Unit 3 Vocabulary Flashcard

Front

What is earned income?

Back

Money received from work or services.

Front

What is appreciation?

Back

Appreciation is the recognition of value or worth, or an increase in value over time.

Front

What is depreciation?

Back

Depreciation is the reduction in the value of an asset over time due to wear and tear, obsolescence, or age.

Front

Grace received a payment from the shares she owns in a company. What type of income is this?

Back

Dividend income is the income earned from owning shares in a company, distributed as dividends.

Front

Henry owns a small apartment building and rents it out to tenants. What is rental income?

Back

The income generated from leasing out property.

Front

What is net income?

Back

Net income is the total profit after all expenses are deducted from revenue.

Front

What is the W2?

Back

W-2 form is a tax document reporting wages and tax withholdings.

Front

What is Homeowners Insurance?

Back

Homeowners insurance protects against damage to a home, its contents, and provides liability coverage.

Front

What are Retirement Plans?

Back

Retirement plans are financial arrangements that provide income after retirement.

Front

What is health insurance?

Back

Health insurance is a financial arrangement that covers medical expenses.