Chapter 2 Glossary
A fixed sum of money that occurs annually.
Items that one owns.
A financial statement that describes a persons financial position at a given point in time.
A detailed financial report that lo
Mary Watson's tax calculations are as follows (assuming a 2011 tax year). Look on page
2 of the sample Form 1040 shown in the text. The standard deduction amounts are shown
in the top left margin, and the exemption amount is given on line 42. Mary is s
Chapter 3 Glossary
adjusted gross income (AGI)
The amount of income remaining after subtracting all allowable adjustments to income from
adjustments to (gross) income
Allowable deductions from gross income, including certain employee, person