FBLA Business Calculations UPDATED
Exam Questions and CORRECT Answers
exemptions - CORRECT ANSWER - a deduction from taxable income for each dependent
FUTA - CORRECT ANSWER - (Federal Unemployment Tax Act) tax authorizing the IRS
to collect a tax on each employer's payroll to fund state workforce agencies.
IRA - CORRECT ANSWER - (Individual Retirement Account) with some restrictions set
by the IRS, employed individuals can set aside pre-tax funds for their retirement years in a
traditional IRA or a Roth IRA.
itemized deductions - CORRECT ANSWER - amounts subtracted from adjusted gross
income become tax is computed.
property tax - CORRECT ANSWER - a tax imposed on a property owner to help fund
public services such as fire and police protection, schools, and parks.
SUTA - CORRECT ANSWER - (State Unemployment Tax Act) tax collected by state
governments to fund state workforce agencies, is used solely for the payment of benefits to
eligible unemployed workers.
taxable income - CORRECT ANSWER - the amount of income subject to tax after
adjustments, deductions, and exemptions..
total income - CORRECT ANSWER - all the income you receive.
automobile liability insurance - CORRECT ANSWER - Insurance that covers damages for
bodily injury & property damage for which an insured person becomes legally responisble
because of an auto accident.
, beneficary - CORRECT ANSWER - Person or persons designated to receive the proceeds
of a life insurance policy in the event of the insured's death.
collision coverage - CORRECT ANSWER - Pays for damage to the insured's vehicle as a
result of an accident.
comprehensive coverage - CORRECT ANSWER - Pays to fix an individuals vehicle less
any deductible not caused by an accident, such as vandalism, theft,storm, or fire.
deductible - CORRECT ANSWER - An amount deducted from an insurance settlement,the
amount of loss the insured agrees to accept.
face value - CORRECT ANSWER - The amount of insurance purchased.
hmo - CORRECT ANSWER - A managed health care organization which attempts to
lower costs by negotiating discounted rates for their policyholders.
liability - CORRECT ANSWER - An obligation for which someone is responsible.
life insurance - CORRECT ANSWER - An agreement providing for the payment of a
stipulated sum to one or more beneficiaries upon the death of the insured person.
POS - CORRECT ANSWER - A managed health care organization which attempts to
lower cost by negotiating discounted rates for their policyholders; focuses on preventive care.
PPO - CORRECT ANSWER - A managed health care organization which attempts to
lower cost by negotiating discounted rates for their policyholders. Differs from other
organizations in the amount of control plan members have in their choice of health care providers
and the cost of premiums, co-payments and deductibles.
Term - CORRECT ANSWER - The time for which an insurance policy is effect.
Exam Questions and CORRECT Answers
exemptions - CORRECT ANSWER - a deduction from taxable income for each dependent
FUTA - CORRECT ANSWER - (Federal Unemployment Tax Act) tax authorizing the IRS
to collect a tax on each employer's payroll to fund state workforce agencies.
IRA - CORRECT ANSWER - (Individual Retirement Account) with some restrictions set
by the IRS, employed individuals can set aside pre-tax funds for their retirement years in a
traditional IRA or a Roth IRA.
itemized deductions - CORRECT ANSWER - amounts subtracted from adjusted gross
income become tax is computed.
property tax - CORRECT ANSWER - a tax imposed on a property owner to help fund
public services such as fire and police protection, schools, and parks.
SUTA - CORRECT ANSWER - (State Unemployment Tax Act) tax collected by state
governments to fund state workforce agencies, is used solely for the payment of benefits to
eligible unemployed workers.
taxable income - CORRECT ANSWER - the amount of income subject to tax after
adjustments, deductions, and exemptions..
total income - CORRECT ANSWER - all the income you receive.
automobile liability insurance - CORRECT ANSWER - Insurance that covers damages for
bodily injury & property damage for which an insured person becomes legally responisble
because of an auto accident.
, beneficary - CORRECT ANSWER - Person or persons designated to receive the proceeds
of a life insurance policy in the event of the insured's death.
collision coverage - CORRECT ANSWER - Pays for damage to the insured's vehicle as a
result of an accident.
comprehensive coverage - CORRECT ANSWER - Pays to fix an individuals vehicle less
any deductible not caused by an accident, such as vandalism, theft,storm, or fire.
deductible - CORRECT ANSWER - An amount deducted from an insurance settlement,the
amount of loss the insured agrees to accept.
face value - CORRECT ANSWER - The amount of insurance purchased.
hmo - CORRECT ANSWER - A managed health care organization which attempts to
lower costs by negotiating discounted rates for their policyholders.
liability - CORRECT ANSWER - An obligation for which someone is responsible.
life insurance - CORRECT ANSWER - An agreement providing for the payment of a
stipulated sum to one or more beneficiaries upon the death of the insured person.
POS - CORRECT ANSWER - A managed health care organization which attempts to
lower cost by negotiating discounted rates for their policyholders; focuses on preventive care.
PPO - CORRECT ANSWER - A managed health care organization which attempts to
lower cost by negotiating discounted rates for their policyholders. Differs from other
organizations in the amount of control plan members have in their choice of health care providers
and the cost of premiums, co-payments and deductibles.
Term - CORRECT ANSWER - The time for which an insurance policy is effect.
