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Finance
DECA
| Term | Definition |
|---|---|
| 401(k) | Employer retirement plan, employee contributions, possible matching, tax-deferred. |
| 403(b) | Like 401(k) but for non-profits, public schools, churches. |
| Roth IRA | Contributions after-tax; withdrawals in retirement are tax-free. |
| Traditional IRA | Contributions may be tax-deductible; withdrawals taxed. |
| Bonds | Debt investments; lender receives interest, principal returned at maturity. |
| Cash basis (accounting method) | revenue/expenses recorded when cash changes hands |
| GAAP | Accounting rules U.S. companies follow for financial reporting. |
| Monetary resources | money-denominated assets |
| Revolving Credit | Borrow and repay repeatedly up to a limit. |
| Credit | Ability to borrow based on trust to repay later. |
| Fiat Money | Government-declared currency with value. |
| Acquisitions | a business transaction where one company purchases another company's shares or assets to gain control over its operations, assets, or market position. |
| Dividends | payments made by a company to its shareholders/a portion of a company's post-tax profits that is distributed to shareholders for their investment and support of the company |
| Angel investor | an individual who gives early-stage funding to usually a startup or small business in exchange for ownership (equity) in the company. |
| Economic resources | land, labor, capital, entrepreneurship |
| Financial resources | cash, credit, stocks |
| Accrual basis (accounting method) | recorded when earned/incurred |
| Modified cash (accounting method) | both cash basis and accrual basis |