2. Credit-the ability of a customer to obtain goods or services before payment, based
on the trust that payment will be made in the future
3. Debit-an entry recording an amount owed, listed on the left-hand side or column
of an account.
4. Interest-money paid regularly at a particular rate for the use of money lent, or for
delaying the repayment of a debt.
5. Gross Pay-An amount of pay, wages, salary, or other compensation before
deductions, such as for taxes, insurance, and retirement.
6. Net Pay-the amount of wages that employees actually take home after deductions
and taxes
7. Fixed Expenses- those that do not fluctuate with changes in production level or
sales volume
8. Variable Expenses-those costs that vary depending on a company's production
volume; they rise as production increases and fall as production decreases
9. Consumable Goods-are capable of being consumed; that may be destroyed,
dissipated, wasted, or spent
10. Durable Goods-goods not for immediate consumption and able to be kept for a
period of time
11. FICA-tax is a United States federal payroll (or employment) tax imposed on both
employees and employers to fund Social Security and Medicare—federal programs
that provide benefits for retirees, the disabled, and children of deceased workers
12. Salary-a fixed regular payment, typically paid on a monthly or biweekly basis but
often expressed as an annual sum, made by an employer to an employee,
especially a professional or white-collar worker
14. Budget- an estimate of income and expenditure for a set period of time
15. Credit Score-a number assigned to a person that indicates to lenders their capacity
to repay a loan
16. Financial Institution- An establishment that focuses on dealing with
financial transactions, such as investments, loans and deposits.
Conventionally, financial institutions are composed of organizations such as banks,
trust companies, insurance companies and investment dealers
17. Mortgage-the charging of real (or personal) property by a debtor to a creditor as
security for a debt (especially one incurred by the purchase of the property), on the
condition that it shall be returned on payment of the debt within a certain period
