Practice Test Answers

Which is a monetary benefit in a compensation package?

What affects job availability?

What is the difference between a tax credit and a tax deduction?

Part A: A person has higher income but large fixed expenses. What happens?

Part B: Why?

Quincy listed his assets and liabilities. Cash Rent Stocks Jewelry Student Loan Utilities Which are Quincy’s assets? Choose three correct answers.

Part A: Which path typically leads to higher long-term earnings?

Part B: Why?

Bianca and Dave are a married couple filing a joint tax return. They have a combined gross income of $81,031 and claim four exemptions. They can make an adjustment of $2,914 for business expenses, an adjustment of $1,939 for business losses, a deduction of $4,140 for medical expenses, an adjustment of $4,825 for contributions to their retirement fund, and a deduction of $2,420 for charitable donations. If exemptions are worth $3,650 apiece and the standard deduction for a joint return is $8,350, what is their total taxable income?

What is an opportunity cost of education?

Which is a guaranteed benefit offered to salaried employees?

Part A: Why complete FAFSA early?

Part B: What can FAFSA unlock?

Part A: Why are education savings accounts useful?

Part B: What is a benefit?