Ch. 3: Taxes in a Financial Plan Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which statement is true about sales tax?

Question 2 2. What is the cutoff for the alternative minimum tax?

Question 3 3. Johnny has many medical expenses during the year. As a tax consultant, what advice can you give to Johnny?

Question 4 4. The IRS allows a standard deduction if the taxpayer chooses not to itemize. A standard deduction is based on which of the following?

Question 5 5. What is market value?

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Question 6 6. Select the situation that will NOT lead to a tax deduction.

Question 7 7. Choose the MOST CORRECT statement as it relates to home office expenses.

Question 8 8. Which expenses can be paid with pre-tax dollars from a flexible spending account?

Question 9 9. Which statement about capital gains is true?

Question 10 10. Americans pay federal income tax to support which programs and services?

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Question 11 11. Tax liability is calculated based on _____.

Question 12 12. Mrs. Smith filed her tax returns for the first time as a single person since the divorce. She has sole custody of the children. The IRS has decided to audit her. Why is she being audited?

Question 13 13. How are itemized deductions related to tax?

Question 14 14. What is TRUE about the tax code?

Question 15 15. What is the alternative minimum tax?

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Question 16 16. All personal income taxes must be filed by which date?

Question 17 17. In what decade was the alternative minimum tax introduced?

Question 18 18. Choose the best preparation method for a complex tax situation.

Question 19 19. Which is true about filing taxes?

Question 20 20. Tina sells a candy bar of $1.08 which includes 8% sales tax. She buys the candy for $0.75 and needs to make a $0.30 profit. Is her current price point enough and why?

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Question 21 21. Jan has used a standard deduction for the last few years. However, she bought a house and increased her charitable contributions, and so now she wants to itemize her deductions to further reduce her tax liability. On which schedule would she file the itemized deductions?

Question 22 22. Which of these could result in a tax break?

Question 23 23. How will an increase in your income affect your tax liability?

Question 24 24. Aaron has worked all of his life and is ready to retire. Why is Aaron currently guaranteed some form of retirement benefit?

Question 25 25. Who is the intended target of the alternative minimum tax?

Ch. 3: Taxes in a Financial Plan Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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