1. The personal balance sheet would not generally include which of the following items: a. dividends received during the year b. motor vehicle c. collection of rare banknote d. both a and b 2. Which of the following is generally true about thee calculations of an individuals equity or net worth ratio? a. For a young person, it is expected that their equity ratio would be relatively low as they are likely yo have a high level of debt. b. For a young person, it is expected that their equity ratio would be relatively high as they are likely yo have a low level of debt. c. the ratio shows the precentage of net worth to taotal assets d. both a and c 3. Sources of taxation law include: a. The Income tax assessment Act 1997 b. Common law c. Public and private Rulings from the ATOD. d. all of the above 4. The greater the initial investment the : a. greater the future value of a given interest rate and given number of periods b. lower the future value of a given interest rate and given number of periods c. future value will be the same at a given interest rate and given number of periods d. none of the above 5. In Australia, the maximum tax rate imposed on unearned income by minors is: a. less than that of adult individual taxpayers b. equal to that of adult individual taxpayers c. greater than that of adult individual taxpayers d. the same as that of that of adult individual taxpayers at all levels of taxable income 6. A rational response in relation to an investment involving time preference for money issues is to prefer to receive a given sum of money earlier rather than later because: a. there is a greater chance that the entity promising you the money may not fulfill the promise the longer the waiting period b. the earlier the money is recived the earlier the ability to reinvest and earn a rate of return on such funds c. the earlier the money is recived the earlier the ability to use the funds for current consumption d. all of the above 7 marginal income trax rates for individuals in Australia are best described as: a. regressive b. progressive c. constant d. none of the above 8. The Commonwealth Government has exclusively levied income tax in Australia since: a. 1912 b. 1936 c. 1942 d. 1997 9. Indexation of the CGT cost base is only generally available where: a. an asset is acquired before 11:45am on 21 September 1999 and the asset is held for at least 12 months b. an asset is acquired after 11.45am on 21 September 1999 and the asset is held for at least 12 months c. a capital loss was realised d. both a and c 10. Where a company has paid no Australian company tax on profits from which a dividend is derived, the dividend is said to be: a. fully franked b. not taxable c. subject to the maximum marginal personal tax rate in the hands of the shareholder d. unfranked 11. A period of negative savings where income does not meet the required level of expenditures could alsso be regarded as a(n): a. asset b. incre`ase in `equi`ty c. savings surplus d. savings deficit 12. The company tax rate levied on taxable income is: a. 10% b. 15% c. 30% d. 48.5% 13. If you were to deposit $850 today into on investment account earning 6% p.a, compunded annually, approximately how such will you have in your account at the end of 5years? a. $1,165 b. $1,137 c. $1,206 d. $620 14. Which of the following are not tax deductible expenses? a. expenses of a domestic nature b. expenses of a capital nature c. expenses incurred in earning exempt income d. all of the above 15. The debt-service ratio shows monthly debt commitments as a percentage of: a. before-tax monthly income b. total liabilities c. after-tax monthly income d. none of the above 16. An individual would rather receive a taxation offset as opposed to an allowable deduction because: a. an allowable deduction is substracted from assessable income in order to reduce taxable income b. a taxation offset can be used to eliminate gross tax payable c. a tax offset represents a reduction in the amount of tax that is required to be paid by a taxpayer d. all of the above 17. Income tax is imposed on a taxpayers: a. assessable income b. taxable incomes c. tax offsets d. taxable income less tax offsets 18. Which of the following items would not generally be included in the calculations of an individuals liquidity ratio? a. total balance of an outstanding 25-year mortgage loan taken out in the last year b. debt repayments over the next 12 months c. amount of outstanding telephone account d. both and c 19. The time The time preference for money concept is directly related to the preference of: a. receiving a specified sum of money today rather than at some future time when such choice is available b. receiving a specified sum of money at some future time rather than today when such choice is available c. paying a specified sum of money at some future time rather than today when such choice is avaialble d. both a and c 20. In the clauclation of the savings ratio, savings is defined as: a. the amount left over after dedcuting expenditure from income b. the balance of an individula funds on deposits at a bank c. the amount left over after deducting expenditure from income after we add back items that may be regarded as an investment d. both a and b
