Ch 7, 25, 26 Flashcards Preview

Consumer Ed > Ch 7, 25, 26 > Flashcards

Flashcards in Ch 7, 25, 26 Deck (33):
1

examination of tax returns

audit

2

larger share kf income amount of incrome grows (federal income tax)

prgressive taxes

3

smaller share of income as amount of income grows (sales)

regressive taxes

4

incoming funds to the govt

revenue

5

tax rates applied to income ranges

tax brackets

6

willful failur to pay taxes

tax evasion

7

all citizens are expected to prepare and file tax returns of theor own without force

voluntary compliance

8

adjustment subtracted from gross income

adjusted gross income

9

person who lived woth you and for whom you pay more than hald of their living expenses

dependent

10

amount you may subtract from income for each person who depends on your income to live

exemption

11

describes tak filing group based on martial status

filing status

12

taxable income you recieve

gross income

13

expenses you can subtract from adjusted gross income to determin taxable income

itemized deductions

14

stated amiunt you may subtract from adjusted gross income instead of itemizin your deductions

standard deductions

15

amount subtracts directly from the tax owed

tax credit

16

income which you will pay tax

taxable income

17

sheet you would file if you earn less than 100k and take more deductions

1040 A

18

single/married filling jointly and claim no dependents and income is less than 100k

1040 EZ

19

result in gain or loss due to changing economic conditions

economic risk

20

putting policy holder back in same finacial condition they were in before the loss

indemnification

21

any financial interest in life or property (if harmed) insured would suffer financially

insurable interest

22

pure risk fsced by large number of people and amount of loss can be predicted

insurable risk

23

chance of a loss may occur when errors/actions result in injuries

insurance liability risk

24

chance of loss involving your income and standard of living

personal risk

25

cost (usually monthly) of insurance policy

premium

26

chance of loss/harm to personal/real property

property risk

27

chance of loss woth no chance of gain

pure risk

28

may result in gain or loss

speculative risk

29

specified amount of a loss that you must pay

deductible

30

understanding types of risk you will face and their potential consequences

risk assessment

31

process of accepting consequences of risk

risk assumption

32

lowers chance for losss by not doing activity that could result in the loss

risk avoidance

33

orgainized strategy for controlling financial loss from. pure and insurable risk

risk management