Ficep Final Exam Study Guide With
100% Complete Solution
A tax is defined as a contribution that supports the _____
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of a government. - Correct Answer-operating costs
i i i i i i
A _____ tax requires a taxpayer to pay more tax as their in
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come increases. (Federal and state income taxes are ex
i i i i i i i i
amples) - Correct Answer-progressive i i i
A _____ tax charges the same percentage of the cost of a g
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ood or service, no matter what the taxpayer earns. (Sale
i i i i i i i i i
s tax, gas taxes, and liquor taxes are examples) -
i i i i i i i i i
Correct Answer-regressive
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Sometimes taxes are called _____. - Correct Answer- i i i i i i i
fees or surcharges i i
A _____ could include the cost of a driver's license or a hu
i i i i i i i i i i i i
nting license. - Correct Answer-fee i i i i
A _____ could be a gasoline tax, tobacco tax, or liquor tax.
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- Correct Answer-surcharge
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Taking care of _____ is as important for a member's finan
i i i i i i i i i i
cial well-being as it is to pay their bills on time. -
i i i i i i i i i i i
Correct Answer-tax obligations
i i i
Any _____ from the IRS should be reviewed and dealt wit
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h as soon as possible. - Correct Answer-
i i i i i i i
correspondence
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,If you have not been able to resolve a problem with the I
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RS, seek assistance from the _____. - Correct Answer-
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taxpayer advocate service. i i
Complex tax situations might require members to hire i i i i i i i i
a _____. - Correct Answer-tax professional
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_____
% of taxpayers may be eligible for free tax filing assistan
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ce. - Correct Answer-70
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If members get a large refund, they might want to chan
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ge their _____ if the money is needed in their monthly bu
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dget. - Correct Answer-filing status i i i i
Caution members that using refund anticipation loans i i i i i i i
can be a _____ way to get instant access to their refund. -
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Correct Answer-costly
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The first choice for using a tax refund is to _____. -
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Correct Answer-pay down debt
i i i i
Other tax authorities that members must pay attention
i i i i i i i i
to are state income tax, property tax, and _____. -
i i i i i i i i i
Correct Answer-self-employment quarterly taxes
i i i i
Examples of _____ are wages, salaries and tips, interest i i i i i i i i i i
ncome, alimony, business income, capital gains, pensi i i i i i i
ons and annuities, other forms of income, and distribut
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ions from a traditional IRA. - Correct Answer-
i i i i i i i
taxable income i
Examples of ____ are child support payments, life insur i i i i i i i i
ance benefits paid to a beneficiary, gifts and inheritanc
i i i i i i i i
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,es from parents, social security benefits, benefits from
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welfare, and qualified distributions from roth IRAs. - i i i i i i i
Correct Answer-non-taxable income
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_____ can make a difference in the taxes paid. -
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Correct Answer-filing status
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Examples of _____ are single, married filing jointly, mar i i i i i i i i
ried filing separately, head of household, and qualified
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widow or widower with dependent children. - i i i i i i
Correct Answer-filing status
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Saving for retirement can also save taxes by making co i i i i i i i i i
ntributions to a _____. - Correct Answer-401(k) plan i i i i i i i
If a person is in a 25% income bracket, they could save 2
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5% of the money they deposit into a _____. -
i i i i i i i i i
Correct Answer-traditional IRA
i i i
Financial counseling clients can manage some of the ri i i i i i i i i
sks in life by having the right types and amounts of _____
i i i i i i i i i i i
. - Correct Answer-insurance
i i i
An _____ in a car you financed at the credit union could b
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e held by both you and the credit union. -
i i i i i i i i i
Correct Answer-insurable interest
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You can make a better choice about insurance coverag
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e if you evaluate your _____. - Correct Answer-risks
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An _____ can give you protection if someone sues you for
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an accident on your property. - Correct Answer-
i i i i i i i
umbrella liability policy i i
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, _____ can help manage the costs of insurance. -
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Correct Answer-deductibles and policy limits
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_____ provides the right for an employee that is terminat
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ed or resigns to keep their medical insurance for 18 mo
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nths if they pay the cost (full amount of the premium). -
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Correct Answer-cobra
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Medicare _____ is free. - Correct Answer-part A i i i i i i i
Medicare _____ is paid for by the insured. - i i i i i i i i
Correct Answer-part B
i i i
Liability, personal injury or medical coverage, uninsur i i i i i i
ed or under-
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insured coverage, comprehensive, collision, and towin
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g and roadside assistance, and car rental coverage are t
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he seven types of _____ available to consumers. -
i i i i i i i i
Correct Answer-auto coverage
i i i
The rule of 72, or _____, shows how long it will take for a p
i i i i i i i i i i i i i i
erson's investment to double. (72 / i i i i i
current interest rate = number of year required to dou
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ble original investment) - Correct Answer-
i i i i i
compounding
_____ is the ability to convert an investment into cash. -
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Correct Answer-liquidity
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_____ are more liquid than diamonds and gold. -
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Correct Answer-share accounts
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_____ is the gain in value a person's investment earns. -
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Correct Answer-return
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100% Complete Solution
A tax is defined as a contribution that supports the _____
i i i i i i i i i i i
of a government. - Correct Answer-operating costs
i i i i i i
A _____ tax requires a taxpayer to pay more tax as their in
i i i i i i i i i i i i
come increases. (Federal and state income taxes are ex
i i i i i i i i
amples) - Correct Answer-progressive i i i
A _____ tax charges the same percentage of the cost of a g
i i i i i i i i i i i i
ood or service, no matter what the taxpayer earns. (Sale
i i i i i i i i i
s tax, gas taxes, and liquor taxes are examples) -
i i i i i i i i i
Correct Answer-regressive
i i
Sometimes taxes are called _____. - Correct Answer- i i i i i i i
fees or surcharges i i
A _____ could include the cost of a driver's license or a hu
i i i i i i i i i i i i
nting license. - Correct Answer-fee i i i i
A _____ could be a gasoline tax, tobacco tax, or liquor tax.
i i i i i i i i i i i
- Correct Answer-surcharge
i i i
Taking care of _____ is as important for a member's finan
i i i i i i i i i i
cial well-being as it is to pay their bills on time. -
i i i i i i i i i i i
Correct Answer-tax obligations
i i i
Any _____ from the IRS should be reviewed and dealt wit
i i i i i i i i i i
h as soon as possible. - Correct Answer-
i i i i i i i
correspondence
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Vendarsol
,If you have not been able to resolve a problem with the I
i i i i i i i i i i i i
RS, seek assistance from the _____. - Correct Answer-
i i i i i i i i
taxpayer advocate service. i i
Complex tax situations might require members to hire i i i i i i i i
a _____. - Correct Answer-tax professional
i i i i i
_____
% of taxpayers may be eligible for free tax filing assistan
i i i i i i i i i i
ce. - Correct Answer-70
i i i
If members get a large refund, they might want to chan
i i i i i i i i i i
ge their _____ if the money is needed in their monthly bu
i i i i i i i i i i i
dget. - Correct Answer-filing status i i i i
Caution members that using refund anticipation loans i i i i i i i
can be a _____ way to get instant access to their refund. -
i i i i i i i i i i i i
Correct Answer-costly
i i
The first choice for using a tax refund is to _____. -
i i i i i i i i i i i
Correct Answer-pay down debt
i i i i
Other tax authorities that members must pay attention
i i i i i i i i
to are state income tax, property tax, and _____. -
i i i i i i i i i
Correct Answer-self-employment quarterly taxes
i i i i
Examples of _____ are wages, salaries and tips, interest i i i i i i i i i i
ncome, alimony, business income, capital gains, pensi i i i i i i
ons and annuities, other forms of income, and distribut
i i i i i i i i
ions from a traditional IRA. - Correct Answer-
i i i i i i i
taxable income i
Examples of ____ are child support payments, life insur i i i i i i i i
ance benefits paid to a beneficiary, gifts and inheritanc
i i i i i i i i
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,es from parents, social security benefits, benefits from
i i i i i i i i
welfare, and qualified distributions from roth IRAs. - i i i i i i i
Correct Answer-non-taxable income
i i i
_____ can make a difference in the taxes paid. -
i i i i i i i i i
Correct Answer-filing status
i i i
Examples of _____ are single, married filing jointly, mar i i i i i i i i
ried filing separately, head of household, and qualified
i i i i i i i i
widow or widower with dependent children. - i i i i i i
Correct Answer-filing status
i i i
Saving for retirement can also save taxes by making co i i i i i i i i i
ntributions to a _____. - Correct Answer-401(k) plan i i i i i i i
If a person is in a 25% income bracket, they could save 2
i i i i i i i i i i i i
5% of the money they deposit into a _____. -
i i i i i i i i i
Correct Answer-traditional IRA
i i i
Financial counseling clients can manage some of the ri i i i i i i i i
sks in life by having the right types and amounts of _____
i i i i i i i i i i i
. - Correct Answer-insurance
i i i
An _____ in a car you financed at the credit union could b
i i i i i i i i i i i i
e held by both you and the credit union. -
i i i i i i i i i
Correct Answer-insurable interest
i i i
You can make a better choice about insurance coverag
i i i i i i i i
e if you evaluate your _____. - Correct Answer-risks
i i i i i i i i
An _____ can give you protection if someone sues you for
i i i i i i i i i i i
an accident on your property. - Correct Answer-
i i i i i i i
umbrella liability policy i i
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, _____ can help manage the costs of insurance. -
i i i i i i i i
Correct Answer-deductibles and policy limits
i i i i i
_____ provides the right for an employee that is terminat
i i i i i i i i i
ed or resigns to keep their medical insurance for 18 mo
i i i i i i i i i i
nths if they pay the cost (full amount of the premium). -
i i i i i i i i i i i
Correct Answer-cobra
i i
Medicare _____ is free. - Correct Answer-part A i i i i i i i
Medicare _____ is paid for by the insured. - i i i i i i i i
Correct Answer-part B
i i i
Liability, personal injury or medical coverage, uninsur i i i i i i
ed or under-
i i
insured coverage, comprehensive, collision, and towin
i i i i i
g and roadside assistance, and car rental coverage are t
i i i i i i i i i
he seven types of _____ available to consumers. -
i i i i i i i i
Correct Answer-auto coverage
i i i
The rule of 72, or _____, shows how long it will take for a p
i i i i i i i i i i i i i i
erson's investment to double. (72 / i i i i i
current interest rate = number of year required to dou
i i i i i i i i i i
ble original investment) - Correct Answer-
i i i i i
compounding
_____ is the ability to convert an investment into cash. -
i i i i i i i i i i
Correct Answer-liquidity
i i
_____ are more liquid than diamonds and gold. -
i i i i i i i i
Correct Answer-share accounts
i i i
_____ is the gain in value a person's investment earns. -
i i i i i i i i i i
Correct Answer-return
i i
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