Assignment:
1. A personal balance sheet presents:
a. Amounts budgeted for spending
b. Income and expenses for a period of time
c. Earnings on savings and investments
d. Items owned and amounts owed
e. Family financial goals
2. Which one of the following items is a set amount of income on which no taxes are paid?
a. Itemized deductions
b. Standard deduction
c. Earned tax credit
d. Withholding
e. Capital gains
3. The form 1040 is most helpful to a person who:
a. Is single with no other exemptions
b. Makes less than $50,000 with no interest or dividends
c. Itemizes deductions
d. Has exempt income
e. Has a simple tax situation
4. Which type of audit is the least complicated for taxpayers?
a. A field audit
b. An office audit
c. A research audit
d. A correspondence audit
e. A documentation audit
5. A $2,000 deposit to a tax-deferred retirement account for a person in a 25 percent tax bracket would result in a reduced tax bill of:
a. $2,000
b. $1,50
c. $1,200
d. $500
e. $300