Fac1501-Assignment #3
Exchange Traded Funds ("ETF") provide all the following investment features except:
Dividends
Diversification
Net asset value
You Answered Liquidity - correct answer-Net asset value
According to the current tax code, you can give the following without having to pay a gift tax
$15,000 a year to as many people as you want
the above
Pay hospital bills for a student directly to the hospital
Pay student tuition directly to the institution - correct answer-All the above
The "bid" of a stock is
The lowest price a buyer is willing to sell
The highest price a buyer is willing to pay
The lowest price a seller is willing to sell
The "last" price the stock traded - correct answer-The highest price a buyer is willing to pay
Stock options
May be in the money
May be given to employees for free
May be out of the money
All the above - correct answer-All the above
Which of the following is not an eligible itemized deduction?
Taxes you paid
Medical and Dental expenses
Number of dependents
Gifts to charity - correct answer-Number of dependents
Stock options
May be subject to capital gains or losses after exercised
May be worthless
All the above
May be subject to payroll taxes when exercised - correct answer-All the above
The "ask" of a stock is
, The "last" price the stock traded
The lowest price a buyer is willing to sell
The lowest price a seller is willing to sell
The highest price a buyer is willing to pay - correct answer-The lowest price a seller is willing
to sell
Losses in excess of gains in any one year can be used to reduce taxable income up to
$3,000
$2,000
$4,000
$1,000 - correct answer-$3,000
Which of the following statements about partnerships is false?
Partnerships issue a K-1 to each partner
When a partner dies, the partnership terminates
Partnerships do not pay federal taxes
Limited partners have limited liability - correct answer-When a partner dies, the partnership
terminates
The quote on ABC stock is "bid" $25.75 and "ask" $26.05. If you enter a market order to buy,
the price you would pay will be:
$25.90
$26.05
$25.50
$25.75 - correct answer-$26.05
In a partnership, each partner and the IRS receives a
K-1
1099
W-2
None of the above - correct answer-K-1
When investing in stocks, I do not recommend:
Stop orders
Selling short
All the above
Day trading - correct answer-All the above
A sole proprietor reports business profits or losses to the IRS by filing a
Sole proprietor business tax form
K-1
1099 Form
Exchange Traded Funds ("ETF") provide all the following investment features except:
Dividends
Diversification
Net asset value
You Answered Liquidity - correct answer-Net asset value
According to the current tax code, you can give the following without having to pay a gift tax
$15,000 a year to as many people as you want
the above
Pay hospital bills for a student directly to the hospital
Pay student tuition directly to the institution - correct answer-All the above
The "bid" of a stock is
The lowest price a buyer is willing to sell
The highest price a buyer is willing to pay
The lowest price a seller is willing to sell
The "last" price the stock traded - correct answer-The highest price a buyer is willing to pay
Stock options
May be in the money
May be given to employees for free
May be out of the money
All the above - correct answer-All the above
Which of the following is not an eligible itemized deduction?
Taxes you paid
Medical and Dental expenses
Number of dependents
Gifts to charity - correct answer-Number of dependents
Stock options
May be subject to capital gains or losses after exercised
May be worthless
All the above
May be subject to payroll taxes when exercised - correct answer-All the above
The "ask" of a stock is
, The "last" price the stock traded
The lowest price a buyer is willing to sell
The lowest price a seller is willing to sell
The highest price a buyer is willing to pay - correct answer-The lowest price a seller is willing
to sell
Losses in excess of gains in any one year can be used to reduce taxable income up to
$3,000
$2,000
$4,000
$1,000 - correct answer-$3,000
Which of the following statements about partnerships is false?
Partnerships issue a K-1 to each partner
When a partner dies, the partnership terminates
Partnerships do not pay federal taxes
Limited partners have limited liability - correct answer-When a partner dies, the partnership
terminates
The quote on ABC stock is "bid" $25.75 and "ask" $26.05. If you enter a market order to buy,
the price you would pay will be:
$25.90
$26.05
$25.50
$25.75 - correct answer-$26.05
In a partnership, each partner and the IRS receives a
K-1
1099
W-2
None of the above - correct answer-K-1
When investing in stocks, I do not recommend:
Stop orders
Selling short
All the above
Day trading - correct answer-All the above
A sole proprietor reports business profits or losses to the IRS by filing a
Sole proprietor business tax form
K-1
1099 Form
