#1
Which of the following is a direct tax?
Value Added Tax (VAT)
Income Tax
Excise Duty
Goods and Services Tax (GST)
#2
In the context of personal finance, what does the term '401(k)' refer to?
A type of tax form
A retirement savings plan sponsored by an employer
A tax credit for education expenses
An investment fund for startups
#3
What is the primary purpose of the Internal Revenue Service (IRS) in the United States?
To regulate the stock market
To enforce traffic laws
To collect taxes and enforce tax laws
To manage public housing programs
#4
What is the role of the Securities and Exchange Commission (SEC) in the United States?
To oversee and regulate the banking industry
To enforce immigration laws
To regulate and oversee the securities industry and protect investors
To manage national parks and wildlife reserves
#5
What is the purpose of the Federal Reserve in the United States?
To regulate telecommunications
To manage national parks
To control the money supply and promote economic stability
To oversee international trade agreements
#6
What is the purpose of a W-4 form in the United States tax system?
To report investment income
To claim tax credits
To report employment income and withholdings
To apply for tax exemptions
#7
What is the difference between tax evasion and tax avoidance?
They are the same thing
Tax evasion is illegal, while tax avoidance is legal
Tax avoidance is illegal, while tax evasion is legal
Both are legal and commonly used terms
#8
What is the difference between a tax credit and a tax deduction?
A tax credit reduces taxable income, while a tax deduction directly reduces the amount of tax owed
A tax deduction reduces taxable income, while a tax credit directly reduces the amount of tax owed
They are interchangeable terms with the same meaning
Neither affects the tax owed
#9
In accounting, what does the term 'ROI' stand for?
Return on Investment
Revenue Over Income
Rate of Inflation
Risk of Interest
#10
What is the purpose of the Goods and Services Tax (GST) in India?
To regulate international trade
To control inflation
To simplify and unify indirect taxes across the country
To fund public transportation projects
#11
What is the concept of a progressive tax system?
Everyone pays the same amount of tax
Tax rates increase as income increases
Tax rates decrease as income increases
There is no tax on income
#12
What is the purpose of the Financial Accounting Standards Board (FASB)?
To set accounting standards for government agencies
To regulate the stock market
To develop and improve accounting standards for private companies
To oversee tax enforcement
#13
What is the concept of a regressive tax?
Tax rates increase as income increases
Everyone pays the same amount of tax
Tax rates decrease as income increases
Tax rates are higher for lower-income individuals
#14
In the context of corporate finance, what does the term 'EBITDA' stand for?
Earnings Before Interest, Taxes, Depreciation, and Amortization
Estimated Business Investment and Tax Deductions Assessment
Effective Budgeting for Income Tax and Debt Allocation
Enterprise Business Integration and Technology Development Assessment
#15
What is the purpose of the Financial Stability Oversight Council (FSOC) in the United States?
To regulate the housing market
To monitor and address risks to the U.S. financial system
To enforce consumer protection laws
To manage international trade agreements