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86 Cards in this Set

  • Front
  • Back
broadband technology
offers users a continuous connection to the internet and allows them to send and receive mammoth files that include voice, video, and data much faster than before
pieces of information sent by a website over the internet to a web browser that hte browser is expected to save and send back to the server whenver the user returns to the website (remembers your name + password)
data processing
data are raw, unanalyzed and unorganized facts and figures (primarily those to improve the flow of financial info)
a semiprivate network, that uses internet technology and allows more than one company to access the same info or allows people on different servers to collaborate
information systems
atm, voicemail
information technology
role is to change business, allows businesses to deliever good and service whenever it is convienent to the costumer
internet 2
runs more than 22,000 times faster than today's public infrastructure and supports heavy duty applications such as video conferencing
a company-wide network, close to the public, that uses internet type of technology
network computing system (client/server computing)
personal computers (clients) can obtain info from huge databases in a central computer (server)
public domain software (freeware)
software free for taking
copywrited software but distributed to potential customers free of charge (user pays fee if they decide to use it)
accessibility through technology that allows businesses to be conducted independently of location
piece of programming code inserted into other programming to cause some unexpected, undesirable effect
the recording, classifying, summarizing, and interpreting of financial events and transactions to provide management and other interested parties the info they need to make good decisions
accounting cycle
6 step procedure that result in the preparation and analyisis of the major financial statements
1. analysing-categorizing documents
2. putting info into journals
3. postting info into ledgers
4. prepare trial balance
5. prepare financial statements (balance sheet, income statement, cash flow)
6. analyze financial statements and evaluate financial condition of firm
annual report
yearly statement of financial condition, progree, and expectations of an organization
economic resources (things of value) owned by a firm
job of reviewing and evaluating the records used to prepare a company's financial statements
balance sheet
financial statement that reports a firm's financial condition @ a specific time (composed of 3 accounts: assets liability, and owner equity)
the recording of business transactions
cash flow
differences between cash coming in and cash going out of a business
certified internal auditor (CIA)
an accountant with a BA and 2 yrs of experience in internal auditing and who passed an exam administered by the Institue of Internal Auditors
certified management accountant
profession accountant who has met certain educational and experience requirements, passed a qualifying exam, and is certified by Institute of Certified Public Accountants and meets state's requirements
cost of goods sold (or cost of goods manufactured)
measure of the cost of merchandise sold or cost of raw materials and supplies used for producing items for resale
current assets
items that can and wil be converted into cash within one year (include cash, accounts receivable, and inventory)
systematic write off of the cost of a tangible asset over its estimated useful life
double entry bookkeeping
concept of writing every transaction in 2 places
financial accounting
info and analyses it generates are for people outside of the organization
financial statement
summary of all transactions that have occured over a particular period
fixed asset
long term assets that are relatively permanent such as land, buildings, and equipment
fundamental accounting equation
assets= liabilities + owner's equity
government and not-for-profit accounting
involves working for organizations whose primary purpose is not generating a profit but serving rate payers, tax payers, and other according to budget
gross profit (gross margin)
is how much a firm earned by buying (or making) and aseeling merchandise
income statement
financial statement that shows profit after cost, expenses, and taxes
independent audit
an ecaluation and unbiased opinion about the accuracy of a company's financial statements
intangible assets
long term assets that have no real physical form but do have value (patent trademarks, copyrights, etc)
record book or computer program where accounting data are first entered
specialized accounting book or computer program in which information from accounting journals is recorded in specific categories and posted (so managers can find all info)
what hte business owes to others
current liabilities-debts in 1 year or less
long-term liabilities-debts not due for a year or longer
refers to how fast an asset can be converted into cash
managerial accounting
used to provide info and analyses to manager within the organization to assist them in decision making (concerned with measuring, and reporting costs of production, marketing, and other functions)
net income or net loss
the resources (revenue) left over after all costs or expenses (including taxes) were paid
operating expenses
costs involved in operating a business (rent, salaries, supplies, utilities, etc)
owner's equity
amount of the business that belongs to the owners minus any liabilities owned by the business (owners equity=assets-liabilities)
private accountant
work for a single firm, government agency, or non-profit organization
public accountant
provide his/her's services to individuals or businesses on a fee basis
ratio analysis
assessment of a firm's financial condition and performance through calculations and interpretations of financial ratios developed from the firm's financial statement
retained earnings
accumulated earnings from the firm's profitable operations that were kept in the business and not paid out to stockholders dividends (distribution of company's profits)
value of waht is received for goods sold, services rendered, and other financial sources
statement of cash flows
reports cash receipts and disbursements related to the 3 major activities of a firm
1. operations
2. investments
3. financing
tax accountant
trained in tax law and is responsible for preparing tax returnes or developing tax stragies
trial balance
a summary of all the financial data in the account ledgers to check whether the figures are correct and balanced
sets forth management's expectations for revenues and on the basis of those expectations, allocates the use of specific resources throughout the firm
capital budget
highlights a firm's spending plans for major asset purchases that often require a lot of money
capital expenditures
major investments in either tangible long-term asstes such as land, buildings, etc
cash budget
estimates a firm's projected cash inflows and outflows that the firm can use to plan for any cash shortages or surpluses during a given period
cash flow forecast
predicts the cash inflows and outflows in future periods, usually in monthes or quarters
commercial finance companies
non-deposit type organizations that make short term loans to borrowers who offer tangible assets as collateral (property, etc)
commericial paper
consists of unsecured promissory notes, in ammounts of $100,000 and up, that mature in 270 days or less (commercial paper states a specific amount of money the business agrees to repay the lender/investor on a specific date)
cost of capital
the rate of return a company must earn in order to meet the demands of its lenders and expectations of its equity holders
debt financing
refers to funds raised through various forms of borrowing that must be repaid
equity financing
money raised from within the firm (from operations) or thorugh the sale of ownership in the firm (stock)
process of selling accounts receivable for cash
a function in a business htat acquire funds for the firm and manages those funds within the firm
financial control
process in which a firm periodically compares its actual revenues, costs, and expenses with its budget
financial management
job of managing a firm's resources so it can meet its goals and objectives
financial managers
examine the financial data prepared by accountants and make recommendations to top executives regarding strategies for improving the financial strength of a firm
indenture terms
terms of an agreement in bond issue
the raising of needed funds through borrowing to increase the firm's rate of return
line of credit
a given ammount of unsecured shot term funds a bank will lend to a business, provided the bank has funds readily available
long-term financing
refers to funds borrowed for major purchases that will be reaid over a specific period longer than 1 year
long-term forecast
predicts revenues, costs, and expenses for a period longer than 1 year, and sometimes as far as 5-10 years into the future
operating (master) budget
ties together all the firm's other budgets and summarizes the business's proposed financial activities
promissory note
written contract with a primise to pay a supplier a specific sum of money at a definite time
revolving credit agreement
line f credit tat is guarenteed
risk/return trade off
principle known as the greater the risk a lender takes in making a loan, the higher the rate of interest a lender requires
secured bond
issued with some form of collateral such as real estate, equipment, or other pledged assets
secure loan
loan that's backed by something valuable
item of value
short term financing
refers to funds borrowed that will be repaid in 1 yera
short-term forecast
predicts revenues, cost, and expenses for a period of 1 year or less
term-loan agreement
a promissory note that requires the borrower to repay the loan in specified installments (monthly, yearly)
trade credit
practice of buying goods or services now and paying for them later
unsecured bond
(debenture bond) a bond backed only by the reputation of the issuer
unsecured loan
doesn't require a borrower to offer the lending institution any collateral to obtain a loan
venture capital
money that is invested in new or emerging companies that are percieved as having great profit potential