AnswersGA-GSE Personal Finance and EconomicsUnderstanding Net Worth

Understanding Net Worth — Unit test Answers

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1
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Through the successful study of personal finance, an individual will be

A
better prepared to calculate financial risks
B
able to spend available assets.
C
faced with long-term challenges.
D
more likely to avoid high opportunity costs.
2
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Which are shown on a balance sheet? Select three choices.

A
assets
B
liabilities
C
age
D
time period
E
date of birth
3

Which best describes the purpose of recording past income and spending in a budget?

A
to know the historic cost of goods
B
to serve as the basis for future planning
C
to learn why having savings is important
D
to learn why expenditures are likely to increase
4

What term is used to describe an individual's money and personal property?

A
budget
B
income
C
assets
D
finances
5

Quincy listed his assets and liabilities. CashRentStocksJewelryStudent LoanUtilitiesWhich are Quincy’s assets? Select three choices.

A
cash
B
rent
C
stocks
D
jewelry
E
student loan
6

Emma has decided that she needs to assess the risk and return of buying an extended warranty for her new laptop for school. Which of these practical questions should she ask herself to assess the risk? Select three options.

A
Will the warranty cover the cost of any physical damage?
B
Should I buy a different model?
C
Would it be better for me to buy a desktop computer?
D
Is the cost of replacement less than the cost of the warranty?
E
Is the laptop worth the extra expense of the warranty?
7

Natalie’s income statement for the month of October is shown. What is Natalie’s net income for the month of October?

Question illustration
A
$930.00
B
$980.00
C
$1,930.00
D
$1,980.00
8

Which describes a type of tax that people pay on money they earn?

A
flat tax
B
income tax
C
purchase tax
D
progressive tax
9

This table compares the requirements for a career as an athletic trainer or an air traffic controller. A student who is interested in becoming an air traffic controller will make

Question illustration
A
more money than an athletic trainer but will have a harder time finding a job.
B
more money than an athletic trainer and will have an easier time finding a job.
C
less money than an athletic trainer but will have an easier time finding a job.
D
less money than an athletic trainer and will have a harder time finding a job.
10

Lauren is trying to find her net income. She used the statement and the steps shown.Step 1List all income, including tips and commissions, and list all expenses, including food, entertainment, and clothing.Step 2Total all the income. Then total all the expenses.Step 3Add the total of the income and the expenses.Which explains Lauren’s error?

Question illustration
A
Lauren made an error in step 1 because she should not include tips and commissions in her income.
B
Lauren made an error in step 1 because she should not include entertainment in her expenses.
C
Lauren made an error in step 2 because she does not need to total the expenses.
D
Lauren made an error in step 3 because she should have subtracted the expenses from the income.
11

[BLANK]

A
W-2
B
W-4
C
1040
12

The image shows a sales receipt.

Question illustration
A
6.25 percent
B
8.5 percent
C
10 percent
D
10.85 percent
13

What is the job outlook for a US postal worker?

A
The career is growing and will provide more opportunities over time.
B
The career is growing and will provide fewer opportunities over time.
C
The career is shrinking and will provide more opportunities over time.
D
The career is shrinking and will provide fewer opportunities over time.
14

Which is a kind of federal payroll tax?

A
medicare tax
B
sales tax
C
property tax
D
progressive tax
15

Which describes a set amount of pay received by a worker over the course of a year?

A
tuition
B
expense
C
salary
D
hourly wage
16

What is one difference between a vocational school and on-the-job training?

A
A vocational school degree takes one year to earn. On-the-job training takes two or more years.
B
A vocational school degree takes weeks or months to earn. On-the-job training takes two years or fewer.
C
A vocational school is usually paid for by the worker. On-the-job training is usually paid for by the employer.
D
A vocational school is usually paid for by the employer. On-the-job training is usually paid for by the worker.

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