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4.01 Study Stack Voc
Business Essentials
| Term | Definition |
|---|---|
| accounting | the process of keeping and interpreting financial records |
| accounts playable | all monies owed by the business to others |
| accounts receivable | all monies owed to a firm by its customers |
| acquisition of funds | finance activity involving making decisions about financing |
| administration of assets | finance activity involving making decisions about a firms investment |
| asset | anything of value that a business or individual owns |
| capitol budgeting | a process in which a firms financial manager determine which projects it should invest in |
| capitol investment decisions | decisions that determine which projects a business will invest in, how the investment will be financed, and whether to pay dividends or shareholders |
| capitol structure | a firms mix of financing, usually some combination of debt and equity |
| cash conversion cycle | ratio that refers to the number of days between a company paying for raw materials and receiving cash from selling the products made from those raw materials |
| debt funding | using money that is lent by a bank or other institution to finance a project |
| dividend | a sum of money paid to an investor or stockholder as earnings as an investor |
| equity funding | using money from investors to finance a project in exchange for shares in the company |
| finance | in business, the function that involves all money and money management matters |
| financing | funding a business activity or project through debt, equity, or venture capitol |
| return on capitol | a measure on how well a business generates cash flow in relation to the capitol it has already invested in itself |
| venture capitol | invested money used for new business opportunities |
| working capitol management | management of a firms current balance of assets and liabilities; involves accounts payable and receivable |
| 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 |
| accounting system | the methods and procedures used I consistently handling the businesses financial information |
| accrual accounting method | a method of accounting that records transactions at the time the occur even if no money changes hands at the time |
| balance sheets | a financial statement that captures the financial condition of business at that particular moment |
| bookkeeping | the steps of the accounting cycle the involve recording each business transaction; the process of analyzing financial transactions, journalizing transactions. posting to ledgers, and balancing the books |
| cash | currency and coins |
| cash accounting method | an accounting method in which income and expenditures are recorded at the time the changes hands |
| cash flow statement | a financial summary with estimates as to when, where , and how much money will into out of a business |
| credit | the arrangement by which businesses or individuals can purchase now and pay later |
| expenditures | the monies that a business spends; also called expenses |
| expenses | the monies that a business spends |
| financial accounting | a type of accounting that involves preparing and reporting financial data to external users who are not directly involved with business operations |
| financial statement | a summary of accounting information |
| income | money received by a business or an individual from outside resources |
| income statement | a financial summary that shows how much money the business has made or has lost; also called the profit-and-loss statement |
| investors | those who invest their funds in a business; may be owners or stockholders |
| journal | a special book or computer program in which businesses transactions are recorded in order which they occur |
| ledger | the accounting record for a specific department or area of the business |
| liabilities | debts that the business owes |
| managerial accounting | a type of accounting that involves preparing and reporting financial data to internal users , usually managers, who need financial information to control day to day operations and to make financial decisions and plans affecting the business |
| net worth | the total value of a business |
| owners equity | the amount an owner has invested in the business plus or minus profits and losses |
| transaction | a businesses activity such as a sale, a purchase, or a return |
| trial balance | the listing of a businesses different accounts and their current balances; used to check the accuracy of journal and ledger entries |
Created by:
alexander.s132
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