Multiple Choice
Identify the choice that best completes the
statement or answers the question.
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1.
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Max has just been hired for his first job after graduating college, and is
completing his hiring paperwork. He is excited about his new job because of the benefits it
will provide for him and his family. What form will Max use to declare the number of dependents
so his employer can withhold the correct amount of federal income tax from his pay?
a. | W-2 Form | c. | W-4 Form | b. | 1040EZ | d. | 1099 |
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2.
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Lacey worked 52 hours last week. Her hourly rate is $12.75 per hour. The
overtime rate is 1 ½ times the regular rate of pay. What is her total gross pay (regular pay
plus overtime pay)?
a. | $663.59 | c. | $892.50 | b. | $739.50 | d. | $994.00 |
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Use Melinda’s Budget to answer questions 3-6.
Melinda has
graduated from college and has her first job. She has created a budget to help organize her finances
and to begin to pay back her student loans. Melinda’s
Monthly Budget | Income | | $1,945.00 | Savings | $450.00 | | Expenses: | | | Apartment
Rent | $650.00 | | Cell Phone Bill | $65.00 | | Student Loans | $350.00 | | Gas | $756.00 | | Car Insurance | $50.00 | | Renter’s Insurance | $20.00 | | Groceries | $125.00 | | Personal Care/Laundry | $160.00 | | Total Expenses | | XXXX | Budget Balance |
| XXXX | | | |
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3.
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Melinda “pays herself first” each month. What does that mean?
a. | conscious effort to spend less each day | c. | a deduction taken
automatically out of your paycheck | b. | setting aside a
fixed amount for savings before paying bills | d. | decreasing savings to establish a sound
financial future |
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4.
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Which of the following of Melinda’s expenses would be classified as a
variable expense?
a. | apartment rent | c. | car payment | b. | grocery bills | d. | renter’s
insurance |
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5.
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Which of the following of Melinda’s expenses would be classified as a
fixed expense?
a. | apartment rent | c. | cell phone bill | b. | grocery bills | d. | gas purchases |
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6.
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What are Melinda’s total expenses for the
month? a. | $1,560.00 | c. | $2,176 | b. | $1,750.00 | d. | $2,626 |
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Use the scenario on Jodi to answer questions 7-9.
Jodi Jones is a
25-year-old accountant. Jodi’s dream is to retire by the time she is 55 years old and
travel. She has calculated that in order to retire early she will need to have $800,000 in assets.
Each year she prepares a Net Worth Statement to determine how she is progressing towards her
retirement goal. Answer the following questions using Jodi’s balance sheet.
Jodi’s Financial Records
as of June 30, 2017 | | Checking
Account | $9,800 | Savings Account | $20,000 | | Student Loans | $5,000 | House Loan | $85,000 | | Market Value of Car | $11,000 | Certificate of Deposit
(CD) | $30,000 | | Car loan | $4,000 | Credit Card
Debt | $3,000 | | Market Value of House | $150,000 | Retirement Account | $45,000 | | | | |
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7.
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Jodi would like to calculate her liabilities, so that she knows what she owes.
What is the amount of Jodi’s liabilities?
a. | $88,000 | c. | $97,000 | b. | $92,000 | d. | $127,000 |
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8.
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Jodi would like to calculate her assets so that she knows the value of her
assets. What is the amount of Jodi’s assets?
a. | $200,800 | c. | $236,000 | b. | $211,000 | d. | $265,800 |
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9.
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What is Jodi’s net worth?
a. | $97,000 | c. | $148,800 | b. | $137,000 | d. | $168,800 |
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