Term
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Definition
| The recording,measurement,and interpretation of financial information. |
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Term
| certified public accountant (CPA) |
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Definition
| An individual who has been state certified to provide accounting services ranging from the preperation of financial records and the filing of tax returns to complex audits of corporate financil records. |
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Term
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Definition
| Accountants employed by large corporations, government agencies, and other organizations to prepare and analyze their financial statements. |
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Term
| Certified Management Accountants (CMAs) |
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Definition
| Private accountants who after rigorous examination, are certified by the national association of Accountants and who have some Managerial responsibility. |
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Term
| Accounting or bookkeeping ? |
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Definition
| The term accounting and bookkeeping are often mistakenly used interchangeably.Bookkeeping is much narrower and far more mechancil than accounting, bookkeeping is typically limited to the routine, day to day recording of business transactions. Bookkeepers are responsible for obtaining and recording the information that accountants require to analyze a firms financil Position. |
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Term
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Definition
| the internal use of accounting statements by managers in planning and directing organization's activities |
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Term
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Definition
| the movement of money through an organization over a daily, weekly, monthly, or yearly basis. |
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Term
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Definition
| an internal financial plan that forcasts expenses and income over a set period of time |
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Term
| The uses of accounting information |
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Definition
1)Internal use managers and owners use financial statements to aid in internal planning and control.
2)External uses reporting to the Internal Revenue Service, stockholders, creditors, customers, employees. |
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Term
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Definition
| Summary of a firms financial information products and growth plans for owners and future investors. |
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Term
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Definition
| Afirms economic resources or items of value that it owns such as cash inventory land equipment buildings and other tangible things |
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Term
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Definition
| Debts that a firm owes to others |
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Term
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Definition
| equals assets minus liabilities and reflects historical values |
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Term
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Definition
| assets equal liabilities plus owners equity. |
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Term
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Definition
| A system of recording and classifying business transactions that maintains the balance of the accounting equation |
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Term
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Definition
| The four step procedure of an accounting system: examining source documents recording transactions in an accounting journal posting recorded transactions and preparing finanical statements |
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Term
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Definition
| A time-ordered list of accounting transactions |
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Term
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Definition
| A book or computer file with separate sections for each account |
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Term
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Definition
| A finanical report that shows an organization's profitability over a period of time Month, quarter or year |
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Term
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Definition
| The total amount of money received from the sale of goods or services as well as from related business activities |
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Term
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Definition
| the amount of money a firm spent to buy or produce the products it sold durring the period to which the income statement applies |
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Term
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Definition
| Revenues minus the cost of goods sold required to generate the revenues |
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Term
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Definition
| the cost incurred in the day to day operations of an organization |
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Term
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Definition
| the process of spreading the cost of long lived assets such as building and equipment over the total number of accounting periods in which they are expected to be used |
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Term
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Definition
| The total profit (or loss) after all expenses including taxes have been deducted from revenue; also called net earnings |
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Term
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Definition
| A "snapshot" of an organization's financial position at a given moment |
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Term
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Definition
| assets that are used or converted into cash within the course of a calendar year |
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Term
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Definition
| money owed a company by its clients or costomers who have promised to pay for the products at a later date |
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Term
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Definition
| a firms financial obligations to short-term creditors which must be repaid within one year |
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Term
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Definition
| the amount a company owes to suppliers for goods and services purchased with credit |
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Term
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Definition
| all unpaid financial obligations incurred by an organization |
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Term
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Definition
| explians how the companys cash changed from the beginning of the acounting period to the end |
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Term
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Definition
| calculations that measure an organizations financil health |
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Term
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Definition
| ratios that measure the amount of operating income or net income an organization is able to generate relative to its assets owners equity and sales |
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Term
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Definition
| net income divided by sales |
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Term
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Definition
| net income divided by assets |
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Term
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Definition
| net income divided by owners equity also called return on investment (ROI) |
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Term
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Definition
| ratios that measure how well a firm uses its assets to generate each $1 of sales |
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Term
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Definition
| ratios that measure the speed with which a company can turn its assets into cash to meet short-term debt |
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Term
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Definition
| current assets divided by current liabilities |
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Term
| working capital management |
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Definition
| the managing of short-term assets and liabilities |
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Term
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Definition
| Temporary investment of extra cash by organizations for up to one year in U.S. treasury bills,certificates of deposit, commercial paper or Eurodollar loans |
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Term
| commercial Certificates of deposit (CD's) |
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Definition
| Certificates of deposit issued by commercial banks and brokerage companies, available in minimum amounts of $100,000 Which may be traded prior to maturity |
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Term
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Definition
| a written promise from one company to another to pay a specific amount of money |
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Term
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Definition
| an arrangement by which a bank agrees to lend a specified amount of money to an organization upon request |
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Term
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Definition
| loans backed by collateral that the bank can claim if the borrowers do not repay them |
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Term
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Definition
| loans backed only by the borrowers good reputation and previous credit rating |
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Term
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Definition
| the interest rate that commercial banks charge their best customers (usually large Corporations) for short term loans |
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Term
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Definition
| Production facilities (plants), offices,and equipment- all of which are expected to last for many years |
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Term
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Definition
| the process of analyzing the need of the business and selecting the assets that will maximize its value. |
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Term
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Definition
| debts that will be repaid over a number of years such as long term loans and bond issues |
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Term
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Definition
| debt instrument that larger companies sell to raise long-term funds |
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Term
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Definition
| debentures, or bonds that are not backed by specific collateral |
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Term
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Definition
| Bonds that are backed by specific collateral that must be forteited in the event that the issuing firm defaults |
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Term
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Definition
| bonds with interest rates that change with current interest rates otherwise available in the economy |
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Term
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Definition
| a special type of high interest rate bond that carries higher inherent risks |
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Term
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Definition
| earnings after expenses and taxes that are reinvested in the assets of the firm and belong to the owners in the form of equity |
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Term
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Definition
| the dividend per share divided by the stock price |
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Term
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Definition
| the market where firms raise financial capital |
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Term
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Definition
| stock exchanges and over the counter markets where investors can trade their securities with others |
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Term
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Definition
| the sale of stocks and bonds for coroporations |
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Term
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Definition
| the mechanism for buying and selling securities |
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Term
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Definition
| Central locations where investors buy and sell securities |
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Term
| over the counter market (OTC) |
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Definition
| a network of dealers all over the country linked by computers telephones and teletype machines |
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Term
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Definition
| a period of lage increases in stock prices |
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Term
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Definition
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Term
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Definition
| the study of money how its made, how its lost, and how its managed |
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Term
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Definition
| anything generally accepted in exchange for goods and services Medium of Exchange, Store of value and a measure of value. |
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Term
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Definition
| money stored in an account at a bank or other financial institution that can be withdrawn without advance notice also called a demand deposit |
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Term
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Definition
| accounts with funds that usually cannot be withdrawn without advance notice also known as time deposits |
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Term
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Definition
| accounts that offer higher interest rates than standard banks rates but with greater restrictions |
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Term
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Definition
| An independent agency of the federal government established in 1913 to regulate the nations banking and financial industry organized into 12 regions federal reserve banks are in Boston,new York, Philadelphia, richmond, pitttsburgh, Atlanta, Chicago, st louis, kansas city, dallas,minneapolis, san francisco. |
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Term
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Definition
| Means by which the fed controls the amount of money available in the economy |
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Term
| (FED)open market operations |
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Definition
| decisions to buy or sell U.S. Treasury bills (short-term debt issued by the us government) and other investments in the open market. |
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Term
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Definition
| the percentage of deposits that banking institutions must hold in reserve |
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Term
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Definition
| the rate of interest the fed charges to loan money to any banking institution to meet reserve requirments |
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Term
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Definition
| the authority to establish and enforce credit rules for financial institutions and some private investors |
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Term
| Banking institutions (Commercil Banks) |
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Definition
| the largest and oldest of all financial institutions, relying mainly on checking and savings accounts as sources of funds for loans to businesses and individuals |
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Term
| Banking institutions (Savings and Loan associations (S&Ls)) |
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Definition
| financial institutions that primarily offer savings accounts and make long term loans for residential mortagages;also called "thrifts" |
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