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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 make decisions about a firm's investments |
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, & whether to pay dividends to shareholders |
Cash flow statement | a financial summary with estimates as to when, where ,& how much money will flow into & out of a business |
Dividends | a sum of money paid to an investor or stockholder as earning on an investment |
Expenses | the monies that a business spends; also called expenditures |
Finance | in business, the function that involves all money & 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-&-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 & losses |