BUS 201 EXAM 1 QUESTIONS WITH ACCURATE
ANSWERS
2 Ways to Make Tax Payments: correct answer 1) Company Withholds Amt. They
Estimate (W2)
2) Individual Makes Estimated Pmts. Quarterly (1099)
3 Categories of Personal Financial Activities correct answer 1) Spending
2) Saving
3) Sharing
5 C's of Credit (Lenders Perspective) correct answer 1) Character: (Do you pay bills
on time)
2) Capacity: (Can you repay the loan)
3) Capital: (What are your assets/net worth)
4) Collateral: (What property can you pledge)
5) Conditions (What economic conditions might affect your ability to repay a loan)
5 Filing Categories correct answer 1) Single
2) Head of Household
3) Married Filing Joint
4) Married Filing Separately
5) Qualified Widow/Widower
A personal check with guaranteed payment is called: correct answer A Certified
Check
, Adjusted Gross Income (AGI) correct answer gross income reduced by certain
adjustments, such as contributions to an individual retirement account (IRA) and
alimony payments (Tax Deductions)
Advantages of Credit correct answer 1) Convenient & Immediate Access to Goods
2) Financial Emergency Preparedness
3) Safety
4) Easier to Return Merchandise
Annual Percentage Yield (APY/APR) correct answer (Amount Earned in 1 YEAR) /
Total Amount Paid
or
( (Amount Earned in 1 Period) / Total Paid ) x Number of Periods in 1 Year
Annuity correct answer A financial vehicle where there are constant streams of
money at regular intervals
Annuity Due correct answer Payments occur at the beginning of each period
Asset Management Accounts correct answer
Chapter 13 Bankruptcy correct answer A reorganization form of bankruptcy for
individuals that allows the debtors to keep their property and use their income to
pay a portion of their debts over three to five years
ANSWERS
2 Ways to Make Tax Payments: correct answer 1) Company Withholds Amt. They
Estimate (W2)
2) Individual Makes Estimated Pmts. Quarterly (1099)
3 Categories of Personal Financial Activities correct answer 1) Spending
2) Saving
3) Sharing
5 C's of Credit (Lenders Perspective) correct answer 1) Character: (Do you pay bills
on time)
2) Capacity: (Can you repay the loan)
3) Capital: (What are your assets/net worth)
4) Collateral: (What property can you pledge)
5) Conditions (What economic conditions might affect your ability to repay a loan)
5 Filing Categories correct answer 1) Single
2) Head of Household
3) Married Filing Joint
4) Married Filing Separately
5) Qualified Widow/Widower
A personal check with guaranteed payment is called: correct answer A Certified
Check
, Adjusted Gross Income (AGI) correct answer gross income reduced by certain
adjustments, such as contributions to an individual retirement account (IRA) and
alimony payments (Tax Deductions)
Advantages of Credit correct answer 1) Convenient & Immediate Access to Goods
2) Financial Emergency Preparedness
3) Safety
4) Easier to Return Merchandise
Annual Percentage Yield (APY/APR) correct answer (Amount Earned in 1 YEAR) /
Total Amount Paid
or
( (Amount Earned in 1 Period) / Total Paid ) x Number of Periods in 1 Year
Annuity correct answer A financial vehicle where there are constant streams of
money at regular intervals
Annuity Due correct answer Payments occur at the beginning of each period
Asset Management Accounts correct answer
Chapter 13 Bankruptcy correct answer A reorganization form of bankruptcy for
individuals that allows the debtors to keep their property and use their income to
pay a portion of their debts over three to five years
