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35 Cards in this Set
- Front
- Back
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For a manager or employee, these words do NOT mean the same thing |
Information and data |
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the accounting equation |
owners equity+liabilities=assets |
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another name for a balance sheet |
statement of financial position |
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The statement of cash flow illustrates how the operating, investing, and financial activities of a company |
affect cash during an accounting period |
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a computer program that uses artificial intelligence to imitate a humans ability to think is an |
expert system |
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cash flow, inventory, and equipment are listed as this on a balance sheet |
assets |
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assets that can be quickly converted into cash or that will be used in one year or less are |
current assets |
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Beginning inventory+Net purchases-ending inventory= |
cost of goods sold |
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measure how effectively a firm is transforming sales into profits |
return on sales |
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a database is a single collection of data and information stored in one place that can be accessed by |
people throughout a firm to make business decisions |
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based on the accounting equation, owners equity is |
the difference between total assets and total liabilities |
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the value of a firms copyrights, patents, and goodwill are reported on a firms balance sheet as |
intangible assets |
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Because of GAAPs, it is possible to compare |
accounting data for one firm with accounting data with accounting data from another firm |
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measure that summarizes a particular characteristic of an entire group of numbers |
statistic |
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If assets total $125,000 and the owners equity totals $75,000, how much are the firms liabilities |
the difference ($50,000) |
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this type of account is not listed on a firms balance sheet |
operating expenses |
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Revenues-cost of goods sold-expenses= |
net income before taxes |
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The ratio computed by dividing cost of goods sold by the average value of inventory is |
inventory turnover |
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a budget for is a financial statement that projects income and expenditures over |
a specified future period |
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typically, long term loans are repaid |
in three to seven years |
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this estimates a firms expenditures for major assets |
capital |
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lowest rate charged by a commercial rate |
prime interest rate |
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the most basic form of corporate ownership |
common stock |
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What is the first bond to be paid |
Interest on common bonds |
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The use of borrowed funds to increase the return of owners equity |
financial leverage |
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This begins with establishing a set of valid goals and objectives |
financial planning |
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An IPO occurs when a corporation sells common stock to |
the general public for the first time |
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this is relatively expensive when it comes to short term financing |
factoring |
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a budgeting approach in which every expense in every budget must be justified is referred to as |
zero base budgeting |
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the most popular and inexpensive form of short term financing is |
trade credit |
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this is a form of equity financing |
selling stock |
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this group of people is allowed to elect a corporations board of directors |
common stockholders |
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a bond backed only by the reputation of the issuing corporation |
registered bond |
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act that stated that public corporation must change auditing firm every 5 years |
Sarbanes-Oxley act |
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act added protection for whistle blowers who reported violations |
Satbanes-Oxley act |
