Question

MUCH HELP NEEDED!!

1. What is the definition of gross income?

A.) amount of income saved per year
B.) amount earned before deductions
C.) amount of tax deducted from income
D.) amount received after deductions

4. The best reason to record income at the top of a budget is..

A.) to easily add expenses to it.
B.) it is the foundation of the budget.
C.) to avoid spending too much money.
D.) it is more important than expenses.

13. Read the scenario.

Yuri has $100 to spend at the store. He spots a pair of designer jeans with a $98 price tag on them but knows that he can buy three pairs of $30 jeans for about the same price. He decides to buy the $98 pair.

What is Yuri's motivation behind buying the pricier pair?

A.) emotional spending
B.) confusing needs and wants
C.) greedy spending
D.) conspicuous consumption

14. Which is a kind of federal payroll tax?

A.) medicare tax
B.) sales tax
C.) property tax
D.) progressive tax

Answer 1

Gross income in United States income tax law is generally receipts and gains from all sources. Gross income is the starting point for determining Federal and state income tax of individuals, corporations, estates and trusts, whether resident or nonresident.

Answer 2

Option B is correct

Gross income for any individual is the amount of money earned before paying for any deduction. These deductions can be in the form of Insurance premium, taxes and individual retirement account saving. The gross income of an individual is also known as gross pay. Once the deductions are subtracted from gross earnings, it becomes net earnings.

Net Earnings = gross Earnings - deductions