Taxes
Tax imposed on goods and services based on value
Sales tax
Money received for supplying goods and services to customers
Revenue
A measure of a given investment's profitability
Return on Investment
Tax structure in which those who earn more are required to pay a higher percentage of income in taxes
Progressive Tax System
Expenses that stay the same (mortgage, rent, utilities, property taxes, etc.)
Fixed Expenses
Relationship between risk and return
Tax imposed on the profit made by an investor when their investment is sold
Capital Gains Tax
The order in which assets are listed on a balance sheet
In order of liquidity
The profit made when an investor sells their investment
Capital Gains
Tax structure in which everyone pays the same tax rate, regardless of income
Proportional/flat tax system
The assets of a company over which an owner has rights
Owner's Equity
Low risk savings account that holds a fixed amount of money for a fixed period of time
Certificates of deposit
Tax imposed on specific goods and services based on quantity rather than value (fuel, tobacco, and alcohol)
Excise Tax
The fundamental accounting equation
Assets = Owner's Equity + Liabilities
Formula for ROI
(Current value - cost of investment) / cost of investment