Term
|
Definition
| the name for the resources used to start and run a business |
|
|
Term
|
Definition
| has the goal of making a profit for its owners |
|
|
Term
|
Definition
| has the goal of providing goods/services to its clients |
|
|
Term
|
Definition
| equals all revenues minus all expenses for a specific period of time |
|
|
Term
|
Definition
| does something for its customers |
|
|
Term
|
Definition
| sells a product to its customers |
|
|
Term
|
Definition
|
|
Term
| financial services companies |
|
Definition
| deal in services related to money |
|
|
Term
|
Definition
| a company with a single owner |
|
|
Term
|
Definition
| a company owned by two or more individuals |
|
|
Term
|
Definition
| a special legal form for a biz in which the biz is a legal entity separate from the owners, it can have a single owner or a large # of owners |
|
|
Term
|
Definition
| the units of ownership in a corporation |
|
|
Term
| stockholders/shareholders |
|
Definition
| the owners of the corporation |
|
|
Term
|
Definition
| a marketplace where buyers and sellers exchange their shares of stock, buying and selling shares of stock can also be done via the internet |
|
|
Term
|
Definition
| the name for a collection of stock exchanges, generally used to designate any place where stock is bought/sold |
|
|
Term
| Securities and Exchange Commission (SEC) |
|
Definition
| the gov agency that monitors the stock market and the financial reporting of the firms that trade in that market |
|
|
Term
|
Definition
| the earnings of a corporation distributed to the owners of the corporation |
|
|
Term
|
Definition
| an owner's investment in a company |
|
|
Term
|
Definition
| the amount of money borrowed |
|
|
Term
|
Definition
| the cost of borrowing money/using someone else's money |
|
|
Term
|
Definition
| the amount the company has earned from providing goods/services to customers |
|
|
Term
|
Definition
| the costs incurred to generate revenue |
|
|
Term
| Generally accepted accounting principles (GAAP) |
|
Definition
| the guidelines for financial reporting |
|
|
Term
| Financial Accounting Standards Board (FASB) |
|
Definition
| the group that sets accounting standards, gets authority from the SEC |
|
|
Term
| Public Company Accounting Oversight Board (PCAOB) |
|
Definition
| group formed to oversee the auditing profession and the audits of public companies, creation was mandated by the Sarbanes-Oxley Act of '02 |
|
|
Term
| International Financial Reporting Standards (IFRS) |
|
Definition
| international guidelines for financial reporting, used in many places around the world |
|
|
Term
| International Accounting Standards Board (IASB) |
|
Definition
| the group that sets international financial reporting standards |
|
|
Term
| Internal Revenue Service (IRS) |
|
Definition
| the federal agency responsible for fed income tax collection |
|
|
Term
| Certified Public Accountant (CPA) |
|
Definition
| someone who has met specific education and exam requirements set up by individual states to make sure that only individuals with the appropriate qualifications can perform audits |
|
|
Term
| notes to the financial statements |
|
Definition
| info provided with the 4 basic statements that describe the company's major accounting policies and provide other disclosures to help external users better understand the financial statements |
|
|
Term
|
Definition
| shows a summary of each element of the accounting equation: assets, liabilities, and shareholders' equity |
|
|
Term
|
Definition
| economic resources owned or controlled by the biz |
|
|
Term
|
Definition
| obligations of the biz; amounts owed to creditors |
|
|
Term
|
Definition
| the owners' claims to the assets of the company, 2 types: contributed capital and retained earnings |
|
|
Term
|
Definition
| the total of all net income amounts minus all dividends paid in the life of the company, NOT the same as cash |
|
|
Term
|
Definition
| year in the life of a biz, may or may not coincide with the calendar |
|
|
Term
| comparative balance sheets |
|
Definition
| balance sheets from consecutive fiscal years for a single company, the ending balance sheet for one year is the beginning of the next |
|
|
Term
|
Definition
| a company's accounting records |
|
|
Term
|
Definition
| shows all revenues minus all expenses for an accounting period; a month, quarter, or year |
|
|
Term
| statement of changes in shareholder's equity |
|
Definition
| starts with the beginning amount of contributed capital and shows all changes during the accounting period, then the statement shows the beginning balance in retained earnings with its changes. the usual changes to retained earnings are the increase due to net income and the decrease due to dividends paid to shareholders. |
|
|
Term
|
Definition
| shows all the cash collected and all the cash disbursed during the period. there are 3 types... |
|
|
Term
| cash from operating activities (type of cash flow) |
|
Definition
| cash transactions that relate to the everyday, routine transactions needed to run a biz |
|
|
Term
| cash from investing activities (type of cash flow) |
|
Definition
| transactions involving the sale and purchase of long-term assets used in the biz |
|
|
Term
| cash from financing activities (type of cash flow) |
|
Definition
| transactions related to how a biz is financed |
|
|
Term
| XBRL (Extensible Biz Reporting Language) |
|
Definition
| a tech that enables firms to report info in a standardized way that makes the data immediately reusable and interactive |
|
|
Term
| single-step income statement |
|
Definition
| groups all revenues together and shows all expenses deducted from total rev |
|
|
Term
| multistep income statement |
|
Definition
| starts with sales and subtracts cost of goods sold to get a subtotal called gross profit on sales, aka gross margin. then, other operating revenues are added and other operating expenses are deducted. a subtotal for operating income is shown before deductions related to nonoperational items and taxes are deducted. then, income taxes are subtracted, leaving net income. |
|
|
Term
|
Definition
| a danger, something that exposes a biz to a potential injury or loss |
|
|
