Accounting Basics
Investing
Budgeting + Saving
Finance Terms & Concepts
Target Alpha
100
What are resources a company owns called?
Assets
100
What do we call owning a small piece of a company?
Stock or Share
100
What is the term for money you set aside for future expenses?
Savings
100
What is the money a business brings in called?
Revenue or Income
100
What is Target Alpha? (What topic do we focus on?)
a) Financial Literacy
b) Math
c) Self-Improvement
d) Accounting
a) Financial Literacy
200
What are debts or financial obligations called?
Liabilities
200
What is the term for spreading investments across many assets to reduce risk?
Diversification
200
What is a common rule that suggests saving 20% of your income?
50/30/20 rule
200
What is the money a business spends called?
Expenses
200
Which skills do members primarily develop in Target Alpha?
Investing, budgeting, saving, financial planning, and understanding financial markets, etc.
300
What is the financial statement that shows revenues and expenses over a period of time?
Income statement / Profit & Loss statement
300
What does the term “liquidity” refer to in investing?
How quickly an asset can be converted to cash
300
What do we call a plan that tracks income and expenses?
Budget
300
What do we call the difference between revenue and expenses?
Profit or Net-Income
300
What does SPC stand for?
Stock Pitch Competition
400
What is the equation that summarizes a company’s finances? (Hint: 3 terms)
Assets = Liabilities + Owner’s Equity
400
What type of investment represents a loan to a company or government?
Bond
400
Which type of savings account automatically transfers money from checking on a schedule?
Automatic savings account / auto-transfer account
400
What term refers to the percentage of profit earned compared to revenue?
Profit Margin
400
What color is TA's logo?
Green & White
500
What accounting method records revenue when it is earned, not when cash is received?
Accrual Accounting
500
What is the relationship between risk and potential return in investing?
Higher risk means higher potential return
Lower risk means lower potential return
500
[Extra Reading] What financial concept is described as “paying yourself first”?
Prioritizing savings / “Pay Yourself First”
500
What is the term for the decrease in value of an asset over time, like machinery wearing out?
Depreciation
500
Give an example of a real world skill members apply from Target Alpha (otherwise worded, what teachings from TA can one apply to life outside of school?)
Creating a personal budget, tracking spending, or analyzing investment opportunities, etc.