ABA CTFA Practice Test - Questions Answers, Page 11

The amount of liquid funds will vary with your personal circumstances and comfort level. Another useful liquidity guideline is to have a reserve fund equal to:

Even if, the annual balances, in certain months expenses may exceed income, causing a monthly budget deficit. Likewise, a surplus occurs when income in some months exceed expenses. It remedy may be:

It is the value today of an amount to be received in future; it is the amount that would have to be invested today at a given interest rate over a specified period of time to accumulate the future amount. What is it?

The dues paid for membership in our society; the cost of living in this country may be referred as:

Taxable income is:

Gross income essentially includes any and all income subject to federal taxes. Here are some common forms of gross income Except:

An adoption tax credit of up to $11650 is available for the qualifying costs of adopting child under age 18. Only taxpayers with AGI under $17,730 are eligible for the adoption tax credit. Here are some other common tax credits. Which of the following is/are Not out of those?

An extension of time beyond the April 15 deadline during which taxpayers, with the approval of the IRS, can file their returns without incurring penalties.

A technique used to reduce taxes in which a taxpayer shifts a portion of income to relatives in lower tax brackets.