Term
| Basic Accounting Equation |
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Definition
| Basic relationship that states assets equal liabilities plus owners |
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Term
| Non depository Institutions |
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Definition
accept funds from businesses and households, much in which they invest
EX: Insurance Companies, Pensions Funds, Finance Companies |
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Definition
| A financial record of a companies revenues, expenses, and profits over a period of time |
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Definition
| Accounting method that records revenues and expenses when they occur |
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Definition
| Measure of the money supply includes M1 plus a # of other financial assets thatare almost as cash but do not serve directly as a medium of exchange |
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Definition
| Total value of coins currency, travelers check, banking checking account balances and the balances in other demand deposit |
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Definition
| Represents the owners initial investment in the business plus profits that were not paid out over time in the form of cash dividends |
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Definition
| Claim against a firms assets |
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Definition
| The procedure by which accountants convert data about individual transactions to financial statements |
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Definition
| Anything of valued owned or leased by a business |
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Definition
| Most common Federal tool technique of controlling the money supply growth rate by buying/selling U.S. treasury securities |
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Definition
| important function controlling the supply of money + credit |
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Definition
Short term sources funds
Extended by suppliers when a firm receives goods or services, agreeing to pay for them at a later date |
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Definition
| raising needed cash by borrowing allows a firm to benefit from the principle |
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Definition
| anything generally accepted as payments for goods and services |
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Term
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Definition
| is employed by a business other than a public accounting firm |
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Term
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Definition
| Financial statements are prepared according to GAAP whose principles encompass the conventions, rules, and procedures for determining acceptable accounting practices at a particular time |
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Term
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Definition
| Is planning and controlling tool that reflects that firms expected sales revenues, operating expenses, and cash receipts+ outlays |
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Definition
| consists of funds provided by the firms owners when they reinvest earning, make additional contributions, issues stock to the general public |
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Definition
| Financial institutions that accept deposits that can be converted into cash command |
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Definition
| process by which money flows from savers to users |
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Definition
| provides accounting services to individuals and businesses for a fee |
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Definition
| A document that specifies the funds needed by a firm for a period of time, timing of inflows and outflows + the most appropriate sources and use of funds |
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Definition
| Central bank of us is an important part of nations financial systems, help facilitate the clearing of checks |
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Definition
| provides investors and creditors w/ relevant information about a firms cash receipts + cash payments for its operations, investments + financial during and accounting period |
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Definition
| Measure the extent to which a firm relies on debt financing |
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Definition
| Executives who develop + implement their firms financial plan + determine the most appropriate sources and use of funds |
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Definition
| Can be either unsecured/ secured |
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Definition
| a statement of a firms financial position on a particular date |
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Term
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Definition
| An organizations overall financial performance is measure by its __ which evaluates the ability to generate revenues in excess of operating costs + other expenses |
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