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23 Cards in this Set

  • Front
  • Back
An international summary statement of all economic and financial transactions between one country and the rest of the world for one year. (7)
Balance of payments
Involves an exchange of promises. The offer is accepted by a return promise from the offeree. Unless the offer provides that acceptance is to be by actual performance, a promise to perform will usually suffice as an acceptance. (7)
Bilateral contract
The U.S. Internal Revenue Code defines capital assets as any property a taxpayer holds that is not listed in Section 1221, which includes inventory, accounts receivable, and depreciable property or real estate used in a business. (7)
Capital assets
A long-term, non-cancelable lease and, although legally a rental agreement, is in substance an installment purchase by the lessee. Generally accepted accounting principle require that substance (as if the lessee were the owner) be recorded. (7)
Capital lease
For an agreement to be a legally enforceable contract, five elements must be present: legality, mutuality of agreement, consideration, capacity of parties, and form required by law. (7)
Consists of coins and paper money issued by the federal government. (7)
A unique form of quota, during which no units of a particular commodity can be imported or, in some cases, exported. (7)
FICA (Federal Insurance Contributions Act), or as it is also known, Social Security tax, must be withheld from each employee's pay. Employers withhold a specific percentage of each employee's earnings until a maximum limit is reached. The employer must also pay a tax at the same rate as the employee. (7)
Refers to the monetary means for making payments in currencies other than a country's own currency. (7)
Foreign exchange
The movement of monies from one country to another. (7)
International finance
Encompasses economic concepts, the political economy, and the sociocultural climate of different nations. (7)
International trade
A contract known as a lease outlines the conditions of how property owners may lease or rent property to others. Most states have specific statutes regulating the landlord-tenant (lessor-lessee) relationship. (7)
Often called a franchise, it is when one party (the lincensor or franchisor) allows or licenses another party (the licensee or franchisee) to use the licensor's trade name, trademarks, commercial symbols, copyrights, and other property in the distribution and selling of goods, and services. (7)
Licensing agreement
Result from dispositions of capital assets held for more than one year. Long-term capital losses are used to offset long-term capital gains. (7)
Long-term capital gains or losses
Usually short-term and gives the lessee the right to use the asset for a given time, but the lessor retains ownership and all its risks and rewards. (7)
Operating lease
The so-called quasi-contract is not a contract in the true sense because there is no mutual assent, but the law imposes an obligation under some circumstances where there is no agreement between the parties to prevent an injustice from occurring. Frequently, a quasi-contract is found to exist to prevent unjust enrichment of a party. (7)
Another form of commercial policy to restrict the amount of international trade. The two types of quotas used are import quotas and tariff quotas. (7)
Result from dispositions of capital assets held for one year or less. Short-term gains and losses must initially be offset to determine net short-term capital gain or loss. (7)
Short-term capital gains or losses
Taxes levied on commodities as they move through a custom boundary. (7)
Promotes greater uniformity in interstate commercial transactions; developed as a model law for state consideration and enactment, and today, the UCC has been adopted by every state. The UCC applies to a wide range of business applications, such as the sale of goods (contracts for the sale of goods) commercial paper, and security interests in personal property. (7)
Uniform Commercial Code (UCC)
One in which the offer is accepted by performance of the requested act. In a unilateral contract the offer invites acceptance only by performance of the requested act, not by a return promise. (7)
Unilateral contract
A document that is used to authorize payment of a liability. (7)
Used to obtain the maximum amount of internal control over cash disbursements, purchasing, and receiving and requires that a voucher be prepared and verified prior to making any payments. (7)
Voucher system