Personal Finance Ch. 7 & 8: Vocab

Money in this country is collected from citizens and redistributed according to priorities determined by _____. Congress
Money collected by the gov’t from various sources is known as _____. Revenue
A tax that increases in proportion to increases income is known as a(n) _____ tax. Progressive
Money earned by individuals that is subject to taxation is called _____. Taxable income
In order to avoid itemizing deductions, a person may elect to take the _____, which is a flat amount. Standard deduction
Money paid to a former spouse (which is taxable income) for that person’s support is called _____. Alimony
Money paid to a former spouse (which isn’t taxable income) for the support of dependent children is called_____. Child support
Expenses that can be subtracted from gross income are called _____. Itemized deductions
The amount remaining when adjustments are subtracted from gross income is called _____. Adjusted gross income
When all sources of taxable income are added together, the total is called _____ income. Gross
An amount that can be subtracted from your income for each person who depends on your income to live is a(n) _____. Exemption
A(n) _____ tax allows a higher-income person to pay a lower percentage of income in taxes than a lower-income person. Excise
To intentionally fail to pay taxes owed is to commit a serious crime called _____. Tax evasion
A tax system that is based on _____ requires all citizens to be responsible for preparing and filing their tax returns on time and paying taxes due. Voluntary compliance
A type of tax for which the rate stays the same regardless of income is called _____. Proportional tax
A(n) _____ is an amount subtracted directly from tax owed. Tax credit
An administrative agency of the federal gov’t that collects taxes and enforces tax laws is the _____. IRS (Internal Revenue Service)
An examination of tax returns by the IRS is called a(n) _____. Audit
All the money you receive is either _____, saved, or invested. Spent
An orderly program for spending, saving, and investing the money you receive is known as a(n) _____. Financial plan
Money you have to spend as you wish–after all required taxes and deduction–is known as _____. Disposable income
A(n) _____ is an organized plan whereby you match your expected income with expenses and savings. Budget
A computer program that organizes data for easy search and retrieval is a(n) _____. Database
A(n) _____ is a statement about a product’s qualities or performance that the seller assures the buyer are true. Warranty
Expenses that remain constant and cannot be easily changed or removed from a budget are called _____ expenses. Fixed
Expenses that may change according to needs and short-term goals are called _____ expenses. Variable
A(n) _____ is a person who promises to pay the debt of another person. Co-signer
Items of value that a person owns are called ______. Assets
Amounts of money owed to others, also known as debts, are called _____. Liabilities
When you subtract your debts from the total amount of things you own, the difference is known as _____. Net worth
When income exceeds expenses, the difference is called a(n) _____. Cash surplus
A legally enforceable agreement between two or more parties to do or not to do something is a(n) _____. Contract
Unwritten agreements, often called _____ contracts, are created by the actions or conduct of someone. Implied
Anything of value exchanged as a part of a contract is called _____. Consideration
_____ are persons who are legally able to give sane and intelligent consent and are legally capable of entering into contracts. Competent(s)
A(n) _____ is a document that is a written order to release or issue money, the most common of which is a check. Negotiable instrument
When a document is _____, the signature is verified by a notary public. Notarized
The person who creates and signs a promissory note is called the _____. maker
The person to whom a negotiable instrument is made payable is called the _____. Pager
The word _____ means legally collectible. Negotiable
A(n) _____ program organizes data in columns and rows and performs calculations using the data. Spreadsheet.
Know how to do the math for the test.

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