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100 Cards in this Set
- Front
- Back
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Mass-Customization |
a principle in which companies produce in large volumes, but each unit features the unique options the customer prefers |
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Internet
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a gigantic system of interconnected computers- more than 100 million computers in over 100 countries
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Hypertext Transfer Protocol(HTTP)
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the communications protocol used for the World Wide Wed, in which related pieces of information on separate Web pages are connected using hyperlinks
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World Wide Web |
a branch of the internet consisting of interlinked hypertext documents, or Web pages |
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Simple Message Transfer Protocol(SMTP) |
the basic communications protocol used to send e-mail |
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Post Office Protocol (POP) |
one of the basic communications protocols used to receive email |
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Intranet |
an organizations private network of internally linked Web sites accessible to only the employees |
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Accounting |
comprehensive system for collecting, analyzing, and communicating financial information |
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Bookkeeping |
recording of accounting transactions |
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Accounting information system (AIS) |
organized procedure for identifying, measuring, recording, and retaining financial information for use in accounting statements and management reports |
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Controller |
Person who managed all of a firm's accounting activities (Chief accounting officer) |
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Financial accounting |
field of accounting concerned with external users of a company's financial information |
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Managerial Accounting |
field of accounting that serves internal users of a company's financial system |
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Certified Public Accountant (CPA) |
accountant licensed by the state and offering services to the public |
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Audit |
systematic examination of a company's accounting system to determine whether its financial reports reliably represents its operations |
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Generally Accepted Accounting Principles (GAAP) |
accounting guidelines that govern the content and form of financial reports |
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Tax services |
assistance provided by CPAs for tax preparation and tax planning |
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Management Advisory Services |
assistance provided by CPA firms in areas such as financial planning, informational systems design, and other areas of coiner for client firms |
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Core Competencies For Accounting |
the combination of skills, technology, and knowledge that will be necessary for the future CPA |
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Private Accountant |
salaried accountant hired by a business to carry out its day-to-day financial activities |
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Management Accountant |
private accountant who provides financial services to support managers in various business activities within a firm |
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Certified Management Accounting (CMA) |
professional designation awarded by the Institute of Management Accountants in recognition of management accounting qualifications |
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Forensic Accounting |
practice of accounting for legal purposes
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Certified Fraud Examiner |
professional designation administered but the Association of Certified Fraud Examiners in recognition of qualifications for a specialty area within forensic accounting |
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Sarbanes-Oxley Act of 2002 (SARBOX) |
enactment of federal regulations to restore public trust in accounting practices by imposing new requirements on financial activities in publicly traded corporations |
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Accounting Equation |
Assets = Liabilities + Owners' Equity used by accountants to balance data for the firms financial transactions at various points in the year |
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Asset |
any economic resource expected to benefit a firm or an individual who owns it |
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Liability |
bedt owed by a firm to an outside organization or individual |
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Owners' Equity |
amount of money that owners would receive if they sold all of the firm's assets and paid all of its liabilities |
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Financial Statement |
any of the several types of reports summarizing a company's financial status to stakeholders and to aid in managerial decision making |
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Balance Sheet |
financial statement that supplies detailed information about a firm's assets, liabilities, and owners equity |
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Current Asset |
asset that can or will be converted into cash within a year |
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Liquidity |
east with which an asset can be converted into cash |
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Fixed Assed |
asset with long-term use or value, such as land, buildings, and equipment |
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Depreciation |
accounting method for distributing the cost of an asset over its useful life |
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Intangible Asset |
nonphysical asset, such as a patent or trademark, that has economic value in the form of expected benefit |
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Goodwill |
Amount paid for an existing business above the value of its other assets |
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Current Liability |
debt that must be paid within one year |
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Accounts Payable (Payables) |
current liability consisting of bills owed to suppliers , plus wages and taxes due within the coming year |
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Long Term Liability |
debt that is not due for at least one year |
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Paid-In capital |
money that is invested in a company by its owners |
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Retained Earnings |
earnings retained by a firm for its use rather than paid out as dividends |
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Income Statement (Profit and Loss Statement) |
financial statement listing a dorms annual revenues and expenses so that a bottom line shows annul profit or loss |
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Revenues |
funds that flow into a business from the sale of goods or services |
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Cost of Revenues |
costs that a company incurs to obtain revenues from other companies |
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Cost of Goods Sold |
costs of obtaining materials for making the products sold by a firm during the year |
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Gross Profit |
A preliminary, quick to calculate profit figure calculated from the firms revenues minus its cost of revenues (direct costs of getting the revenues) |
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Operating Expenses |
costs, other than the cost of revenues, incurred in the producing a good or service |
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Operating Income |
gross profit minus operating expenses |
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Net Income |
gross profit minutes operating expenses and income tax |
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Statement of Cash Flows |
Financial statement describing a firms yearly cash receipts and cash payments |
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Commercial Bank |
company the accepts deposits that it used to make loans, earn profits, pay interests to depositors, and pay dividends to owners |
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Savings and Loan Association (S&L) |
financial institution accepting deposits and making loans primarily for home mortgages |
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Mutual Savings Bank |
financial institution whose depositors are owners sharing in its profits |
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Credit Union |
nonprofit, cooperative financial institution owned and run by its members, usually employees of a particular organization |
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Pension Fund |
nondeposit pool of funds managed to provide retirement income for its members |
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Insurance Company |
nondeposit institution that invests funds collected as premiums charged for insurance coverage |
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Finance Company |
nondeposit institution that specializes in making loans to businesses and consumers |
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Securities Investment Dealer (Broker) |
financial institutions that buys and sells stocks and bonds both for investors and for it own accounts |
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Prime Rate |
interest rate available to a bank's most creditworthy customers |
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Electric Funds Transfer (EFT) |
communication of fund-transfer information over wire, cable, or microwave |
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ATM |
electronic machine that allows bank customers to conduct account-related activities 24/7 |
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Federal Deposit Insurance Corporation (FDIC) |
federal agency that guarantees the safety of deposits up to $100,000 in the financial institutions that it insures |
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Federal Reserve System (THE FED) |
central bank of the USA, which acts as the governments bank, serves member commercial banks, and controls the nations money supply |
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Monetary Policy |
management of the nation's economic growth by managing the money supply and interest rates |
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Reserve Requirement |
percentage of its deposits that a bank must hold in cash or on deposit with the Fed |
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Time Value of Money |
principle that invested money grows over time by earning interest or some other form of return |
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Compound Growth |
the compounding of interest over time-with each additional time period, interest returns accumulate |
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Stock |
a portion of ownership of a corporation |
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Common Stock |
the most basic form of ownership, including voting rights on major issues, in a company |
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Dividend |
payment to shareholders on a per share basis, out of the company's earnings |
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Mutual Fund |
company that pools cash from investments from individuals and organizations to purchase a portfolio of stocks, bonds, and other securities |
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Prospectus |
registration statement filed with the SEC, containing information for prospective investors about a security to be offered and the issuing company |
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Exchange-Traded Fund |
a bundle of stocks or bonds that are in an index that tracks the overall movement of a market but, unlike a mutual fund, can be traded like a stock |
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Securities |
stocks, bonds, and mutual funds representing secured or asset bases, claims by investors against issuers |
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Securities Markets |
markets in which stocks and bonds are sold |
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Primary Securities Market |
market in which new stocks and bonds are bought and sold by firms and governments |
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Securities Exchange Commission |
government agency that regulates US securities markets |
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Investment Bank |
financial institutions that specialized in issuing and reselling new securities |
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Secondary Securities Market |
market in which existing (not new) stocks and bonds are sold to the public
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Stock Exchange |
an organization of individuals to provide an institutional auction serving in which stocks can be bought and sold |
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National Association of Securities Dealers Automated Quotation System (NASDAQ) |
worlds oldest electronic stock market consisting of dealers who buy and sell securities over a network or electronic communications |
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Electronic Communication Network(ECN) |
electronic trading system that brings buyers and sellers together outside traditional stock exchanges |
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Stock Broker |
individual or organization that receives and executes buy and sell orders on behalf of outside customers in return for commissions |
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Book-Entry Ownership |
procedure that holds investors shares in book entry from rather than issuing a physical paper certificate of ownership |
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Market Index |
Statistical indicator designed to measure the performance of a large group of price changes of a stock market |
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Bull Market |
period of rising stock prices lasting 12 months or longer, featuring investor confidence for future gains and motivation to buy |
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Bear Market |
period of paling stock prices marked by negative investor sentiments with motivation to sell ahead of anticipated losses |
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DOW Jones Industrial Average |
oldest and most widely cited market index based on the prices of 40 blue chip large cap industrial firms on the NYSE |
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S&P 500 |
market index of US equities based on the performance of 500 large-cap stocks representing various sectors of the overall equities market |
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NASDAQ Composite Index |
market index that includes all NASDAQ listed companies both domestic and foreign with a high proportion of technology companies and small cap stocks |
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Russell 2000 index |
specialty index that uses 2000 stocks to measure the performance of the smallest US companies |
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Asset Allocation |
relative amount of funds invested in each of several investment alternatives |
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Portfolio |
combined holdings of all the financial investments of any company or individual |
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Collateral |
an asset pledged for the fulfillment of repaying a loan |
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Unsecured Loan |
a loan for which collateral is not required |
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Bond Indenture |
legal document containing complete details of a bond issue |
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Maturity Date |
future date when repayment of the bond is due from the bond issuer |
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Corporate Bond |
a formal pledge obligating the issuer to pay interest periodically and repay the principal at maturity |
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Default |
Failure of the borrower to make payment when due to lenders |
