VA_FA_Vocabulary

Yield

• The total amount of money invested in a project.

• The income generated by an investment, often expressed as a percentage.

• The initial cost of an investment before any returns.

• The market value of an investment at a given time.

W-2 Form

• A tax form employers send to employees detailing income and taxes withheld.

• A form used to report self-employment income.

• A document for claiming tax deductions on personal expenses.

• A form for reporting capital gains and losses.

Tax Bracket

• A range of income subject to a specific income tax rate.

• A fixed amount of tax paid regardless of income.

• A tax rate that applies to all income levels equally.

• A category for tax deductions based on expenses.

Inflation

• The decrease in prices of goods and services over time, increasing purchasing power.

• The increase in prices of goods and services over time, reducing purchasing power.

• The stability of prices of goods and services over time, maintaining purchasing power.

• The fluctuation of prices of goods and services, having no effect on purchasing power.

semi-monthly pay

• Employees are paid once a month, resulting in 12 paychecks per year.

• Employees are paid every week, resulting in 52 paychecks per year.

• Employees are paid twice a month, usually on the 1st and 15th or the 15th and last day of the month, resulting in 24 paychecks per year.

• Employees are paid every two weeks, resulting in 26 paychecks per year.

Escrow

• A legal document that outlines the terms of a contract.

• A third-party account holding funds or assets until specific conditions are met.

• A type of investment that guarantees returns.

• A method of transferring ownership of property.

Discount

• A reduction in the price of goods or services.

• An increase in the price of goods or services.

• A type of tax applied to luxury items.

• A fee charged for late payments.

Insurance

• A type of investment that guarantees high returns.

• A contract providing financial protection against potential loss or risk.

• A government program that provides free healthcare.

• A policy that covers only natural disasters.

commission

• A type of salary paid to employees regardless of performance.

• The compensation paid to an employee after completing a task such as selling a certain number of products or services.

• A bonus given to employees for exceptional performance.

• A fixed amount paid to employees for their time worked.

Gross Income

• Total income earned before deductions or taxes.

• Income after all deductions and taxes are applied.

• Income generated from investments only.

• Total income earned from a single source.