Term
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Definition
| the recording, classifying, summarazing, and interpreting of financial events and transactions to provide management and other interested parties the information they need to make good decisions. |
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Term
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Definition
| accounting used to provide information and analysis to managers inside organization to assist them in decision making. |
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Term
| Certified Management Accountant (CMA) |
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Definition
| a professional acocuntant, who has met certain educational and experience requirements, passed a qualifying exam, and been certified buy the Institute of Certified Management Accountants. |
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Definition
| accounting information and analyses prepared for people outside the organization. |
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Term
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Definition
| a yearly statement of the financial condition, profess and expectations of an organization. |
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Definition
| an accountant who works for a single firm, government agency, or nonprofit organization. |
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Definition
| an accountant who provides accounting services to individuals or businesses on a fee basis. |
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| Certified Public Accountant (CPA) |
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Definition
| an accountant who passes a series of examinations established by the American Institute of Certified Public Accountants (AICPA) |
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Definition
| the job of reviewing and evaluating the information used to prepare a company's financial statement. |
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Definition
| an evaluation and unbiased opinion about the accuracy of a company's financial statements. |
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| Certified Internal Auditor (CIA) |
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Definition
| an accountant who has a bachelor's degree and two years of experience in internal auditing, and who passed an exam administered by the Institute of Internal Auditors. |
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Definition
| an accountant trained in tax law and responsible for preparing tax returns or developing tax strategies. |
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| Government and Not-For-Profit Accounting |
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Definition
| accounting system for organizations whose purpose is not generating profit but serving rate payers, taxpayers, and others according to a duly approved budget. |
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Term
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Definition
| a six-step procedure that results in the preparation and analysis of the major financial statements. |
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Term
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Definition
| the recording of business transactions. |
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Definition
| the record book or computer program where accounting data are first entered. |
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Term
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Definition
| the practice of writing every business transaction in two places. |
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Term
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Definition
| a specialized accounting book or computer program in which information from accounting journals is accumulated into specific categories and posted so that managers can final all the information about one account in the same place. |
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Definition
| a summary of all the financial data in the account ledgers that ensures the figures are correct and balanced. |
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Definition
| a summary of all the transactions that have occurred over a particular period. |
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Term
| What are the key parts of a Financial Statement? |
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Definition
Balance Sheet
Income Statement
Statement of Cash Flows |
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Term
| Fundamental Accounting Equation |
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Definition
| Assets = Liabilities + Owners Equity |
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Term
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Definition
financial statement that reports a firm's financial condition at a specific time and is composed of three major accounts:
Assets
Liabilities
Owners Equity |
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Term
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Definition
| economic resources (thing of value) owned by a firm. |
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Definition
| the ease with which an asset can be converted to cash. |
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| items that can or will be to cash within one year. |
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Definition
| assets that are relatively permanent, such as land, buildings, and equipment. |
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Definition
| long-term assets that have no real physical form but do have value. |
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Definition
| what the business owes to others. |
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Term
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Definition
| current liabilities are bills the company owes to others for merchandise or services purchased on credit but not yet paid for. |
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Term
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Definition
| short-term or long-term liabilities that a business promises to repay by a certain date. |
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Term
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Definition
| Long-term liabilities that represent money lent to the firm that but be paid back. |
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Definition
| the amount of business that belongs to the owners minus the liabilities owed by the business. |
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Definition
| the accumulated earning from a firm's profitable operations that were reinvested in the business and not paid out to the stockholders in dividends. |
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Definition
| the financial statement that shows a firm's profit after costs, expenses, and taxes. |
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Definition
| Revenue left over after all costs and expenses, including taxes, are paid. |
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Definition
| a measure of the cost of merchandise sold or cost of raw materials and supplies used for producing items for resale. |
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Definition
| how much a firm earned by buying and selling merchandise. |
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Definition
| costs involved in operating a business, such as rent, utilities, and salaries. |
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Definition
| the systematic write-off of the cost of a tangible asset over its estimated useful life. |
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Term
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Definition
| financial statement that reports cash receipts and disbursements related to a firm’s three major activities: operations, investments, and financing. |
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Definition
| the difference between cash coming in and cash going out of a business. |
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Definition
| the assessment of a firm's financial interpretations of financial rations developed from the firm's financial statements. |
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Term
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Definition
| (Current Assets)/(Current Liabilities) |
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| Acid-Test Ratio (Quick Ratio) |
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Definition
| (Cash +Accounts Recievable+Marketing Sec.)/(Current Liabilities) |
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Term
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Definition
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Definition
| (Net Income After Tax)/(Number of Shares in Stock) |
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Definition
| (Net Income after Tax)/Sales |
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Definition
| (Net Income After Tax)/Equity |
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Term
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Definition
| the function of business that acquires funds for the firm and manages those funds. |
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Term
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Definition
| the job of managing firms resource so it can meet its goal and objectives. |
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Definition
| Managers who examine fianncial data prepared by accountants and recommend strategies for improving the financial performance of the firm. |
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Term
| What are 3 common reasons a firm fails? |
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Definition
Undercapitalization
Poor control over cash flow
Inadequate expense flow |
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Term
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Definition
| forecast that predicts revenues, costs, and expenses for a period of one year or less. |
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Term
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Definition
| forecast that predicts the cash inflows and outflows in future periods, usually months or quarters. |
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Term
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Definition
| Forecast that predicts revenues, costs, and expenses for a period longer than 1 year, and sometimes as far as 5 or 10 years into the future. |
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Definition
| a financial plan that sets forth management's expectations, allocates the use of specific resources throughout the firm. |
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Definition
| a budget that highlights a firm's spending plans for major asset purchases that often require large sums of money. |
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Definition
| a budget that estimates cash inflows and outflows during a particular period like a month or a quarter. |
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Term
| Operating (or master) Budget |
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Definition
| the budget that ties together the firm's other budgets and summarizes its proposed financial activities. |
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Term
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Definition
| a process in which a firm periodically compares its actual revenues, costs, and expenses with its budget. |
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Term
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Definition
| Mmajor investments in either tangible long-term assets such as land, building, and equipment or intangible assets such as patents, trademarks, and copyright. |
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Definition
| funds raises through various forms of borrowing that must be repaid. |
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Definition
| money raised through various forms of borrowing that must be repaid. |
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Definition
| funds needed for a year or less. |
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Term
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Definition
| funds needed for more than a year (usually 2-10 years) |
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Definition
| the practice of buying goods and services now and paying them later. |
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Term
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Definition
| a written contract with a promise to pay a supplier a specific sum of money at a definite time. |
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Definition
| a loan backed by collateral, something valuable such as property. |
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Definition
| a loan that doesn't require any collateral. |
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Term
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Definition
| a given amount of unsecured short-term funds a bank will lend to a business provided the funds are readily available. |
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Term
| Revolving Credit Agreement |
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Definition
| a ling of credit that's guaranteed but usually comes with a fee. |
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Term
| Commercial Finance Companies |
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Definition
| organizations that make short-term loans to borrowers who offer tangible assets as collateral. |
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Term
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Definition
| the process of selling accounts receivable for cash. |
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Term
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Definition
| unsecured promissory notes of $100,000 and up that mature (come due) in 270 days or less. |
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Term
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Definition
| a promissory note that requires the borrower to repay the loan in specified installments. |
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Term
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Definition
| the principle that the greater the risk a lender takes in making a loan, the higher the investment rate required. |
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Term
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Definition
| the terms of agreement in a bond issue. |
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Term
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Definition
| a bond issued with some form of collateral. |
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Term
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Definition
| a bond backed only by the reputation of the issuer; also called a debenture bond. |
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Term
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Definition
| money that is invested in new or emerging companies that are precieved as having great profit potential. |
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Term
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Definition
| Raising needed funds through borrowing the increase a firm's rate of return. |
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Term
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Definition
| the rate of return a company must earn in order to meet the demands of its lenders and expectations of its equity holders. |
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Term
| Initial Public Offering (IPO) |
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Definition
| the first public offering of a corporations stock. |
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Term
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Definition
| specialists who assist in the issue and sale of new securities. |
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Term
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Definition
| larger organizations - such as pension funds, mutual funds, and insurance companies - that invest their own funds. |
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Term
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Definition
| an organization whose members can buy and sell (exchange) securities for companies and individual investors. |
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Term
| Over-The-Counter (OTC) Market |
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Definition
| exchange that provides a mean to trade stocks not listed on the national exchanges. |
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Term
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Definition
| a nationwide electronic system that links dealers across the nation so that they can buy and sell securities electronically. |
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Term
| Securities and Exchange Commission (SEC) |
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Definition
| federal agency that has responsibility for regulating the various stock exchanges. |
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Term
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Definition
| a condensed version of economic and financial information that a company must file with the SEC before issuing stock; the prospectus must be sent to prospective owners. |
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Term
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Definition
| shares of ownership in a company. |
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Term
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Definition
| evidence of stock ownership that specifies that name of the company, the number of shares it represents, and the type of stock being issued. |
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Term
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Definition
| part of a firm's profits that the firm may distribute to stockholders as either cash payments or additional shares of stock. |
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Term
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Definition
| the most basic form of ownership in a firm; it confers voting rights to share in the firm's profits through dividends, if approved by the firm's board of directors. |
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Definition
| stock that gives its owners preference in the payment of dividends and an earlier claim on assets than common stockholders if the company is forced out of business and its assets sold. |
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Term
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Definition
| a corporate certificate indicating that a person has lent money to a firm (or a government). |
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Term
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Definition
| the exact date the issuer of a bond must pay the principal to the bondholder. |
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Term
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Definition
| the payment the issuer of the bond makes to the bondholders for use of the borrowed money. |
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Term
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Definition
| bonds that are unsecured (i.e., not backed by any collateral such as equipment. |
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Term
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Definition
| a reserve account in which the issuer of a bond periodically retires some part of the bond principal prior to maturity so that enough capital will be accumulated by the maturity date to pay off the bond. |
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Definition
| a registered representative who works as a market intermediary to buy and sell securities for clients. |
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Term
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Definition
| buying several different investment alternatives to spread the risk of investing. |
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Definition
| the positive difference between the purchase price of a stock and its sale price. |
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Definition
| an action by a company that gives stockholders two or more shares of stock for each one they own. |
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Definition
| name for business technology in the 1970s; primarily used to improve the flow of financial information. |
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Term
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Definition
| technology that helps a company do business (i.e. ATMs and voicemail) |
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Term
| Business Intelligence (BI) |
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Definition
| any variety software applications that analyze an organization's raw data and take useful insights from it. |
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Term
| What are the 4 characteristics that make information useful? |
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Definition
1. Quality
2. Completeness
3. Timeliness
4. Relevance |
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Definition
| a company-wide network closed to public access that uses internet-type technology. |
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Definition
| a semiprivate network that lets more than one company access the same information or allows people on different servers to collaborate. |
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| Virtual Private Network (VPN) |
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Definition
| a private data network that creates secure connections, or tunnels, over regular Internet lines. |
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Definition
| provides a continuous connection to the Internet that allows user to send and receive mammoth video, voice, and data files faster. |
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Definition
| runs more than 22,000 times faster than today’s public infrastructure and supports teleimmersion. |
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Definition
| the set of tools that allow people to build social and business connections, share information and collaborate on projects online. |
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Definition
| computer systems that allow personal computers to obtain needed information from databases on a server. |
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Definition
| a process that allows networked computers to run multiple operating systems and programs through a central computer at the same time. |
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Definition
| a form of virtualization which stores a company’s data and applications at off-site data centers accessed over the Internet (the cloud). |
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