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B.E 4.01
Unit 4.01 Key Terms
Term | Definition |
---|---|
Accountant | An individual who has had specialized training in accounting procedures |
Accounting | The process of keeping financial records. |
Accounting Cycle | A process or series of steps that businesses complete to maintain their financial records effectively. |
Accounting Standards | Rules that accountants must follow when preparing financial statements. |
Acquisition of funds | Finance activity involving making decisions about financing. |
Administration of assets | Finance activity involving making decisions about a firm’s investments. |
Assets | Anything of value that a business owns. |
Balance Sheet | A financial statement that captures the financial condition of the business at that particular moment. |
Capital Investment Decisions | Decisions that determine which projects a business will invest in, how the investment(s) will be financed, and whether to pay dividends to shareholders. |
Cash Flow Statement | A financial summary with estimates as to when, where, and how much money will flow into and out of a business. |
Dividends | A sum of money paid to an investor or stockholder as earnings on an investment. |
Expenses | The monies that a business spends; also called expenditures. |
Finance | In business, the function that involves all money and money management matters. |
Financial Statement | A summary of accounting information. |
Income | Money received by a business or an individual from outside sources. |
Income Statement | A financial summary that shows how much money the business has made or has lost; also called the profit-and-loss statement. |
Liabilities | Debts that the business owes. |
Net Worth | The total value of the business. |
Owner's Equity | The amount an owner has invested in the business plus or minus profits and losses. |