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22 Cards in this Set
- Front
- Back
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Standard deduction |
a blanket deduction that depends on the taxpayer's filing status, age and vision and can be taken by a taxpayer whose total itemized deductions are too small. |
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Itemized deduction |
personal expenditures that can be deducted from AGI when determining taxable income. |
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Purchase option |
a price specified in a lease at which the lessee oan buy the car at the end of the lease term. |
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Money factor |
the financing rate on a lease, similar to the interest rate on a loan. |
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Exemptions |
deductions from AGI based on the number of persons supported by the taxpayer's income. |
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Capitalized cost |
the price of a car that is being leased. |
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Tax credits |
deductions from a taxpayer's tax liability that directly reduce his or her taxes due rather than taxable income. |
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Residual value |
the remaining value of a leased car at the end of the lease term. |
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Amended return |
a tax return filed to adjust for information received after the filing date of the taxpayer's original return or to correct errors. |
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Depreciation |
the loss in the value of an asset such as an automobile that occurs over its period of ownership, calculated as the difference between the price initially paid and the subsequent sale price. |
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Tax audit |
an examination by the IRS to validate the accuracy of a given tax return. |
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Simple interest |
interest that is paid only on the initial amount of the deposit. |
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Tax deferred |
income that is not subject to taxes immediately but that will later be subject to taxes. |
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Compound interest |
when interest earned in each subsequent period is determined by applying the nominal rate of interest to the sum of the initial deposit and the interest earned in each prior period. |
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Cash management |
the routine, day to day administration of cash and near cash resources, also known as liquid assets, by an indivudual or family. |
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Stop payment |
an order made by an account holder instructing the depository institution to refuse payment on an already issued check. |
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Deposit insurance |
a type of insurance that protects funds on deposit against failure of the institution, can be insured by the FDIC and the NCUA. |
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Overdraft |
The result of writing a check for the amount greater than the current account balance. |
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Internet bank |
an online commercial bank. |
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Checkbook ledger |
a booklet, provided with a supply of checks, used to maintain accurate records of all checking account transactions. |
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Time deposit |
a savings deposit at a financial institution, remains on deposit for a longer time than a demand deposit. |
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Debit cards |
specially coded plastic cards used to transfer funds from a customer's bank account to the recipient's account to pay for goods or services. |
