Accounting 1
This is any resource owned or controlled by a company that provides future economic value.
What is an asset
This is the accounting process of allocating the cost of a tangible asset over its useful life.
What is depreciation
A plan that shows how much money you expect to earn and how you plan to spend or save it over a certain period
What is a budget
The ability to borrow money now and pay it back later, often with interest; also refers to your reputation for paying debts
What is credit?
Average time it takes Cole and John to do the NYT connections
24 mins
These are amounts a business owes to others, like loans, accounts payable, and mortgages.
What is a liability
The amount of profit left after all expenses are subtracted from revenue is called this.
What is net income
Money that is borrowed and must be paid back, usually with interest
What is a loan
A legal process to help people or businesses who cannot repay their debts get relief from some or all owed money
What is bankruptcy
Number of wordles won by Cole and John (during lunch)
3
This is the value left for the owners if all assets are sold and all debts are paid.
What is equity?
In governmental accounting, this term describes funds that have been reserved for specific future expenses.
What is an encumbrance?
The cost of borrowing money, or the money you earn by saving or investing, usually shown as a percentage of the amount
What is Interest
How quickly and easily something you own can be turned into cash without losing much value
What is liquidity
The number of doors stolen by John and Cole
3
This is the income a business earns from its main activities, like sales of goods or services.
What is revenue?
Money owed to a business by its customers for goods or services delivered, but not yet paid for.
What are Accounts Receivable?
A type of investment where you lend money to a government or company; they pay you back with interest on a set schedule
What is a bond?
The amount of money left after all expenses are paid; calculated as revenue minus expenses
What is profit
The number of fish caught collectively by John and Cole on their last fishing excursion (6 hours)
0
These are the costs a company incurs to operate and earn revenue, such as salaries and rent.
What are expenses?
Money a business owes to its suppliers or creditors for goods or services received, but not yet paid for.
What are accounting payable?
The value of all you own (assets) minus all you owe (liabilities), showing your overall financial position
What is net worth?
Money paid regularly (usually every quarter) by a company to its shareholders out of its profits.
What is a dividend