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2.04 Vocabulary
Income and Expense Statement
Term | Definition |
---|---|
Commissions | an order for someone to do something and get paid |
Tips | a small sum of money given to someone for performing a service |
Bonuses | an amount of money added to wages on a seasonal basis |
Tax refunds | the govt returning excess taxes paid by a single person |
Interest earned | the average amount of interest earned on an insurer's investments after investment expense and before income taxes |
Investment earnings | income coming from interest payments |
Sales of assets | the compensated distribution of valuable property that can be tangible or intangible |
Interest | money from savings |
Capital | money from investments |
Gross income | wages or salary before deductions |
Financial aid | scholarships from non-government sources |
Child support | court-ordered payments, typically made by a noncustodial divorced parent, to support one's minor child or children |
Federal grants | scholarships/grants from government sources |
Social welfare | government programs such as social security and worker's compensation |
Loan | money from others |
Expense | money spent |
Income | money recieved |
Income and Expense Statement | Lists and summarizes income and expense transactions that have taken place over a specific period of time, usually a month or a year |
Insurance | a product that transfers risk from an individual to an insurance company or organization |
Mortgage | a payment, usually monthly, applied to the balance of a home loan used when purchasing housing |
Net gain | when income is greater than expenses |
Net income | take home pay |
Net loss | when expenses are greater than income |
Savings | The portion of current income not spent on consumption |