Money Matters Review for Exam

Tangible items that can be touched, used, and purchased are _____.

• services

• goods

• wants

• needs

What decision-making strategy weighs the costs against the benefits of an action, purchase, or financial decision?

• marginal analysis

• opportunity costs

• cost-benefit analysis

• common sense

What is the first step of systematic decision-making?

• Explore the alternatives.

• Evaluate the decisions.

• Define the decision to be made.

• Act on the decision.

Monthly rent payments are an example of a(n) ______ expense.

In a cash flow statement, what are expenses called?

• Cash Inflow

• Actual Inflow

• Cash Outflow

• Actual Outflow

Cash and savings that can be converted to cash quickly and easily are _____.

• current assets

• current liabilities

• fixed assets

• long-term liabilities

Obligations to be paid over a long period of time are _____.

• current assets

• current liabilities

• fixed assets

• long-term liabilities

Eligible workers who work more than _____ hours per week must receive overtime pay at least _____ times their regular hourly rate.

• 30, 2

• 35, 1.5

• 40, 1.5

• 40, 2

A(n) _____ is a report containing information used to calculate taxes owed by the taxpayer.

• tax return

• Form W-2

• audit

• Form W-4

What is the amount on which taxes are calculated?

• net pay

• gross income

• taxable income

• earned income