus on achieving the easiest goal first. b. Money is a limited resource. c. Setting financial goals helps you focus on how you want to use the money you have available. d. When you set financial goals, you show that you are responsible with money.
a
Which type of investment offers the most risk? a. stocks c. fixed income investments b. mutual funds d. bonds
a
You must file your federal income tax return no later than ____. a. April 15 c. December 31 b. January 31 d. January 1
a
"Staying on budget" means ________. a. having to earn exactly the amount you entered as income in your budget b. using your money according to your plan to achieve your financial goals c. needing to evaluate your budget to decide if the amounts are okay d. having to spend exactly the amount you entered as expenses
b
A 14- and 15-year-old can perform the following type of jobs except a. office worker c. retail store b. pizza delivery d. movies
b
A individual's tax liability (amount of taxes owed) is determine using a. Gross income c. Adjusted gross income b. Taxable income d. Net income
b
A sweatshirt is on sale at a local store. The original price is $42.99 and has been markdown 15%. What is the new price? a. 42.34 c. 38.69 b. 36.54 d. 6.45
b
A technique for training employees to be efficient in more than one specialized area is called a. core time period c. flextime b. job rotation d. job sharing
b
A term that best describes your gross pay after taxes are deducted is: a. net worth c. total revenues b. take-home pay d. assets
b
According to the U.S. Constitution, the power to tax rest with ____________. a. The President c. The House Ways and means Committee b. Congress d. The Senate
b
An employee works 56 hours for the week. The hourly rate is $10.80 per hour. What is the employee's gross pay? a. $777.60 c. $907.20 b. $691.20 d. $604.80
b
At the end of the month you subtract your actual expenses from your actual income. If the result is less than zero, what do you have? a. a missing entry c. a balanced budget b. a deficit d. a surplus
b
Based on how the W4 was completed, it can be determined that Joseph Robinson is a. married with one child c. single b. married with two children d. married with no child
b
Frankie's savings account has earned a lot of interest. He wants to know if he must pay taxes on the interest earned. What would the IRS tell him? a. Interest earned on savings accounts is not taxable c. A sales tax will be charged on the interest earned b. Savings account interest is taxable d. If the interest is under $50, it is not taxable
b
Imaad got a job after college and created a budget to manage his income and expenses. According to his budget, his net income is $3,100.00 per month and the variable expenses total $1,215.00. What is the amount of the fixed expenses? a. $1,215.00 c. $4,315.00 b. $1,885.00 d. $4,985.00
b
In regard to what to wear to a job interview, which of the following should you do? a. Wear a suit c. Buy new, expensive clothes b. Dress appropriately d. Wear your favorite T-shirt
b
Premiums for unemployment compensation are usually paid by ____. a. Employees c. Private health insurance companies b. Employers d. The government
b
Shown on your net worth statement are debts you owe to others, known as ____. a. Collateral c. Disposable income b. Liabilities d. Assets
b
Social security benefits include all but which of the following? a. Survivorship c. Retirement b. Loss of job through no fault of your own d. Disability
b
The IRS can audit your tax returns for a period of ________ year(s), except in the case of fraud, where there is no time limit. a. one c. six b. three d. ten
b
The Internal Revenue Service (IRS) is the federal government agency responsible for: a. Writing tax laws b. Tax collection and tax law enforcement c. Keeping the unemployment rate low d. Filling out your tax forms
b
The Wage and Hour Act established a minimum wage and the number of hours in a normal work week. When was the minimum wage established and what was the minimum wage? a. 1935 and $1.00 per hour c. 1930 and $0.25 per hour b. 1938 and $0.25 per hour d. 1935 and $0.50 per hour
b
The body of the application letter should do which of the following? a. Supply your address c. Contain a greeting followed by a colon b. Express your interest in the company d. Express your appreciation
b
The form used to determine the amount withheld from a paycheck for income taxes is the a. W2 c. FICA b. W4 d. 1009-INT
b
The government relies on taxes to: a. Remind citizens of the government's power b. Pay for services such as roads, education and social services c. Burden the public with an extra expense d. All of the above
b
The human behavior model called the hierarchy of needs was developed by ____. a. Gates c. Herzberg b. Maslow d. Freud
b
The original letter of reference you receive should be a. given to the employer c. destroyed b. photocopied to give to the employer d. attached to your resume
b
The part of a letter of application that contains the name and address of the person to whom you are writing is the ________. a. Return address c. Salutation b. Letter address d. Body
b
The process of perceiving sound is called a. listening c. understanding b. hearing d. communication
b
The sales tax is an example of which type of tax? a. Excise c. Progressive b. Regressive d. Proportional
b
The statement showing money withheld by an employer for income and social security taxes is ____. a. Form 1040X c. Form 1040 b. Form W-2 d. Form W-4
b
There are three purposes for formal speeches: to inform, to entertain, and to a. overcome c. wear down b. persuade d. direct
b
To obtain a work permit, which of the following is true? a. You must be an American citizen. c. You must have a job. b. You must provide proof of age. d. You must be at least age 16.
b
Using the Wage and Tax Statement, how much federal income tax was withheld? a. $464.37 c. $108.60 b. $524.29 d. $149.80
b
What is a type of IRS audit requiring a taxpayer to appear in person and bring records? a. correspondence c. field b. office d. research
b
What is the easiest income tax form to use? a. Form 1040A c. Form 1040 b. Form 1040EZ d. Form W-2
b
What's it called when you save money without having a specific purpose in mind? a. an ineffective savings goal c. a goal-driven savings goal b. an open-ended savings goal d. a purpose-driven savings goal
b
Which of the following is not a required deduction from an employee's gross pay? a. FICA (Social Security and Medicare) c. federal taxes b. 401(k) contribution d. state taxes
b
Which of the following is not considered a required deduction? a. federal income tax c. state tax b. savings deposits d. Social Security tax
b
Which of the following is the first step to take when you need to make a decision? a. Select the best option. c. Make a plan of action. b. Identify the decision to be made. d. Consider all the options.
b
Which of these is a liability? a. car c. stereo b. car loan d. savings account
b
Which of these is not an advanced degree? a. Doctor of philosophy c. Master's of business administration b. Bachelor's degree d. Doctor of veterinary medicine
b
Which of these is not an advanced degree? a. Doctor of philosophy c. Master's of business administration b. Bachelor's degree d. Doctor of veterinary medicine
b
Which statement about people who live "paycheck-to-paycheck" is true? a. They are willing to put their financial needs before their financial wants. b. They often have a lot of stress because they are always worrying about not having enough money. c. They do not have trouble earning enough to cover their bills. d. All of the above
b
Written _________ are provided in employee work areas to remind employees of policies that must be followed. a. laws c. guidelines b. work rules d. recommendations
b
You may claim exempt status on your Employee's Withholding Allowance Certificate if you meet the following criteria: under the age of 23; a full-time student, earn less than $10,150 for the year; and __________. a. have a work permit. c. be claimed as a dependent by someone else. b. receive tip as part of your compensation. d. be married.
c
________ is a tax used to fund the Social Security system. a. 403(b) c. FICA b. 401(k) d. FDIC
c
______________ means fairly, without emotion or prejudice. a. subjective c. objective b. indecisive d. decisive
c
A decision facilitated by a neutral third party is called a. lobbying c. collective bargaining b. seniority d. mediation
d
A man budgeted $200 a month for clothing. This month the man spent $150 on clothing therefore that budget item is considered to have a. a budget deficit c. an outflow deficit b. an income overage d. a budget variance
d
An employee works 56 hours for the week. The hourly rate is $8.65 per hour. What is the employee's gross pay? a. $726.60 c. $242.20 b. $484.40 d. $553.60
d
An examination of tax returns by the IRS is called ____. a. An itemization c. A tax bracket b. Tax evasion d. An audit
d
An individual will receive a Form W-2 from a. one employer only c. Federal government b. the Social Security Administration d. each employer for which an individual worked during the previous year
d
Expenditures that remain constant from one time period to another are: a. Current expenses c. Variable expenses b. Steady assets d. Fixed expenses
d
In a budget, snacks and entertainment are examples of which of the following? a. fixed expenses c. fixed income b. flexible income d. flexible expenses
d
Persons claimed on a Form W-4 that reduce the amount of tax withheld are called ____. a. Dependents c. Taxpayers b. Deductions d. Allowances
d
Property taxes are which kind of taxes? a. Graduated rate taxes c. Regressive taxes b. Progressive taxes d. Proportional taxes
d
Shown on your net worth statement are things of value that you own, known as ____. a. Liabilities c. Disposable income b. Collateral d. Assets
d
The Fair Labor Standards Act (FLSA) established a. regular work hours c. overtime pay b. minimum wage d. all of the above
d
The IRS form used to claim allowances for purposes of withholding is called the ____. a. Form 1040 c. Form W-2 b. Request for Statement of Earnings d. Form W-4
d
The price, which may be in the form of money, a promise, or a performed act, is known as a(n) a. offer c. competent party b. acceptance d. consideration
d
The sales tax is an example of which type of tax? a. Proportional c. Excise b. Progressive d. Regressive
d
The second step to making a decision is, "Consider all possible ________." (Hint: You usually have lots of them for each decision.) a. emotions c. goals b. influences d. options
d
The word "Sincerely" is part of the ____. a. Return address c. Body b. Salutation d. Complimentary close
d
To compute your tax liability, turn to the tax tables and look up the amount called a. take-home pay c. adjusted gross income b. gross income d. taxable income
d
Under the Family and Medical Leave Act (FMLA), an employee can take up to 12 weeks of unpaid leave in a 12-month period for certain medical and family situations. One of the valid circumstances under FMLA would be a. looking for a new house when transferring to a new location c. accompanying an immediate family member on vacation b. purchasing birthday/holiday presents. d. caring for new adopted child
d
What happens when you take control of your finances? a. You understand how to make sure you have enough money to pay for the things you want. b. Managing your money contributes to your overall well-being. c. You set financial goals and make healthy financial decisions. d. All of the above.
d
When a person is denied certain rights under employment laws, he or she should file a complaint with the ____. a. Internal Revenue Service c. Social Security Administration b. Attorney general d. Equal Employment Opportunity Commission
d
When deciding between two job offers with a similar salary offer, a person should first consider: a. Reputation of the organization c. Tuition reimbursement and bonus potential b. Travel time to the work location and the size of the organization d. Retirement and health plans
d
Which of the following is a disadvantage of e-mail? a. It is expensive. c. Messages can be sent to many people at once. b. It is fast. d. It results in a lack of privacy.
d
Which of the following is not a required employee deduction? a. Social security c. State taxes b. Federal taxes d. Overtime pay
d
Which of the following is not included on a pay stub? a. information about earnings c. information about deductions b. personal information about the employee d. medical information about the employee
d
Which of the following is the main purpose of the thank-you letter? a. Remind the employer of your poise and self-confidence b. Ask for another interview c. Show the employer you are anxious to get a job d. Remind the employer of your interest in the company
d
Which of the following is true about scannable resumes? a. They are designed for easy reading by a scanner. b. They contain key words from applicants' career fields. c. They avoid complicated formatting and fonts. d. All of the above are true.
d
Which of the following would not be a good reference on a resume? a. former teacher c. minister b. former employer d. uncle
d
Which of these is an example of what is usually an unwritten work rule? a. vacation policies c. Filing for workman's compensation b. Work hours d. Acceptable attire on casual Fridays
d
Which of these is not a government publication? a. Monthly Labor Review c. Occupational Outlook Handbook b. DOT d. Vocational Biographies
d
Why was the use of credit uncommon prior to 1917? a. Borrowing money was generally not socially acceptable. b. Laws prevented lenders from charging high interest rates. c. Lending money to others was not profitable. d. All of the above.
d
You want to gain control over your income and spending so that you will be able to save money. Which step will help you the most? a. Getting advice from a friend c. Developing a retirement plan b. Applying for a loan d. Developing a budget
d
Workers' compensation pays benefits to workers for job-related ____. a. Injury c. Death b. Illness d. All of these
d.All of these
A co-signer is responsible for your debts only if you miss three or more payments.
f
Federal tax is an optional deduction from your paycheck.
f
Hearing and listening are the same thing.
f
It is important that you list on your resume only jobs for which you were paid.
f
Joseph Robinson completed his W4 form correctly.
f
Most American today are wealthy and will have financial security when they retire.
f
Short-term goals are those you plan for the next few weeks or years.
f
Tax evasion is a minor offense without any penalties.
f
The Family and Medical Leave Act allows employees to take paid leave for family and medical reasons.
f
The best type of reference you can have is a family member or close relative.
f
The body of the application letter should be several pages long so that you can fully describe your qualifications.
f
The letter address contains the name and address of the writer.
f
When filling out an employment application, you should answer only the questions you feel are important in getting the job.
f
You can itemize deductions on Form 1040A.
f
The Federal Reserve is responsible for creating and tracking all of the money in the United States. t f
t
The amount left after all deductions have been subtracted from gross pay is known as net pay.
t
The body of the application letter should attract the employer's attention and state your interest in the company.
t
The largest source of government revenue is income taxes.
t
The main purpose of the thank-you letter is to remind the employer of your interest in and desire to work for the company.
t
The power to levy taxes rests with the Congress of the United States.
t
Unemployment compensation is available to you if you lose your job through no fault of your own.
t
You should ask permission before listing people as references on your resume.
t
Which of these is not required for a legally binding agreement? a. counteroffer c. consideration b. agreement d. capacity
a
The amount of your take-home pay is also known as ____. a. Required deductions c. Net pay b. Gross pay d. Optional deductions
c
The income tax is an example of which type of tax? a. Excise c. Progressive b. Regressive d. Proportional
c
The major function of labor unions is a. collecting dues c. collective bargaining b. conducting strikes d. having meetings
c
What is 34% of 1,764? a. 1,164.24 c. 599.76 b. 59.98 d. 1,704.02
c
When a person changes the terms of an offer, she/he has made a(n) a. agreement c. counteroffer b. acceptance d. exchange
c
When your assets are greater than your liabilities, you are said to be a. responsible c. solvent b. insolvent d. rich
c
Which of the following is not an income tax filing status? a. Single person c. Divorced person b. Married person filing joint return d. Head of household
c
Which of the following rates of absenteeism would be considered good? a. 3.46% c. 1.99% b. 6.54% d. 10.82%
c
Which of these is listed on Form W-2, Wage and Tax Statement? a. Your optional deductions c. Your social security number b. Regular and overtime wage rates d. Your net wages
c
Which of these provides in-depth job descriptions and information about job opportunities nationwide? a. DOT b. Monthly Labor Review c. Occupational Outlook Handbook d. Standard & Poor's Register of Corporations, Directors and Executives,United States and Canada
c
When scheduled for a job interview, you should arrive about _____________ minutes early. a. 10 c. 20 b. 15 d. 30 or more
a
When you ________, you take a portion of your savings and purchase a product such as stocks, bonds, or mutual funds. a. invest c. make a deposit b. earn interest d. open a savings account
a
Which of the following defines a budget? a. A plan to match expected income with expected outflow b. A plan to match spending with saving c. Something that will decrease your wants and needs d. A plan to increase income
a
Which of the following is an example of a variable expense in a budget. a. Entertainment c. Car insurance payment b. Rent d. Student Loan payment
a
Which of the following is not included on a pay stub? a. a blank endorsement or a restrictive endorsement b. information about earnings c. personal information about the employee d. information about deductions
a
Which of the following is not part of gross income? a. Child support c. Interest b. Dividends d. Tips
a
Which of these is not considered a job benefit? a. Salary c. Vacation time b. Health insurance d. Sick pay
a
Which of these is not one of the basic types of benefits paid under social security? a. Education benefits c. Health insurance benefits b. Survivor benefits d. Disability benefits
a
Mandi has completed most of her 1040 tax form. Her taxable income (Line 10) is $33,145.00, the taxes withheld (Line 16) is $4,189.00, and tax table amount (Line 11) is $4,505.00. Mandi should expect to a. owe $316.00 c. owe $4,505.00 b. receive a refund of $4,189.00 d. receive a refund of $316.00
a
Persons who are dependent on you for support and are claimed on your Form W-4 are known as a. allowances c. heirs b. free riders d. children
a
Technical courses for upgrading are often available through ____. a. Community colleges c. Career counselors b. Employment agencies d. Mail order
a
The Fair Labor Standards Act established ____. a. Minimum wage c. Regular rates of play b. The right to strike d. Weekend working hours
a
The day that income tax filings are due in the Commonwealth of Virginia: a. May 1 c. January 1 b. April 1 d. March 1
a
The following are examples of unwritten work rules except __________. a. no smoking c. loyalty b. punctuality d. courtesy
a
The part of an application letter that contains your complete mailing address and date is the ___________. a. Return address c. Salutation b. Letter address d. Body
a
What is the income upon which your tax is computed by using a tax table? a. Taxable income c. Net income b. Gross income d. Adjusted gross income
a
Workers compensation pays benefits for all but which of the following? a. Job-related death c. Job termination b. On-the-job injury d. Job-related illness
c
A company allowance for full-time employees whereby they are paid even though they are absent for a set number of days is called a. profit sharing c. sick pay b. leave of absence d. retirement plan
c
A individual aged 13 and under can work in the following jobs except a. babysitting c. amusement park b. delivering newspapers d. actor/performer
c
A worker is injured while performing his/her duties at work. The worker or his/her family can be paid benefits from _____________________. a. Unemployment Compensation c. Workers' Compensation b. Fair Labor Standards Act d. Family and Medical Leave Act
c
Based on the above pay stub, Hope's year-to-date amount withheld for Social Security is a. $660.92 c. $149.12 b. $76.58 d. $18.64
c
During a job interview, which of the following should you not do? a. Be courteous and enthusiastic c. Make negative comments b. Think before answering questions d. Emphasize your strong points
c
During a school week, how many hours a day can a 13-year-old work? a. 8 c. 3 b. 10 d. 6
c
For people who use Form 1040EZ or 1040A, the IRS allows a. electronic filing of tax returns c. both of these b. electronic payment of taxes due d. neither of these
c
If you are ________, the amount of your paycheck might change pay period to pay period. a. employed c. an hourly employee b. a salaried employee d. all of the above
c
Nonverbal Communication can affect how your message is understood. Which item below is not an example of nonverbal communication? a. rolling your eyes c. sending a text message b. nodding your head d. smiling
c
Persons 18 years of age or older who have known you for at least a year and can attest to your character are called ____. a. Friends c. References b. Former employers d. Interviewers
c
Purchases, savings, and charitable donations are included in which part of a budget? a. income c. expenses b. financial goals d. motivating factors
c
Savings are usually guaranteed by ________. a. the Securities and Exchange Commission c. the FDIC b. the IRS d. the Federal Reserve
c
The Federal Reserve is the ________ bank for the United States. a. commercial c. central b. investment d. online
c
