Quarter 2

What is Gross Income?

• The amount you earn before taxes and other payroll deductions

• The amount you earn after taxes and other payroll deductions

• The amount you earn from investments

• The amount you earn from bonuses

What is Net Income?

• The total income before any deductions

• What a person earns after payroll taxes and other deductions are taken out

• The income from investments only

• The income before payroll taxes

What are Withholdings?

• The total salary before any deductions

• The portion of an employee’s pay held back to cover taxes and other deductions

• The bonuses received at the end of the year

• The amount saved for retirement

What is Earned Income?

• Income from investments

• Any income (wages/salary) generated by the work someone performs

• Income from rental properties

• Income from gifts

What is a Tax Return?

• A report a taxpayer submits annually to determine a person's tax liability

• A document showing monthly expenses

• A report on investment earnings

• A summary of annual savings

What is the purpose of an Audit?

• To increase the amount of tax owed

• To inspect a tax return to ensure income and deductions are accurate

• To provide a refund to the taxpayer

• To calculate future tax liabilities

What is a Capital Gains Tax?

• A tax on the positive difference between the sale price and the value of a gift when it was inherited

• A tax on the total income earned in a year

• A tax on the amount saved in a bank account

• A tax on the purchase of goods and services

What is an excise tax?

• A tax on income

• A tax on luxury goods

• A tax on property

• A tax on imports

What is revolving credit?

• A loan that is paid in installments

• Credit that automatically renews when a payment is made

• A one-time loan for a fixed amount

• A credit card with a fixed limit

What is collateral?

• A type of insurance

• A legal claim against an asset

• Something of value offered as security on a debt

• A loan with a fixed interest rate