Outline the personal economic cycle

1. (TCO 1) The stages that an individual goes through based on age, financial needs, and family situation is called the: (Points: 5)

financial planning process

budgeting procedure

personal economic cycle

adult life cycle

tax planning process

2. (TCO 1) A lack of willingness to accept a variety of employment positions is a common career planning mistake associated with weak: (Points: 5)

common sense.

communication.

training.

flexibility.

perseverance.

3.(TCO 1) The abilities to work well with numbers, possess problem-solving skills, and have physical dexterity are examples of: (Points: 5)

interests.

survival skills.

aptitudes.

occupational attitudes.

on-the-job training

4.(TCO 1) Which of the following situations is a person who could be insolvent? (Points: 5)

Assets $56,000; annual expenses $60,000

Assets $78,000; net worth $22,000

Liabilities $45,000; net worth $6,000

Assets $40,000; liabilities $45,000

Annual cash inflows $45,000; liabilities $50,000

5.(TCO 1) Payments that do not vary from month to month are ____________ expenses. (Points: 5)

fixed

current

variable

luxury

budgeted

6.(TCO 2) Reductions from gross income for such items as individual retirement account contributions and alimony payments will result in: (Points: 5)

adjusted gross income.

taxable income.

earned income.

passive income

total exclusions.

7.(TCO 2) Tax-deferred retirement plans are a type of: (Points: 5)

exemption.

itemized deduction

passive income

tax shelter

tax credit

8.(TCO 2) A deduction from adjusted gross income for yourself, your spouse, and qualified dependents is: (Points: 5)

the standard deduction

a tax credit

an itemized deduction

an exclusion

an exemption.

9.(TCO 2) A tax credit of $50 for a person in a 28 percent tax bracket would reduce a person’s taxes by: (Points: 5)

$10

$28

$14

$50

$35