Chapters 7,8,&9
1. When government spends more than it receives in revenue, it has a ______.
2. A set of goals for spending, saving, and investing the money you receive is called a ______.
3. A document that lists the valuable things you own, along with their purchase prices and approximate current values, is called an ______.
4. A ______is a person who promises to pay the debt of another person.
5. What are advantages of computerized record keeping?
6. A ______check is one that has been processed by the bank.
7. What happens when you float a check?
8. What does the column headed by a check mark in a checkbook register indicate?
9. Do debit card transactions need to be recorded in your checkbook register?
10. The largest source of government revenue in the United States is
11. A tax for which the rate stays the same, regardless of income, is called a
12. In the United States, the power to impose federal taxes rests with
13. In this kind of audit, the IRS sends a letter to the taxpayer, asking him or her to answer specific questions about the tax return.
14. What is a flat tax an example of?
15. In the United States, the responsibility for filing a tax return rests with the individual. This defines the concept of
16. Your filing status on your tax return is based on
17. Provide examples of non-taxable income
18. This tax is an amount subtracted directly from the tax owed.
19 You must file your tax return by this date every year.
20. When preparing a budget, you need to focus mostly on your ______income.
21. What is the formula in a balanced budget?
22. Most experts recommend saving ___ percent of your disposable income each pay period.
23. Provide examples of variable expenses
24. Provide examples of assets
25. The IRS has the legal right to audit your tax returns and supporting records for ___ years from the date of filing.
26. When one person makes an offer and another person changes it, the second person is
27. Define the elements of a legally binding contract
28. A person who creates and signs the promissory note and agrees to pay it on a certain date is called the
29. A computer program that organizes data in columns and rows and can perform calculations using the data is called a
30. The person who cashes a check is called the
31. When a check is returned to the payee’s bank due to insufficient funds, the check is said to have
32. When you open a checking account, most banks will require you to have an initial deposit of at least
33. Which part of a check provides a place for you to write the purpose of the check?
34. When a check is written the amount should be recorded in the checkbook register in what column
35. A check is written to Mary Smith. On the back of the check, John writes “Pay to the order of Megan Jones,” then signs her name. What kind of endorsement is this?
36. An interest-bearing checking account that pays a higher rate of interest than a usual account, but typically has more restrictions, is called a
37. A check written by a bank on its own funds is called a
38. A request that a bank not honor a specific check is called a(n)
39. A person or institution that manages property for the benefit of someone else under a special agreement is called a(n)
40. Incoming funds to the government are called ______.
41. ______taxes take a larger share of income as the amount of income grows.
42. Sales taxes on specific goods and services, such as gasoline or cigarettes, are called ______taxes.
43. Willful failure to pay taxes is called tax ______.
44. Tax rates apply to different income ranges, or tax ______.
45. A(n) ______is an amount you may subtract from your income for each person who depends on your income to live.
46. Someone who lives with you and for whom you pay more than half of his/her living expenses is called a(n) ______.
47. All the taxable income you receive is called ______income.
48. Money paid to support a former spouse is called ______.
49. Money paid to a former spouse for support of dependent children is called ______support.
50. Your ______income is the money you have left to spend or save after taxes and other required deductions are taken.
51. A spending and saving plan based on your expected income and expenses is called a(n) ______.
52. ______expenses are costs that do not change from month to month.
53. ______expenses are costs that vary in amount and type, depending on the choices you make.
54. Money or debts you owe to others are called ______.
55. Assets minus liabilities equals ______.
56. A legally enforceable agreement between two or more people is called a(n) ______.
57. Something of value exchanged for something else of value is called ______.
58. The word ______means legally collectible.
59. A(n) ______or guarantee is a statement assuring quality and performance of a product or service.
60. A(n) ______is a written order to a bank to pay the amount stated to the person or business named on it.
61. A checking account is also called a(n) ______deposit, because the money may be withdrawn at any time.
62. A check written for more money than your account contains is called a(n) ______.
63. A booklet used to record checking transactions is called a checkbook ______.
64. A(n) ______endorsement is the signature of the payee written exactly as his or her name appears on the front of the check.
65. A personal check that the bank guarantees to be good is called a(n) ______check.
66. A(n) ______card is a plastic card that allows immediate deductions from a checking account to pay for purchases.
67. With ______protection, your checks will be covered even if you have insufficient funds in your checking account.
68. Financial institutions offer customers a(n) ______box to store valuable items or documents.
69. A(n) ______verifies a person’s identity, witnesses the person’s signature on a legal document, and then “notarizes” the signature as valid.
Essays
70. What is an audit? What should taxpayers do if they are being audited?
71. What are deductions on a tax return? What is the difference between itemized deductions and the standard deduction? How does a taxpayer itemize deductions?
72. What is a checking account? Describe several advantages of a checking account.
73. The balance your checkbook register shows will not always match the ending balance shown on your bank statement. Why not?
74. What is the best way to avoid banking fees?