Accounting
This financial statement summarizes a company's revenues and expenses over a specific period of time.
What is an income statement?
The federal agency responsible for collecting taxes and enforcing tax laws in the United States.
What is the Internal Revenue Service (IRS)?
The branch of economics that studies the behavior of individual households and firms.
What is microeconomics?
The process of systematically setting aside money for future use.
The type of insurance that provides coverage for a specific period and pays a death benefit if the policyholder dies during that period.
What is term life insurance?
The process of allocating the cost of an asset over its useful life.
What is depreciation?
This tax is levied on the income earned by corporations.
What is the corporate income tax?
This economic system is characterized by government ownership of the means of production and central planning.
What is socialism?
The concept that states a dollar today is worth more than a dollar in the future.
What is time value of money?
This financial institution primarily serves individuals and small businesses in a local community, offering services such as savings accounts and loans.
What is a community bank?
The financial statement that shows a company's assets, liabilities, and equity at a specific point in time.
What is a balance sheet?
The tax imposed on the transfer of property by one individual to another during their lifetime.
What is the gift tax?
The total value of all goods and services produced by a country in a specific time period.
What is gross domestic product (GDP)?
The measure of how much the price of a security fluctuates is represented by this term.
What is volatility?
The comprehensive evaluation of an individual's current and future financial state.
This accounting ratio measures a company's ability to cover its short-term obligations with its short-term assets.
What is a current ratio?
This form is used by employers to report wages paid to employees and taxes withheld from their pay.
What is Form W-2?
The rate at which the general level of prices for goods and services is rising.
What is the inflation rate?
This financial metric represents the profitability of a company by comparing its net income to shareholders' equity.
What is return on equity?
The process of combining several loans or liabilities into one larger loan.
What is debt consolidation?
The process of examining financial statements and expressing an opinion on their fairness.
What is an audit?
The tax levied on the transfer of certain assets, such as stocks and real estate.
This economic concept refers to the ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than others.
What is comparative advantage?
The systematic measure of an investment's risk in relation to the market.
The interest rate that a central bank charges commercial banks for short-term loans.
What is the discount rate?