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Test 1 | FINA 369 - PERSONAL FINANCE, Quizzes of Business Finance

Class: FINA 369 - PERSONAL FINANCE; Subject: Finance; University: University of South Carolina - Columbia; Term: Fall 2011;

Typology: Quizzes

2010/2011

Uploaded on 09/21/2011

devg22
devg22 🇺🇸

8 documents

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Download Test 1 | FINA 369 - PERSONAL FINANCE and more Quizzes Business Finance in PDF only on Docsity! TERM 1 Standard Deduction DEFINITION 1 a blanket deduction that depends on the tax payers filing status, age, and vision and can be taken by a tax payer whose total itemized deduction are too small TERM 2 itemized deductions DEFINITION 2 personal expenditures taht can be deducted from AGI (adjustable gross income) when determining taxable income TERM 3 Capital Gain DEFINITION 3 is taxed on Schedule D things you earn money by selling from investing in capital assets(stocks, real state etc) TERM 4 capital gain on principal residence DEFINITION 4 -single tax payers can exclude from income the first 250K of gain and 500K fro married pple. -Owned for at least 2 years of the 5 yrs prior to the sale-only one sale every two years - loss in principal residency not deductable TERM 5 AGI DEFINITION 5 Adjusted gross income= Gross income - all allowable adjustments to income (tax deductible expenses + retirement plan contributions) TERM 6 Dependents DEFINITION 6 children or othere relatives earning less than a stipulated level of income. -has to have a relationship or memeber of household-support(more than 1/2)-Gross income: <19 or under 24 and full time student TERM 7 Marginal Tax Rate DEFINITION 7 the tax rate you pay on the net dollar of a taxable income TERM 8 Filling status DEFINITION 8 It is based on your maritial status and family situation on the last day of your tax year (12/31)-there is 5 statuses: single, married filling jointly, married filling separately, head of household and qualyfing widow TERM 9 head of household DEFINITION 9 pays more than 1/2 of the cost of keeping up a home for himself/her and an eligible dependent child or relative TERM 10 qualifying widow/ surviving spose DEFINITION 10 person whose spose died withing 2 yrs of the tax yr and who supports a dependet child may use a joint return tax rate at its highest deduction TERM 21 1040S DEFINITION 21 stimated TERM 22 1040X DEFINITION 22 Amendedis to fix your tax returnafter you have filled it..tuviste que haber pedido una extension TERM 23 Real assets DEFINITION 23 big stuff that doesnt move such as land and what ever is attached to it such as a house TERM 24 liquid assets DEFINITION 24 cash or things that can be converted in cash quickly TERM 25 Personal Assets DEFINITION 25 Jewrly, furniture etc TERM 26 Liabilities DEFINITION 26 What a person owes TERM 27 Solvency DEFINITION 27 is to have a positive networth TERM 28 insolvency DEFINITION 28 is to have a negative net worth TERM 29 Discretionary Cost (variable) DEFINITION 29 entetaiment eating out TERM 30 Progressive taxes DEFINITION 30 it is in brackets so for first30K is 15% and the for 31K, 1K is at 28% TERM 31 Car Loans DEFINITION 31 Can be taken from credit union, bank or car dealeships TERM 32 Financial Planner Regulation DEFINITION 32 There are no regulations for this TERM 33 Negative amortization DEFINITION 33 if payment of mortgage instead of going down is going up TERM 34 Loan to value Ratio DEFINITION 34 = $ loan / total cost of good if house 10,000down payment 1000LVR= 9,000/10000 = 90% TERM 35 Discounts Points DEFINITION 35 each point means 1% of the interest loan, they are tax deductable inmidiatly on schedule A. this is just for first time loan.if later the loa is refinance and pay 1K in points and loan for 30 yrs is 1K/30 = 33.33 deductable that year TERM 46 CDs DEFINITION 46 Certificate of deposit funds must remain on deposit for a specified period of time. there can be withdrawls but there will be penalties. TERM 47 Annual percent yield DEFINITION 47 Annual percent yield: APY is notable because it takes compounding into account. In very simple terms, compounding means making earnings on your earnings. This means that the quoted APY is telling you how much youre really making on your money. TERM 48 Truth in savings Act DEFINITION 48 is a United States federal law that was passed on December 19, 1991. It was part of the larger Federal Deposit Insurance Corporation Improvement Act of 1991 and is implemented by Regulation DD. It established uniformity in the disclosure of terms and conditions regarding interest and fees when giving out information on or opening a new savings account. On passing this law, the US Congress noted that it would help promote economic stability, competition between depository institutions, and allow the consumer to make informed decisions. TERM 49 APC DEFINITION 49 Average propensity to Consume: how much % of income you spent TERM 50 Standard of Living DEFINITION 50 the necessities, comforts and luxuries we have or desire TERM 51 Goal Setting DEFINITION 51 a systematic process that considers important elements of an individuals financial affairs in order to fulfill financial goals. TERM 52 utility DEFINITION 52 the amount of satisfaction received from purchasing certain types of quantities of goods and services TERM 53 inflation DEFINITION 53 is when the general level of prices increases over time. it is measure by consumer price index CP TERM 54 Tangible assets DEFINITION 54 Physical assets, such as real state and auto mobiles, that can be held for either consumption or investment purposes. TERM 55 Liability DEFINITION 55 something you owe measured in debt. TERM 56 Fair market value DEFINITION 56 the actual value of an asset, or the price for which it can reasonably be expected to sell in the open market. TERM 57 Balance Sheet DEFINITION 57 describes your financial position- the assets you hold less the debts you owe, equal your net worth- at a given point in time TERM 58 net worth DEFINITION 58 the amount of actual wealth= total assets - total liabilities TERM 59 income statement DEFINITION 59 statement which includes earnings received as wages, salaries, self-employment income, bonuses, and commision, interests and dividends recieved for savings. TERM 60 Surplus/ deficit DEFINITION 60 a cash surpluss is an excess amount of income over expenses that results in increased net worth. Deficit is the decreased of net worth