Business and Finance Multiple Choice Test help


29 Questions

Unformatted Attachment Preview

Don't use plagiarized sources. Get Your Custom Essay on
Business and Finance Multiple Choice Test help
Just from $10/Page
Order Essay

Student Name: ______________________
9_12 Shared Courses BF05 – Personal Finance Test 2
2.00 Test
Date: ___________
1. To increase his net worth, Jackson could:
Increase his liabilities
Decrease his assets
C. Increase his market value
D. Increase his assets
2. Dane is researching the topic of property taxes for a presentation he is doing in his Personal Finance class.
He has come across the following statements he is considering adding to his presentation. Which should he
EXCLUDE from his presentation because it is not correct?
Property taxes are assessed at the same rate for all types of property, including homes, land and building,
regardless of location or whether they are used for business or personal use.
Property taxes are usually charged by state and local governments to pay for local schools and other
services and expenses incurred by these governments.
Property taxes are commonly paid on automobiles. This tax usually paid once per year when the
automobile is licensed.
D. Property tax on homes, land and buildings are usually only paid once or twice each year.
3. Which statement is NOT TRUE about property taxes?
Property tax is often charged by states or local governments to pay for local schools.
The property tax rate is set by the federal government to be equal in every state.
The fee paid to license a vehicle is an example of property tax.
D. Property taxes are most often paid only once or twice each year.
4. Erin and her mother are putting together an Income and Expense Statement for Erin to use as she applies
for a college scholarship. Which income source does she NOT need to include for this statement?
Interest earned on her savings account.
Money she received from her grandparents for her birthday.
Social Security income her mother is receiving for her since her father died of cancer last year.
D. Taxes she paid based on her income last year.
5. Which statement is TRUE about Payroll Taxes?
Payroll taxes are paid are paid on both earned and unearned income.
Payroll taxes fund different operations and programs of the federal government.
C. Payroll taxes fund the Social Security and Medicare programs.
The amount of tax paid depends on many different factors but increases as income increases.
6. Which of the following would most likely be considered a contractual expense?
Cell Phone
C. Entertainment
7. Samantha wants to be able to use funds in her checking account but finds going to the bank to withdraw cash
to be inconvenient. She would like a more effective way to access her checking account funds. What would
you suggest she do?
Apply for mobile banking. That way she can access her money with her smartphone to pay for the things
she needs. The amount she spends would automatically be deducted from her savings account.
Apply for a debit card. That way she can use the card instead of cash to purchase the things she needs and
the amount spent is immediately deducted from her account.
Apply for a credit card. That way she can use the card to purchase the things she needs and pay for it
when the credit card statement comes from her checking account.
Request a cashier’s check from her depository institution. That way she can spend money from her
checking account without risk of an overdraft fee.
8. Sanjay is concerned about the safety of the money in his savings account. Which type of depository
institution should he choose?
A commercial bank, since his deposits would be insured by the Federal Deposit Insurance Corporation
A credit union, since his deposits would be insured by the National Credit Union Association (NCUA)
He could safely choose either a commercial bank or a credit union, as long as his savings account balance
meets the insurance requirements.
Neither a commercial bank nor a credit union. Money is most safely kept at home in a personal safe or
9. Michael wants to develop a spending plan for himself to use during his final year of high school. What will
he need to do as his FIRST step?
Decide what income and spending categories would reflect his values, needs, and wants.
Decide how much money he can spend for each of the bills he pays each month.
Track his current income and expenses. If he has already created an Income and Expense Statement then
he has completed this step.
Develop a control system that will work with his life style.
10. Chase has decided to work with a spending plan so he can build up an emergency fund for when he is in
college. He learned in class that he could probably reduce his spending the most by looking at his
non-contractual expenses. Which of his expenses best fit that category?
Cell phone bill, gasoline, and car payment
Internet bill, entertainment, and clothing
motorcycle payment, food, and cell phone bill
D. Gasoline, food, and entertainment
11. Taxes that are charged on consumption items such as gasoline, hotel rooms, and airline tickets are called
which kind of taxes?
C. Federal use
D. property
12. Who is Medicare designed to help?
Low income families
Single parents
Senior Citizens
Children of unemployed parents
13. Brett is creating a Statement of Financial Position and needs to list his assets. Which of the following
should he NOT list as an asset?
Money in his checking account
Money in the paycheck he will receive next week
C. His hockey equipment
The market value of his car
14. If expenses were to exceed income on a spending plan, what would be a financially smart solution?
Decrease expenses
Use a credit card more often
C. Earn less income
D. Increase purchases
15. Savings tools offered by depository institutions may earn interest. Which of the following statements is
NOT TRUE about interest?
Interest is the price paid for using someone else’s money.
When earning interest, look for low rates.
C. When paying interest, look for low rates.
The amount of interest earned or paid is determined by the interest rate.
16. Maggie earns $62,000 per year and has a net worth of $20,000. Samantha earns $96,000 and has a net worth
of $15,000. Who is wealthier?
Maggie, because her income minus her net worth is a smaller amount than Samantha’s.
Samantha, because her income minus her net worth is a larger amount than Maggie’s.
C. Maggie, because her net worth is higher than Samantha’s.
Samantha, because her annual income is higher than Maggie’s.
17. Amanda and Marcus just finished their Income and Expense Statement for last month. They discovered that
they have a net gain. What does this mean and what should they do?
Amanda and Marcus are spending more money than they are earning. They need find a way to balance
their income and expenses by spending less on non-contractual expenses.
Amanda and March are earning more money than they are spending. They could place additional money
in savings and/or spend it on other expenses.
Amanda and Marcus are spending more money than they are earning. One of them should consider
getting a second job for a time to help boost their income.
Amanda and Marcus are earning more money than they are spending. They should increase spending for
non-contractual items to bring their income into balance with the expenses.
18. As Mariah was looking over her sales receipt for the shirt she bought at a retail store, she discovered that
she was charged 6% more than the price tag showed for the item. What is this extra 6% charge most likely
to be?
An excise tax on the shirt she purchased.
Property tax on the shirt she purchased.
C. Income tax on the shirt she purchased.
Sales tax on the shirt she purchased.
19. David made a mistake in his checking account recordkeeping and spent $10 more than he had deposited in
his account. As a result, he can expect to be charged a(n):
A. ATM Fee
Contact Fee
Safe Deposit Fee
Overdraft Fee
20. Ariel is saving money to purchase a new computer before she leaves for college in two years. She wants to
open a special account at a depository institution to keep her saved money safe. She has asked you for advice
on which type of account would be best for her. What would be the best advice for Ariel?
Check several depository institutions and choose one with a free, no-interest checking account. That way,
when Ariel has saved enough for her computer she can simply write a check to pay for it.
Shop around for the depository institution with the highest interest rates for their savings accounts. She
would be able to make regular savings deposits and earn interest while she is saving up for the computer.
Look for a Credit Union that offers share draft accounts. These secure accounts are designed especially
for saving for long-term financial goals.
Shop around for a depository institution that offers safe deposit boxes. These accounts offer extra
security for deposits and can be set up to allow her to withdraw her money when she needs it.
21. Since Taylor was a young child she has kept her savings in a piggy bank. She likes this method of saving
because she can have immediate access to the money if she needs it. Recently, in a class at school, discussion
focused on why depository institutions are safer than her piggy bank. Some students’ comments were based
on fact while others were based on myths. Which aspect of security at a depository institution is NOT
Depository institutions have insurance protection for up to $250,000 per depositor per account type so if
something happened to the money in the bank, you would get it back as long as the deposited amount was
no more than the insurance limit.
All money stored at a depository institution is kept safe at all times by numerous security measures.
C. Information about depositors and their accounts is kept in secure data storage.
Depository institutions have insurance protection. Depositors can have multiple accounts insured at the
same depository institution as long as each account has no more than 100000.
22. Austin has just received his first paycheck. He worked 22 hours at his new job and is being paid $8.00 per
hour. He calculated that his paycheck should be $176. His paycheck amount is almost 1/3 less than he
expected. What is the most likely reason that Austin’s pay is less than he expected it to be?
Austin calculated the hours he worked without deducting the hours he spent doing on-the-job training.
Austin neglected to deduct the excise tax paid on the uniforms he purchased to wear at his job.
C. Austin neglected to deduct the amount required to pay income and payroll taxes.
Austin’s employer made a mistake calculating the number of hours Austin worked during his first pay
23. When is your spending plan complete?
When you have allocated all your income into categories for the month.
When you have all of your current income and expenses recorded.
Spending plans are always under revision so they are never complete.
Spending plans are complete each December 31st as one year ends and another year begins.
24. Common fees that may be charged by a depository institution include all EXCEPT:
Overdraft fee
Late fee
C. ATM fee
D. Minimum Balance fee
25. A key difference between commercial banks and credit unions is that:
Commercial banks are ‘for-profit’ and credit unions are ‘not-for-profit’
Commercial banks typically pay higher interest rates than credit unions.
Credit unions are more commonly located in rural area while commercial banks are more commonly
located in urban areas.
Commercial banks offer more services, such debit cards, and online banking, than credit unions.
26. Diana and Aaron have decided to develop a spending plan to help them gain control over their finances.
Which of the following statements is NOT TRUE about spending plans?
Spending plans are used to record planned income.
Spending plans are used to record planned expenses.
C. A spending plan includes items NOT usually included when creating a budget.
D. When creating a pending plan, it is recommended that you examine your trade-offs and opportunity costs.
27. To calculate her net worth Jordyn should use the following formula:
Assets – liabilities = net worth
Assets x liabilities = net worth
C. Assets + liabilities = net worth
D. Assets / liabilities = net worth
28. Jonah is writing down his liabilities to complete his Statement of Financial Position. The item he should
include would be:
The market value of his car
The value of his retirement account
The combined total of his savings and checking accounts
The balance on his credit card
29. Andy is developing an Income and Expense Statement. He has gathered all his receipts, bank statements,
paycheck stubs, and spending records. He needs to categorize them into income and expenses. He is unsure
which of the following items should be recorded as expenses. Which should be recorded as expenses?
Taxes deducted from his paycheck, money saved from his paycheck for emergencies, and his car
Money saved from his paycheck for emergencies, interest paid on his car loan, his tax refund from filing
last year’s tax return
The scholarship he receives for studying Chinese at the local community college, his car insurance
payment, and stock dividends he received from his grandmother
Clothing he purchased for a job interview, tuition for a class he is taking at the local community college,
and interest from his savings account

Purchase answer to see full

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 30% with the discount code ESSAYSHELP