Answers26.27 TCEC FINANCIAL LITGross Pay vs. Net Pay

Topic Test Answers

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21
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A statement of an employee's biweekly earnings is given below. Earnings Deductions Week Ended Regular FED. SOC. MED STATEWITH. WITH. CARE. WITH. NET PAY 8/18 $_____ $62.00 $45.06 $10.54 $12.40 $596.80 What is the employee's gross pay?

A
$703.86
B
$714.40
C
$716.26
D
$726.80
22
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Allen bought 1,350 shares of stock for $12 per share. If he sold all his shares for $27,000, how much profit on each share did he make?

A
$6
B
$8
C
$10
D
$12
23

Gary earned a gross pay of $1,047.30 last week. Using the fact that Social Security tax is 6.2% of gross pay, determine the amount of Social Security tax deducted from Gary’s gross pay.

A
$6.49
B
$8.38
C
$64.93
D
$83.78
24

Lakisha’s employer pays $2,150 in health insurance and $86 in life insurance per year. She also gets $3,520 in paid time off per year. Her monthly gross pay is $4,370. What are Lakisha’s total job benefits per year?

A
$5,756
B
$10,126
C
$52,440
D
$58,196
25

Bob gets paid an annual salary of $30,000 and earns 5% commission on all sales he makes. If Bob wants to make $6,000 this month, how much in sales does he need to have?

A
$50,000
B
$70,000
C
$90,000
D
$120,000
26

Kai had a gross weekly paycheck of $616 last week. Kai worked 6 hours for 4 of the days and 8 hours on 1 day. What is Kai's hourly rate of pay?

A
$16.21
B
$19.25
C
$20.53
D
$25.67
27

Jennifer earns $17.35 per hour at her job. She works 6 hours per day, 5 days per week. What is Jennifer’s gross income for a 2 week pay period?

A
$520.50
B
$694.00
C
$867.50
D
$1,041.00
28

Elisha is a photographer and charges a set fee to photograph weddings. This is an example of _____ income.

A
capital gains
B
earned
C
hourly
D
passive
29

Use the following federal tax table for biweekly gross earnings of a single person to help answer the question below. Molly has biweekly gross earnings of $839.52. By claiming 1 more withholding allowance, Molly would have $16 more in her take home pay. How many withholding allowances does Molly currently claim?

Question illustration
A
1
B
2
C
3
D
4
30

Byron’s income last year was $61,700. He made $48,000 at his plumbing job and had income from an apartment that he rented out. If Byron earned the same amount of rent each month for the entire year, approximately how much per month did he collect?

A
$940
B
$1,140
C
$4,000
D
$5,140
31

Explain why you might not want to have passive income as your only source of income.

Answer:

Passive income can be unpredictable and may not be enough to cover regular expenses. Investments can lose value, rental properties can have vacancies or repair costs, and other passive-income sources may decrease. Having another source of income provides greater financial stability.

32

The total amount of deductions from an employee’s gross pay is $97.45. If the gross pay is $423.70, what percent of their gross pay is being withheld?

A
21%
B
22%
C
23%
D
24%
33

Choose the method of pay that would result in the most earnings for one month on sales of $40,000.

A
Straight commission of 7.5% on all sales.
B
Monthly salary of $1,600 plus 2.5% commission on all sales.
C
Graduated commission of 5% on the first $30,000 in sales and 6% on anything over that.
D
Graduated commission of 4% on the first $25,000 in sales and 8% on anything over that.
34

Choose the method of pay that would result in the most earnings for one month on sales of $73,620.

A
Straight commission of 6% on all sales.
B
Monthly salary of $3,000 plus 2% commission on all sales.
C
Graduated commission of 4% on the first $50,000 in sales and 9% on anything over that.
D
Graduated commission of 5% on the first $35,000 in sales and 7% on anything over that.
35

The following federal tax table is for biweekly earnings of a single person. How will the federal tax affect a biweekly pay of $740 for a single person claiming 1 exemption?

Question illustration
A
It increases the biweekly pay by $62.
B
It decreases the biweekly pay by $62.
C
It increases the biweekly pay by $65.
D
It decreases the biweekly pay by $65.
36

Which of the following companies offers the greatest total employment compensation? Company ACompany BCompany CCompany DGross Pay$41,600$40,800$41,300$42,000Paid insurance$1,800$2,400$2,000$2,100Paid time off$3,700$3,100$2,800$2,900Job expenses$2,000$1,800$800$2,500

A
Company A
B
Company B
C
Company C
D
Company D
37

Which of the following is an example of earning income from capital gains?

A
hourly employee earning $17 per hour
B
salaried employee earning $56,000 per year
C
selling stocks and making a profit of $3,000
D
buying a car for a total of $5,000
38

Trevor restores antique cars and sells them for profit. This is an example of _____ income.

A
capital gains
B
earned
C
hourly
D
passive
39

Raquel has gross pay of $732 and federal tax withholdings of $62. Determine Raquel’s net pay if she has the additional items withheld:Social Security tax that is 6.2% of her gross payMedicare tax that is 1.45% of her gross paystate tax that is 21% of her federal tax

A
$600.99
B
$610.54
C
$641.83
D
$662.99
40

Which of the following employees has the greatest total employee compensation?

A
Employee A: total job benefits $49,200 and total job expenses $300
B
Employee B: total job benefits $49,500 and total job expenses $500
C
Employee C: total job benefits $ 49,800 and total job expenses $700
D
Employee D: total job benefits $50,100 and total job expenses $900

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