Income
The income that self employed people make
What is profit?
Define the decision to be made; explore all alternatives; choose the best alternative; act on the decision; and evaluate the solution or decision.
What are the five steps in systematic decision-making?
Used to analyze income and expenses and to create a plan for achieving financial goals.
What is a budget plan?
A period of rising prices.
What is inflation?
A report containing information used to calculate taxes owed by the taxpayer.
What is a tax return?
A subtraction from gross pay
What is a payroll deduction?
The process of organizing and using resources to achieve predetermined objectives.
What is management?
Show information about the financial status of an individual.
What are Personal financial statements?
The amount that is paid for using money.
What is interest?
The government expects individuals and businesses to voluntarily report all income that is subject to the income tax. Some income, such as wages, is reported by employers.
What is Voluntary compliance?
Income paid as a percentage of sales made by a salesperson
What is commision?
Economic, social, cultural, and technological forces.
Financial influencers
Reflects actual cash inflow and outflow for a budgeting period.
What is a cash flow statement?
The statistical characteristics of a population.
What are demographics?
A Wage and Tax Statement that shows an individual’s earnings and the amounts of taxes withheld from the earned income during the current year.
What is a Form W-2?
Payment and benefits received for work performed
What is compensation?
The worldwide spread and integration of production, markets, communications, and technology.
What is Globalization?
Economic conditions, demographics, culture, and changing technology.
What are financial life factors?
The state of the economy at a given time.
What are economic conditions?
The income an individual receives in a year including both earned and unearned income.
What is gross income?
Gross pay minus payroll deductions
What is net pay
The possession of a body of financial knowledge, a set of basic skills, and the ability to apply knowledge and skills to make informed, responsible financial choices.
What is financial literacy?
A process of choosing a course of action after evaluating available information and weighing the costs and benefits of alternative actions and their consequences.
What is Systematic decision-making?
A period of slow or no economic growth.
What is recession?
Earnings from sources other than work.
What is unearned income?