Devry BUSN380 Week 2 Quiz Latest 2016 Jan. 1. Question : (TCO 2) This type of tax is calculated base

Devry BUSN380 Week 2
Quiz Latest 2016 Jan.

1. Question : (TCO 2) This type of tax is calculated based upon the
value of land and buildings.

Personal

Real estate

Direct

Proportional

Regressive

Question 2. Question
: (TCO 2) Interest earnings of
$2,400 from a taxable investment for a person in a 28% tax bracket would result
in after-tax earnings of

$672.

$1,728.

$2,400.

$3,333.

$8,571.

Question 3. Question
: (TCO 2) _____ can reduce
taxable income.

Portfolio income

Tax credits

Exclusions

Passive income

Earned income

Question 4. Question
: (TCO 2) You have invested in
the stock market and receive dividends. The dividend income must be reported as
_____ income.

passive

earned

investment

capital gain

excluded

Question 5. Question
: (TCO 2) George Washburn had
earnings from his salary of $44,000, interest on savings of $800, a
contribution to a traditional individual retirement account of $2,000, and
dividends from mutual funds of $600. George’s adjusted income (AGI) would be

$43,400.

$44,000.

$45,400.

$42,000.

$42,800.

Question 6. Question
: (TCO 2) _____ can be
calculated as a result of various items being subtracted from gross income,
such as individual retirement account contributions and alimony payments.

Adjusted gross income

Taxable income

Earned income

Passive income

Total exclusions

Question 7. Question
: (TCO 2) Expenses that a
taxpayer is allowed to deduct from adjusted gross income are called _____.

exemptions

exclusions

itemized deductions

tax credits

passive income

Question 8. Question
: (TCO 2) Taxes owed can be
reduced through _____.

the standard deduction

a tax credit

an itemized deduction

an exclusion

an exemption

Question 9. Question
: (TCO 2) In order for a
dependent to qualify as an exemption, he or she must

be married.

receive more than one half of his or her
support from the taxpayer.

be under age 16.

be registered in school.

be a relative.

Question 10. Question
: (TCO 2) People who _____ must
make estimated quarterly tax payments.

are employed in a foreign country.

receive dividends.

work for the government.

do not have adequate amounts withheld from
income.

Question 11. Question
: (TCO 2) A(n) _____ is an
all-purpose account that provides several services.

NOW account

asset management account

EFT account

mutual fund

money market account

Question 12. Question
: (TCO 2) An example of a _____
deposit is a checking account.

common

time

current

loan

demand

Question 13. Question
: (TCO 2) An example of a place
where one will encounter high fees for loans when borrowing money is a _____.

credit union

savings and loan association

pawnshop

commercial bank

mutual savings bank

Question 14. Question
: (TCO 2) _____ are the major
products offered by investment companies.

Interest-bearing checking accounts

Variable-rate loans

Credit card accounts

Savings bonds

Mutual funds

Question 15. Question
: (TCO 2) One of the
characteristics of a certificate of deposit is that it can have

high interest-rate risk.

low safety for savers.

limited liquidity.

a variable rate of return.

no minimum deposit amount.

Question 16. Question
: (TCO 2) On a savings account,
the rate of return can also be referred to as

liquidity.

compounding.

yield.

insolvency.

asset management.

Question 17. Question
: (TCO 2) A savings account in
which interest is compounded _____ would have the highest effective yield.

daily

annually

semiannually

monthly

weekly

Question 18. Question
: (TCO 2) At times, funds
deposited in an account may be restricted by_____.

a holding period

outstanding checks

interest earned

service charges

electronic banking

Question 19. Question
: (TCO 2) Service fees would be
_____ in the bank reconciliation process.

added to the bank statement balance

subtracted from the bank statement balance

added to the checkbook balance

subtracted from the checkbook balance

Question 20. Question
: (TCO 2) When an individual
borrows money to purchase a new home, he or she will be charged a _____.

prime rate

discount rate

mortgage rate

Treasury bond rate

corporate bond

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