PFM UNIT 1: INCOME AND CAREERS 2026
QUESTIONS AND CORRECT ANSWERS A+
STUDY GUIDE EXAM REVIEW AND
PRACTICE TEST
Adjusted gross income - CORRECT ANSWER-gross income less
adjustments like tuition costs
Itemized deductions - CORRECT ANSWER-expenses you can subtract
from adjusted gross income to determine your taxable income
Standard deduction - CORRECT ANSWER-a stated amount that you may
subtract from adjusted gross income instead of itemizing your deductions
Taxable income - CORRECT ANSWER-income on which tax must be paid
Tax credit - CORRECT ANSWER-an amount subtra Hard skills -
CORRECT ANSWER-technical expertise and knowledge to do a particular
task or job function
Soft skills - CORRECT ANSWER-social-emotional skills that influence
interactions between individuals
, Job analysis - CORRECT ANSWER-identifying the tasks, duties, and
responsibilities that make up a job and the knowledge, skills, and abilities
needed to perform the job
Salary - CORRECT ANSWER-annual income associated with a career that
is usually paid on a monthly basis
Benefits - CORRECT ANSWER-perks of employment like paid vacation
time, health insurance bonuses, or child care that are offered separately
from pay
Work characteristics - CORRECT ANSWER-daily activities at work, such
as indoor or outdoor work or working with people or alone
Entrepreneur - CORRECT ANSWER-a person who starts up and takes on
the risk of a business
Employee expenses - CORRECT ANSWER-costs associated with working
that must be paid by the employee, like parking or uniforms
Self-assessment inventory - CORRECT ANSWER-lists your strong and
weak points along with plans for improvement as you prepare for a career
Network - CORRECT ANSWER-informal groups of people with common
professional interests who interact for mutual assistance
QUESTIONS AND CORRECT ANSWERS A+
STUDY GUIDE EXAM REVIEW AND
PRACTICE TEST
Adjusted gross income - CORRECT ANSWER-gross income less
adjustments like tuition costs
Itemized deductions - CORRECT ANSWER-expenses you can subtract
from adjusted gross income to determine your taxable income
Standard deduction - CORRECT ANSWER-a stated amount that you may
subtract from adjusted gross income instead of itemizing your deductions
Taxable income - CORRECT ANSWER-income on which tax must be paid
Tax credit - CORRECT ANSWER-an amount subtra Hard skills -
CORRECT ANSWER-technical expertise and knowledge to do a particular
task or job function
Soft skills - CORRECT ANSWER-social-emotional skills that influence
interactions between individuals
, Job analysis - CORRECT ANSWER-identifying the tasks, duties, and
responsibilities that make up a job and the knowledge, skills, and abilities
needed to perform the job
Salary - CORRECT ANSWER-annual income associated with a career that
is usually paid on a monthly basis
Benefits - CORRECT ANSWER-perks of employment like paid vacation
time, health insurance bonuses, or child care that are offered separately
from pay
Work characteristics - CORRECT ANSWER-daily activities at work, such
as indoor or outdoor work or working with people or alone
Entrepreneur - CORRECT ANSWER-a person who starts up and takes on
the risk of a business
Employee expenses - CORRECT ANSWER-costs associated with working
that must be paid by the employee, like parking or uniforms
Self-assessment inventory - CORRECT ANSWER-lists your strong and
weak points along with plans for improvement as you prepare for a career
Network - CORRECT ANSWER-informal groups of people with common
professional interests who interact for mutual assistance
