business final Flashcards
(30 cards)
Many companies offer a service to electronically deposit an employee’s net pay into a
designated bank account. This service is known as __________.
A. Barter
B. Amortization
C. Automatic savings
D. Direct deposit
Direct deposit
Which of the following is NOT one of the three most common ways an employer may
handle paying their employees?
A. Paycheck with the paycheck stub
B. Personal check from the owner
C. Direct deposit
D. Payroll card
Personal check from the owner
Which of the following is TRUE about the Fair Labor Standards Act?
A. It is used by the federal government to set the federal minimum wage.
B. It requires all states to have the same minimum wage.
C. It sets a limit as to how much one person can earn per year.
D. None of the above
it used by the federal government to set the federal minimum wage
What is the purpose of the W-4 form?
A. It verifies an employee’s eligibility to work in the U.S.
B. It allows the employee to join a tax-deferred savings plan.
C. It determines how much of an employee’s paycheck will be withheld for
federal income taxes.
D. It informs the employeer which method of payment the employee prefers.
c. It determines how much of an employee’s paycheck will be withheld for
federal income taxes.
The current federal minimum wage is __________.
A. $8.00
B. $5.10
C. $7.25
D. $15.00
C.7.25
A newly hired employee will be asked to complete a __________.
A. Form W-4
B. Form W-2
C. Form 1040
D. Form 1040-EZ
A. Form w-4
The terms “job” and “career” are often used interchangeably; however, there is a major
difference in the meaning of the terms. A “career” is characterized as….
A. Responsibilities without risk because it involves different tasks
B. Responsibilities that result in earning income from an hourly wage
C. A profession or vocation requiring special education or training
D. Work that includes the benefit of short hours or little responsibility
A profession or vocation requiring special education or training
A statement that shows earnings and tax deductions withheld during the year is a
__________.
A. Form 1040
B. Form 1040A
C. Form W-2
D. VITA Program
Form W-2
Blue Diamond Co. attracts the best sales people because it offers a generous
commission structure, a well-rounded benefits package, flexible work hours, and
opportunities for professional development. Blue Diamond has….
A. Problems with its finances
B. A total rewards system
C. An unsustainable business model
D. Unethical hiring practices
B. A total rewards system
Which of the following forms of income would be considered unearned income?
A. Union strike benefits
B. A personal salary
C. Tips from waiting tables
D. Interest from a savings account
D. Interest from a savings account
Which of the following is NOT an example of earned income?
A. Wages
B. Dividends
C. Tips
D. Commissions
B. Dividends
Which of the following is the most common source of income for people aged 20-35?
A. Dividends
B. Wages/Salary
C. Rent
D. Mortgage payments
Wage/salary
Which of the following forms of income would be considered unearned income?
A. Self-employment earnings
B. Alimony payments
C. Performance bonus
D. Life insurance proceeds
D. Life insurance proceeds
Which of the following is a way for an employee to earn additional income?
A. Discuss their financial goals with their supervisor
B. Increase their budgeted monthly expenses
C. Increase their job knowledge or improve their skills
D. Volunteer at a successful corporation
Increase their job knowledge or improve thier skills
How can people evaluate whether their education, career, and life goals align?
A. Examine where they want to live in the future
B. Analyze the costs of schooling, the career potential,and return on investment
C. Consider whether they really want to go to college
D. Investigate whether there is growth in the job they want
B. Analyze the costs of schooling, the career potential,and return on investment
What is the total income before payroll deductions and withholdings called?
A. Net pay
B. Adjusted gross income
C. Gross pay
D. Earned income
Gross pay
What is the name for a subtraction from gross pay?
A. Payroll deduction
B. Standard deduction
C. Itemized deduction
D. Exemption
. Payroll deduction
Which of the following is typically the largest tax deduction for a worker?
A. Federal income tax
B. State income tax
C. Social Security tax
D. Medicare tax
Federal income tax
Which of the follwing are included in FICA taxes?
A. Federal and state income taxes
B. State and Social Security taxes
C. Standard and itemized deductions
D. Social Security and Medicare taxes
D. Social Security and Medicare taxes
What is net pay?
A. The amount you pay in taxes from each paycheck
B. The money you take home after taxes and deductions
C. The total amount of your payroll deductions
D. The same amount as your salary
The money you take home after taxes and deductions
Alicia received her first paycheck at work. She’s excited, but as she looks at her
paystub she gets confused. She wants to know how much money she made in the pay
period, but there are so many different numbers on the page. If she wants to know
how much money will actually be deposited in her bank account, which number should
she look at?
A. Federal income tax
B. Gross pay
C. Net pay
D. State income tax
Net pay
Mandatory deductions from a person’s paycheck include which of the follwing?
A. FICA and income tax withholdings
B. School taxes and contributions to a retirement account
C. Regressive taxes and employee automatic savings
D. Property taxes and employee benefits
FICA and income tax withholdings
The amount paid for working beyond the 40-hour work week is known as __________.
A. Net pay
B. Regular pay
C. Earned income
D. Overtime pay
D. Overtime pay
Employers must mail Form W-2 to an employee by ___________ of the year following the
year in which the employee worked for them.
A. January 31
B. February 15
C. April 15
D. January 1
A. January 31
