Business Finance Final Fall 24

Front

What is the formula to calculate net income?

Back

Net Income = Gross Income - Total Deductions

Front

What is the sunk cost fallacy?

Back

The sunk cost fallacy is the tendency to continue an endeavor once an investment in money, effort, or time has been made, even if it is no longer beneficial.

Front

What are standard deductions?

Back

Standard deductions are fixed amounts that reduce the income on which you are taxed, automatically withdrawn from your paycheck.

Front

What is a check register?

Back

A check register is a record of all transactions in a bank account, including deposits, withdrawals, and a running balance.

Front

How do you calculate earnings for a piecework job?

Back

Earnings = (Base Pay for first units) + (Additional Pay for units over base) * (Number of additional units).

Front

What is gross income?

Back

Gross income is the total income earned before any deductions or taxes are taken out.

Front

What are payroll taxes?

Back

Payroll taxes are taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay their staff.

Front

What is the purpose of health insurance deductions?

Back

Health insurance deductions are amounts taken from an employee's paycheck to cover health insurance premiums.

Front

If Cameron assembles 237 airplanes, how much does he earn?

Back

Cameron earns $98.49.

Front

What is the endowment effect?

Back

The endowment effect is the psychological phenomenon where people assign more value to things merely because they own them.