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32 Cards in this Set
- Front
- Back
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Accounting
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The recording,classifying,summarizing and interpreting financial events of a company.
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Managerial accounting
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Accounting used to provide information to managers within the company.
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Financial accounting
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Accounting information and analyses prepared for people outside the company.
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Auditing
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The job of reviewing and evaluating the records used to prepare the companies financial records.
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CPA
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Accounting to individuals on a fee basis. Certified public accounting.
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Balance sheet
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owns vs. owes
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Income statement
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How much revenue was earned less COGS etc....
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Statement of Cash flows
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how money is coming in and going out.
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Accounting equation
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Assets= liabilities + Owners equity
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Assets
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things owned by the firm.
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liabilities
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what the business owes to others
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owners equity
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the amount of the business that belongs to the owners minus the liabilities owed by the business.
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finance
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The function in a business that acquires funds for the firm and manages those funds within the firm.
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financial managers
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Managers who make recommendations to top executives regarding strategies for improving the financial strength of a firm.
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Short term forecasting
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forecast that predicts activity for a period of one year or less
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Long term forecasting
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forecast that predicts activity for a period of a year or longer sometimes up to five years.
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Cash flow forecast
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forecast that predicts cash inflows and outflows in future periods.
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Budget
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a financial plan that sets forth managements expectations and allocates the use of specific resources throughout the firm based on the budget.
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capital budget
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A budget that highlights the firms spending plans for major assets.
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cash budget
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A budget that estimates the firms cash inflows and outflows that a firm can use to plan for any cash shortages.
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Master (operating) budget
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Ties all the firms other budgets together.
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Financial control
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A process in which a firm compares actual results with the budget.
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Debt financing
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funds raised through various forms of borrowing, must be repayed.
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Equity financing
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Funds raised through sale of ownership in the firm.
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Leverage
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Raising the needed funds through borrowing to increase the firm's rate of return.
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Money
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1.Store of Value-holds value over time.
2.Unit of Account-A measure of value,enables buyers to compare prices. 3.Medium of Exchange-Widely accepted. |
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Barter
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exchange
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M1 money supply
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Money that can be accessed quickly and easily(coin,paper,checks etc..)
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Monetary policy/controlled by the federal reserve system.
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uses three activities to control money:
1)Discount rate 2)Open market operations 3)Required reserve |
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Primary responsibility of the fed
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Control the money supply
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How many federal reserve banks
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12
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Monetary Policy
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control intrest rates using their tools.
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