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Tax accounting is the branch of accounting concerned with tax-related issues such as
determining the tax liability of the business, and preparation of tax returns for individuals,
companies, and other types of organisations.

Taxable income the amount of income used to calculate the taxes owed by an individual

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or a company.
Trade discount is the reduction in price a manufacturer/wholesaler gives a wholesaler/
retailer when they buy a product or group of products. A trade discount is offered as
a certain percentage that the offerer (manufacturer or wholesaler) is willing to reduce
from its list price to benefit the wholesalers or retailers.
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Underinsurance is when the amount insured is not enough to cover the cost of repairing,

replacing or rebuilding the items listed in the insurance policy. The underinsurance leaves

the policyholder responsible to meet the shortfall.

Student’s Book Form Five
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