Personal Finance Ch. 7 & 8: Vocab

The person who creates and signs a promissory note is called the _____.

maker

Expenses that can be subtracted from gross income are called _____.

Itemized deductions

Amounts of money owed to others, also known as debts, are called _____.

Liabilities

The word _____ means legally collectible.

Negotiable

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 you subtract your debts from the total amount of things you own, the difference is known as _____.

Net worth

When a document is _____, the signature is verified by a notary public.

Notarized

The person to whom a negotiable instrument is made payable is called the _____.

Pager

A tax that increases in proportion to increases income is known as a(n) _____ tax.

Progressive

A type of tax for which the rate stays the same regardless of income is called _____.

Proportional tax

Money collected by the gov't from various sources is known as _____.

Revenue

All the money you receive is either _____, saved, or invested.

Spent

A(n) _____ program organizes data in columns and rows and performs calculations using the data.

Spreadsheet.

In order to avoid itemizing deductions, a person may elect to take the _____, which is a flat amount.

Standard deduction

A(n) _____ is an amount subtracted directly from tax owed.

Tax credit

To intentionally fail to pay taxes owed is to commit a serious crime called _____.

Tax evasion

Money earned by individuals that is subject to taxation is called _____.

Taxable income

Expenses that may change according to needs and short-term goals are called _____ expenses.

Variable

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(n) _____ is a statement about a product's qualities or performance that the seller assures the buyer are true.

Warranty

An orderly program for spending, saving, and investing the money you receive is known as a(n) _____.

Financial plan

Expenses that remain constant and cannot be easily changed or removed from a budget are called _____ expenses.

Fixed

When all sources of taxable income are added together, the total is called _____ income.

Gross

An administrative agency of the federal gov't that collects taxes and enforces tax laws is the _____.

IRS (Internal Revenue Service)

Unwritten agreements, often called _____ contracts, are created by the actions or conduct of someone.

Implied

Money paid to a former spouse (which is taxable income) for that person's support is called _____.

Alimony

Items of value that a person owns are called ______.

Assets

An examination of tax returns by the IRS is called a(n) _____.

Audit

A(n) _____ is an organized plan whereby you match your expected income with expenses and savings.

Budget

When income exceeds expenses, the difference is called a(n) _____.

Cash surplus

Money paid to a former spouse (which isn't taxable income) for the support of dependent children is called_____.

Child support

A(n) _____ is a person who promises to pay the debt of another person.

Co-signer

_____ are persons who are legally able to give sane and intelligent consent and are legally capable of entering into contracts.

Competent(s)

Money in this country is collected from citizens and redistributed according to priorities determined by _____.

Congress

Anything of value exchanged as a part of a contract is called _____.

Consideration

A legally enforceable agreement between two or more parties to do or not to do something is a(n) _____.

Contract

A computer program that organizes data for easy search and retrieval is a(n) _____.

Database

Money you have to spend as you wish--after all required taxes and deduction--is known as _____.

Disposable income

A(n) _____ tax allows a higher-income person to pay a lower percentage of income in taxes than a lower-income person.

Excise

An amount that can be subtracted from your income for each person who depends on your income to live is a(n) _____.

Exemption

The amount remaining when adjustments are subtracted from gross income is called _____.

Adjusted gross income