1099-INT
the form issued by all payers of interest incomes to investors at
year’s end. Form 1099-INT breaks down all types of interest income and
related expenses. Payers must issue Form 1099-INT for any party to
whom they paid at least $10 of interest during the year
1099-R
an IRS form with which an individual reports his/her distributions
from annuities, profit-sharing plans, retirement plans, IRAs, insurance
contracts and/or pensions
529 Plan
a tax-advantaged investment vehicle in the United States
designed to encourage saving for the future higher education expenses of
a designated beneficiary
After-Tax Return
the return from an investment or business activity after
taxes are subtracted
Form 1040
the standard IRS form that individuals use to file their annual
income tax returns
Internal Revenue Service (IRS)
the U.S. government agency authorized
to collect federal income taxes and enforce tax laws
Marginal Tax Rate
the amount of tax paid on an additional dollar of income
Tax Accounting
the method of accounting that focuses on tax issues including all activities related to filing tax returns and planning for future
tax obligations
W-2
the form that an employer must send to an employee and the IRS at
the end of the year. The W-2 Form reports an employee’s annual wages
and the amount of taxes withheld from his/her paycheck
W-2G
this form is used to report income and withholding that is related to
a taxpayer’s gambling winnings
W-4
employee’s Withholding Allowance Certificate, is used by employers
to determine the correct amount of tax withholding to deduct from
employees’ wages
Accelerated Deprecation
a system used for computing the depreciation
for some assets in a way that they depreciate faster years in the early
years of the acquisition
Asset
something of value (ex: cash, property, supplies, accounts
receivable)
Accounts Payable
money which you owe to an individual or business for
good or services that have been received but not yet paid for
Accounts Receivable
money owed to your business for goods or
services delivered but not yet paid for
Auditor
an individual who inspects and verifies the accuracy of a company’s operation and/or financial records
Audit
an examination of accounting/financial documents by a licensed
professional to determine if they are accurate, consistent, and in
compliance with set rules and regulations
Balance Sheet
an itemized statement that lists the total assets and total liabilities of a given business to portray its net worth at a given moment in
time
Chart of Accounts
a list of account names and numbers in a company’s ledger
Consumer Price Index
the government’s main way to measure inflation
Current Ratio
found by dividing the current assets by current liabilities. A
high current ratio indicates the business has sufficient current assets to
pay its current liabilities
Depreciation
a noncash expense that reduces the value of an asset. This decrease in value is may be attributed to age or wear and tear on the
item
Financial Position
where an enterprise stands financially, which is conveyed through a firm’s financial statements
Financial Analysis Applications
computer applications that can provide
insight into virtually any area of a financial statement
