H&R Block Budget Challenge and Chapter 2 Test
100% Complete And Correct
Net Pay
Amount of income left after taxes and deductions have been taken out.
Gross Pay
the total amount of an employee's earnings before deductions are taken out
Deductible
Amount you must pay before you begin receiving any benefits from your insurance company
Prorate
When you are charged only the amount you will use. For example, when moving into an apartment, you
would not pay the full month's rent if you are moving in after the first of the month. You will pay for the
number of days you will actually be living in the space.
Interest
A sum paid or charged for the use of money or for borrowing money
Compound Interest
interest earned on both the principal amount and any interest already earned
Taxable Income
the earnings on which tax must be paid; total income minus exemptions and deductions
Grace Period
the time between the billing date and the payment due date when no interest is charged
Character
Saving is an exercise in __________
Sinking Fund
Saving money over time for a large purchase
Overdraft Protection
A system used by the bank to keep you from using more money than you have. If you do not have the
correct amount in the account you are trying to use, it will be drafted from a linked account.
Bounced Check
a check that is not honored by a bank and is returned to the payee's bank due to nonsufficient funds
100% Complete And Correct
Net Pay
Amount of income left after taxes and deductions have been taken out.
Gross Pay
the total amount of an employee's earnings before deductions are taken out
Deductible
Amount you must pay before you begin receiving any benefits from your insurance company
Prorate
When you are charged only the amount you will use. For example, when moving into an apartment, you
would not pay the full month's rent if you are moving in after the first of the month. You will pay for the
number of days you will actually be living in the space.
Interest
A sum paid or charged for the use of money or for borrowing money
Compound Interest
interest earned on both the principal amount and any interest already earned
Taxable Income
the earnings on which tax must be paid; total income minus exemptions and deductions
Grace Period
the time between the billing date and the payment due date when no interest is charged
Character
Saving is an exercise in __________
Sinking Fund
Saving money over time for a large purchase
Overdraft Protection
A system used by the bank to keep you from using more money than you have. If you do not have the
correct amount in the account you are trying to use, it will be drafted from a linked account.
Bounced Check
a check that is not honored by a bank and is returned to the payee's bank due to nonsufficient funds
