Assignment 5

(20 points)
Assignment 5: Taxes and Credit
Instructions

Save this file in your course folder, and name it with Assignment, the section number, and your
first initial and last name. For example, Jessie Robinson's assignment for Section 1 would be
named Assignment1JRobinson.

Type the answers to the assignment questions below. Use complete sentences unless the
question says otherwise. You will have more than one day to complete an assignment. At the
end of each day, be sure to save your progress.

Review Lesson 4 of the Course Overview for instructions about turning in your assignments.

Assignment Questions

In Section 5, you learned about taxes and credit. Now, you'll apply what you learned.

TIP: If you want, you can practice filling out the 1040 tax form, but don't turn the tax
form in to your instructor. The information on that form is personal and should be kept
private.

1. How does payroll withholding help a company's employees? (1-2 sentences. 2.0
points)

with taxes and that money goes strait to the irs.

2. List at least three types of tax that a company may have to withhold from
employees' paychecks. (1-3 sentences. 3.0 points)

income tax medicare and imployie tax.

3. What are the two main types of tax forms a company provides to employees so
the employees can fill out their 1040 tax form? (1-2 sentences. 2.0 points)

the two main types are 1099 forms and W-2.

4. List at least two tips for using credit wisely. (1-2 sentences. 2.0 points)

Pay on time and borrow what you can pay back.

5. Why is a bank more likely to offer you credit if you have a co-signer with good
credit? (1-4 sentences. 3.0 points)

because they are likely to beable to pay the dept if you cant.

6. Describe at least three things a bank would consider about you when deciding
whether to give you a loan. (1-3 sentences. 3.0 points)

credit score, background history and lastly value of your colatoral

7. Write at least two policies that a company could use to decide which customers to
offer credit to. (1-2 sentences. 2.0 points)

what is their dept to income. check their past criminal history.

8. Which type of credit requires that borrowers carefully manage the debt so it
doesn't get out of control? Explain why this type of credit requires more careful
management. (1-5 sentences. 3.0 points) Trade credit its because it keeps getting
bigger the longer you wait or miss manege it.