UGBA 135 Midterm Latest Update 2024-2025
Actual Exam from Credible Source with 300
Questions and 100% Verified Detailed Correct
Answers Guaranteed
% of workers starting at 25 financially independent at 65 - CORRECT ANSWER: about
5%
$ of wages to pay back = $ of debt? - CORRECT ANSWER: False, after tax
3 credit scoring agencies - CORRECT ANSWER: Transunion (Empirica score) Equifax
(Beacon score) Experian (Experian model)
401k plan to get employer matched - CORRECT ANSWER: -employer contributes a
certain amount to your retirement savings plan based on the amount of your own annual
contribution
Adjusted gross income - CORRECT ANSWER: -Measure of income calculated from
gross income and used to determine how much of your income is taxable
- Gross income = sum of all money and individual earns in a year (ie: wages, dividends,
alimony, capital gains, interest income, royalties, rental income, retirement distributions)
AGI = gross income - tax deductions
Alternative minimum tax - CORRECT ANSWER: a separate income tax code that began
in 1969 to prevent the rich from not paying income taxes. It was not indexed to inflation
and is now an extra tax burden on many upper middle class families.
,It ignores certain tax deductions. Forces you to recalculate your taxes by adding back
many of the normal deductions allowed on your federal tax return such as state income
and property taxes. If your taxable income is above for singles, 83,400 for married then
must recalculate and pay a higher regular tax or AMT.
Are benefits from social security tax free for seniors? - CORRECT ANSWER: Yes in
Part A
Are bonds issued by our federal government considered risky? - CORRECT ANSWER:
No, federal agency bonds are not guaranteed by the US government but hold high
regard
Are exchange traded funds always well diversified? - CORRECT ANSWER: No, some
are specific sector ones, and if that sector goes down, the ETF will.
Are partners in partnerships liable for federal income taxes? - CORRECT ANSWER: No
Are profits from options and restricted stock units subject to taxes? - CORRECT
ANSWER: Yes
Are shareholders in corporations have (un)limited liability? - CORRECT ANSWER:
Shareholders of LLC, S-Corp, C-Corp have limited liability
Are there surcharges for medicare for high income earners? - CORRECT ANSWER:
yes,for part A there has been an 0.9% increase for high income earners over $200,000
for singles and $250,000 for couples.
Are your social security and medicare contributions that you pay tax deductible for you?
- CORRECT ANSWER: No, you thought
Bad economy? - CORRECT ANSWER: maybe keep more cash on hand
,Balance and review your credit/bank statements every _________ - CORRECT
ANSWER: Month
Bankruptcy - CORRECT ANSWER: Bankruptcy will negatively impact your credit score
for up to 10 years. Hard to buy car, apartment, and higher interest rates. Does not
relieve you of taxes,student loans, alimony, child support
-handled in federal courts
Biggest reason investor in bonds determine better to buy corporate or municipal bond -
CORRECT ANSWER: -Tax free muni
they are both secured? corporation bonds secured by assets and muni bonds secured
by assessments, taxes and revenue.
Can a proprietorship be owned by a married couple? - CORRECT ANSWER: No, only
owned by one person
Can you and your parents both claim you for tax credit? - CORRECT ANSWER: To be
eligible to claim the child tax credit, the taxpayer must have at least one qualifying child
the child must be under the age of 17.
To be a qualifying child for the child tax credit, the child must be claimed as the
taxpayer's dependent.
(temporary $500 in credit)
Can you increase credit score by increasing your credit limit? - CORRECT ANSWER:
Yes, only if you stay below a 50% debt-to-credit ratio on each credit card. 30% ratio is
the best for top scores. Increase credit limit to lower credit ratio
community property vs. separate property - CORRECT ANSWER: community property:
any asset acquired or income earned by a married person while living with a spouse //
owned by both of you and divided equally
, separate property: anything acquired by a spouse before the marriage, during the
marriage by gift, devise, or bequest, and after the parties separate
Corporate tax dividends are taxed how many times? - CORRECT ANSWER: -twice
-once at a corporate level and once at shareholders
Credit card act - CORRECT ANSWER: If a credit company increases APR, it has to
reevaluate every 6 months and go to the old interest rate if appropriate
Credit scores and reports are two different things - CORRECT ANSWER: True
Credit Report: individual report card telling you if you have been making CC and loan
payments on time and personal info
Credit score: credit report determines score
Debt to Credit Ratio - CORRECT ANSWER: -if you have debt of 3000 and 6000 in
credit, 6000/3000 is 50% debt to credit ratio
-always try to be below 50%, 30% is the best
-always pay down what you owe or increase your credit limits to lower your credit ratio,
but don't charge more
difference between estate tax and inheritance tax - CORRECT ANSWER: 1. Estate tax
— tax paid out of the estate before distribution (max 40%)
purpose: to discourage the formation of an aristocracy where wealth was passed down
to generations and to collect taxes from wealthy indiv/families
There are both federal estate taxes and some states have their own state estate tax
2. Inheritance tax — paid by the heirs before distribution as well.
Actual Exam from Credible Source with 300
Questions and 100% Verified Detailed Correct
Answers Guaranteed
% of workers starting at 25 financially independent at 65 - CORRECT ANSWER: about
5%
$ of wages to pay back = $ of debt? - CORRECT ANSWER: False, after tax
3 credit scoring agencies - CORRECT ANSWER: Transunion (Empirica score) Equifax
(Beacon score) Experian (Experian model)
401k plan to get employer matched - CORRECT ANSWER: -employer contributes a
certain amount to your retirement savings plan based on the amount of your own annual
contribution
Adjusted gross income - CORRECT ANSWER: -Measure of income calculated from
gross income and used to determine how much of your income is taxable
- Gross income = sum of all money and individual earns in a year (ie: wages, dividends,
alimony, capital gains, interest income, royalties, rental income, retirement distributions)
AGI = gross income - tax deductions
Alternative minimum tax - CORRECT ANSWER: a separate income tax code that began
in 1969 to prevent the rich from not paying income taxes. It was not indexed to inflation
and is now an extra tax burden on many upper middle class families.
,It ignores certain tax deductions. Forces you to recalculate your taxes by adding back
many of the normal deductions allowed on your federal tax return such as state income
and property taxes. If your taxable income is above for singles, 83,400 for married then
must recalculate and pay a higher regular tax or AMT.
Are benefits from social security tax free for seniors? - CORRECT ANSWER: Yes in
Part A
Are bonds issued by our federal government considered risky? - CORRECT ANSWER:
No, federal agency bonds are not guaranteed by the US government but hold high
regard
Are exchange traded funds always well diversified? - CORRECT ANSWER: No, some
are specific sector ones, and if that sector goes down, the ETF will.
Are partners in partnerships liable for federal income taxes? - CORRECT ANSWER: No
Are profits from options and restricted stock units subject to taxes? - CORRECT
ANSWER: Yes
Are shareholders in corporations have (un)limited liability? - CORRECT ANSWER:
Shareholders of LLC, S-Corp, C-Corp have limited liability
Are there surcharges for medicare for high income earners? - CORRECT ANSWER:
yes,for part A there has been an 0.9% increase for high income earners over $200,000
for singles and $250,000 for couples.
Are your social security and medicare contributions that you pay tax deductible for you?
- CORRECT ANSWER: No, you thought
Bad economy? - CORRECT ANSWER: maybe keep more cash on hand
,Balance and review your credit/bank statements every _________ - CORRECT
ANSWER: Month
Bankruptcy - CORRECT ANSWER: Bankruptcy will negatively impact your credit score
for up to 10 years. Hard to buy car, apartment, and higher interest rates. Does not
relieve you of taxes,student loans, alimony, child support
-handled in federal courts
Biggest reason investor in bonds determine better to buy corporate or municipal bond -
CORRECT ANSWER: -Tax free muni
they are both secured? corporation bonds secured by assets and muni bonds secured
by assessments, taxes and revenue.
Can a proprietorship be owned by a married couple? - CORRECT ANSWER: No, only
owned by one person
Can you and your parents both claim you for tax credit? - CORRECT ANSWER: To be
eligible to claim the child tax credit, the taxpayer must have at least one qualifying child
the child must be under the age of 17.
To be a qualifying child for the child tax credit, the child must be claimed as the
taxpayer's dependent.
(temporary $500 in credit)
Can you increase credit score by increasing your credit limit? - CORRECT ANSWER:
Yes, only if you stay below a 50% debt-to-credit ratio on each credit card. 30% ratio is
the best for top scores. Increase credit limit to lower credit ratio
community property vs. separate property - CORRECT ANSWER: community property:
any asset acquired or income earned by a married person while living with a spouse //
owned by both of you and divided equally
, separate property: anything acquired by a spouse before the marriage, during the
marriage by gift, devise, or bequest, and after the parties separate
Corporate tax dividends are taxed how many times? - CORRECT ANSWER: -twice
-once at a corporate level and once at shareholders
Credit card act - CORRECT ANSWER: If a credit company increases APR, it has to
reevaluate every 6 months and go to the old interest rate if appropriate
Credit scores and reports are two different things - CORRECT ANSWER: True
Credit Report: individual report card telling you if you have been making CC and loan
payments on time and personal info
Credit score: credit report determines score
Debt to Credit Ratio - CORRECT ANSWER: -if you have debt of 3000 and 6000 in
credit, 6000/3000 is 50% debt to credit ratio
-always try to be below 50%, 30% is the best
-always pay down what you owe or increase your credit limits to lower your credit ratio,
but don't charge more
difference between estate tax and inheritance tax - CORRECT ANSWER: 1. Estate tax
— tax paid out of the estate before distribution (max 40%)
purpose: to discourage the formation of an aristocracy where wealth was passed down
to generations and to collect taxes from wealthy indiv/families
There are both federal estate taxes and some states have their own state estate tax
2. Inheritance tax — paid by the heirs before distribution as well.
