MCS 2100 Final Exam Questions and
All Correct Answers Graded A+(2025-
2026) Updated.
Cash flow statement - Answer Summary of cash in and out over a given time
Balance sheet - Answer snapshot of finances at a particular time
list of assets and liabilities
Consumer Price Index (CPI) - Answer Average change in price for a fixed amount of
goods/services
Net Pay (Take Home Pay) - Answer aka disposable income
total earnings after deducting tax
Discretionary income - Answer money left over after paying for necessities
Gross Income - Answer Employment
Retirement income (pensions)
Investment income
Employment insurance
Taxable capital gains
Spousal Support
Old age security
Deductions - Answer (expenses incurred while earning an income)
Childcare
Moving for a job
Interest payed on investment loans
Carrying charges (related to investments eg. safety deposit box rental)
Union + Professional dues + employment expenses
Contributions to deferred income plans (RRSP)
,Marginal Tax Rate - Answer the extra taxes paid on an additional dollar of income
Average Tax Rate - Answer % of income that is payed in taxes
Non-refundable Tax Credit - Answer tax credit that is subtracted from your tax payable (act
as a deduction)
Can only reduce the taxes you owe
e.g.
Basic personal / spousal
Dependents
Age
Disability
Tuition/Textbooks
Public transport
Children's fitness
Charitable conations
Medical expenses
Canada employment amount
Student loan interest + dividend tax credits
Refundable Tax Credit - Answer Received as cash back (don't need tax payable)
for low-income families
HST rebate + the ontario trillium benefit (ON-BEN)
Excise Tax - Answer imposed on specific goods/services
e.g. gasoline
Capital Gains Tax - Answer a tax levied on the returns that people earn from capital
investments, like the profits from the sale of stocks or a home
, up to 50% is taxable
Tax on Income System (TONI) - Answer allows each province to decide their own tax rates
and tax credits
Source Withholding - Answer Employer is required to withhold tax at source and give it to
the CRA
Appears on the T4 form
subtracted from your tax owed --> annual tax refund
Tax Deferral - Answer RRSP, RPP, IPP, DPSP
RRSP --> if made within the first 60 days (eligible for previous year's tax forms)
RPP --> contribution made by employers
IPP --> Defined benefit RPP (addition to RPP)
DPSP --> similar to RPP (reduce RRSP contribution)
Types of Banks - Answer Chartered --> own a range of corporations
Schedule 1 --> Canada owned
Schedule 2 --> foreign-owned (subsidiaries of a foreign bank (legally their own entity) that focus
on commercial corporate loans)
Schedule 3 --> foreign-owned (branches of foreign institutions that are allowed to do business)
Trust Companies - Answer Most are owned by banks
Act as a trustee and manage assets
Money Market Funds - Answer Offered by investment companies
All Correct Answers Graded A+(2025-
2026) Updated.
Cash flow statement - Answer Summary of cash in and out over a given time
Balance sheet - Answer snapshot of finances at a particular time
list of assets and liabilities
Consumer Price Index (CPI) - Answer Average change in price for a fixed amount of
goods/services
Net Pay (Take Home Pay) - Answer aka disposable income
total earnings after deducting tax
Discretionary income - Answer money left over after paying for necessities
Gross Income - Answer Employment
Retirement income (pensions)
Investment income
Employment insurance
Taxable capital gains
Spousal Support
Old age security
Deductions - Answer (expenses incurred while earning an income)
Childcare
Moving for a job
Interest payed on investment loans
Carrying charges (related to investments eg. safety deposit box rental)
Union + Professional dues + employment expenses
Contributions to deferred income plans (RRSP)
,Marginal Tax Rate - Answer the extra taxes paid on an additional dollar of income
Average Tax Rate - Answer % of income that is payed in taxes
Non-refundable Tax Credit - Answer tax credit that is subtracted from your tax payable (act
as a deduction)
Can only reduce the taxes you owe
e.g.
Basic personal / spousal
Dependents
Age
Disability
Tuition/Textbooks
Public transport
Children's fitness
Charitable conations
Medical expenses
Canada employment amount
Student loan interest + dividend tax credits
Refundable Tax Credit - Answer Received as cash back (don't need tax payable)
for low-income families
HST rebate + the ontario trillium benefit (ON-BEN)
Excise Tax - Answer imposed on specific goods/services
e.g. gasoline
Capital Gains Tax - Answer a tax levied on the returns that people earn from capital
investments, like the profits from the sale of stocks or a home
, up to 50% is taxable
Tax on Income System (TONI) - Answer allows each province to decide their own tax rates
and tax credits
Source Withholding - Answer Employer is required to withhold tax at source and give it to
the CRA
Appears on the T4 form
subtracted from your tax owed --> annual tax refund
Tax Deferral - Answer RRSP, RPP, IPP, DPSP
RRSP --> if made within the first 60 days (eligible for previous year's tax forms)
RPP --> contribution made by employers
IPP --> Defined benefit RPP (addition to RPP)
DPSP --> similar to RPP (reduce RRSP contribution)
Types of Banks - Answer Chartered --> own a range of corporations
Schedule 1 --> Canada owned
Schedule 2 --> foreign-owned (subsidiaries of a foreign bank (legally their own entity) that focus
on commercial corporate loans)
Schedule 3 --> foreign-owned (branches of foreign institutions that are allowed to do business)
Trust Companies - Answer Most are owned by banks
Act as a trustee and manage assets
Money Market Funds - Answer Offered by investment companies
