Accounting
This document shows a company’s revenues and expenses over a period
Income Statement
A bond is a type of ________.
Loan / Debt
This is a share in the ownership of a company.
Stock
This is a person who puts money into businesses, stocks, or bonds.
Investor
Before money, people used this system to exchange goods.
Barter
These accounts increase with a debit and decrease with a credit
Assets
This is the interest payment a bondholder receives.
Coupon (Coupon Payment)
When a company first sells stock to the public, it’s called this.
IPO (Initial Public Offering)
Spreading your money across different types of investments is called this.
Diversification
Gold and silver are examples of this type of money.
Commodity Money
The accounting equation is Assets = Liabilities + ________.
Shareholder's Equity
A bond that sells for less than its face value is said to be sold at a ________.
Discount
A person who owns stock is called this.
Stockholder / Shareholder
This measures how much risk or uncertainty there is in an investment’s return
Volatility
This system backed paper money with gold reserves.
Gold Standard
This step comes right before preparing financial statements in the accounting cycle.
Trial Balance
This type of bond can be converted into shares of stock.
Convertible Bond
This type of stock usually pays fixed dividends and has priority over common stock.
Preferred Stock
A low-cost fund that tracks the performance of a market index is called this.
ETF
Today, most countries use this type of money that has no intrinsic value.
Fiat Money
This accounting principle says expenses should be recorded in the same period as the revenue they help generate.
The Matching Principle
When interest rates rise, the market price of bonds usually does this.
Decreases / Goes Down
If a stock price goes from $100 to $50, the market is said to be in this condition.
Bear Market
This is the process of earning interest on both the original amount and the interest already earned.
Compound Interest
This quality of money means it should be accepted everywhere within a society.
Acceptability