Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
40 Cards in this Set
- Front
- Back
|
Accounting |
Collecting, analyzing, reporting |
|
|
A-L = OE , A=L+OE, L=A-OE |
Define each and explain |
|
|
Assets |
Anything owned of value |
|
|
Barter |
Wheat for oil |
|
|
Board of Governors |
Controls the fed |
|
|
Capital Budget |
Estimate Major expenses |
|
|
Cash |
Most liquidity; easily accesible |
|
|
Comercial Bank |
For profit; take deposits; make loans |
|
|
Credit Union |
Only members they use |
|
|
Currency |
A system of exchange: Most common form of money |
|
|
Discount Rate |
Charged rate to member banks |
|
|
Equity financing |
Two Key advantages 1.) No obligation for dividends 2.) No need to repay money for sales final |
|
|
FDIC Protection? |
250k insures deposit against bank failure |
|
|
Fed District Banks |
12 |
|
|
FED how increase money supply |
Decrease reserve requirement, buy government securities, reduce discount rate |
|
|
FED's Mission |
Maintain healthy economy |
|
|
Financial Accounting |
Asses company ability to repay |
|
|
Financial accounting standards board |
Define guidlines for GAAP |
|
|
Financial Management |
Use money effectively |
|
|
Financial plan |
plan to obtain and use money |
|
|
Financial ratio |
relationship between 2 elements of financial statement |
|
|
Income statement |
Revenue-costs of good sold-expenses |
|
|
IPO |
First time sold |
|
|
Liability |
Debt Owed |
|
|
Long Term Financing |
Big expenses more than 1 yr. |
|
|
M1, M2 |
Measure money supply |
|
|
MGMT/fin. accounting diff? |
Audience |
|
|
Measure of value |
Compare products |
|
|
money - 3 functions *open market operations |
Medium of exchange, measure of store of value |
|
|
Promissory Note |
Promise to repay future date |
|
|
Secondary Market |
Purchase apple stock for IRA |
|
|
Short term financing |
Pay current bills |
|
|
Statement of cash flow - 3 activities |
1.) operating 2.) investing 3.) financing Does not show expenses for particular accounting period |
|
|
Unsecured Financing |
No colateral |
|
|
*venture capital |
Small potentially successful firms |
|
|
difference between private placement |
investing in small business |
|
|
Open Market - reduce/increase |
To reduce you sell to increase you buy |
|
|
Venture Capital Financing |
Private Placement, Stock sold directly to pension funds, insurance companies, and large institutional investors |
|
|
Debt and Equity Financing |
Debt- the borrowing of money that has to be payed back Equity- selling ownership in your company |
|
|
Financial plan - steps to create |
-Find and set goals -Control your finances -Evaluate alternatives -Implement |
