Dave Ramsey - Ch. 11 Questions With
Correct Answers
/. Earned Income - Answer-Any income (wages/salary) that is generated by working.
/.Income Tax - Answer-Tax paid out by anyone who earns income.
/.Passive Income - Answer-Money earned on a regular basis with little or no effort
required to maintain it. (Real estate, intellectual property, business where owner is not
actively involved, etc.)
/.Personal Branding - Answer-The process by which we "market" ourselves to others;
involves highlighting personal strengths, interests, and unique qualities and identifying
goals.
/.Portfolio Income - Answer-Income generated by selling an investment at a higher price
than you paid for it.
/.Property Taxes - Answer-Taxes paid by anyone who owns property such as land, a
home, or commercial real estate.
/.Resume - Answer-A brief account of one's professional or work experience and
qualifications, often submitted with an employment application.
/.Sales Tax - Answer-Tax on goods and services that goes to your state or local
government.
/.Social Security - Answer-A federal insurance program funded by taxpayer dollars that
provides benefits to people who are retired, unemployed, or disabled.
/.W-2 (Wage and Tax Statement) - Answer-A form used to report wages paid to
employees and taxes withheld from them. Should be completed for each employee on
or before January 31 of each year.
/.1099 (MISC Statement for Recipients of Non-Employee Compensation) - Answer-
Used to report earnings of $600 or more paid per calendar year, for which no
withholding of social security taxes and income tax was made over the year.
/.1040 (A, EZ) - Answer-The starting form for personal income tax returns filed with the
IRS.
Correct Answers
/. Earned Income - Answer-Any income (wages/salary) that is generated by working.
/.Income Tax - Answer-Tax paid out by anyone who earns income.
/.Passive Income - Answer-Money earned on a regular basis with little or no effort
required to maintain it. (Real estate, intellectual property, business where owner is not
actively involved, etc.)
/.Personal Branding - Answer-The process by which we "market" ourselves to others;
involves highlighting personal strengths, interests, and unique qualities and identifying
goals.
/.Portfolio Income - Answer-Income generated by selling an investment at a higher price
than you paid for it.
/.Property Taxes - Answer-Taxes paid by anyone who owns property such as land, a
home, or commercial real estate.
/.Resume - Answer-A brief account of one's professional or work experience and
qualifications, often submitted with an employment application.
/.Sales Tax - Answer-Tax on goods and services that goes to your state or local
government.
/.Social Security - Answer-A federal insurance program funded by taxpayer dollars that
provides benefits to people who are retired, unemployed, or disabled.
/.W-2 (Wage and Tax Statement) - Answer-A form used to report wages paid to
employees and taxes withheld from them. Should be completed for each employee on
or before January 31 of each year.
/.1099 (MISC Statement for Recipients of Non-Employee Compensation) - Answer-
Used to report earnings of $600 or more paid per calendar year, for which no
withholding of social security taxes and income tax was made over the year.
/.1040 (A, EZ) - Answer-The starting form for personal income tax returns filed with the
IRS.
