A
A risk management strategy that avoids overexposure to specific industries or asset classes. People and organizations spread their capital out across multiple types of financial holdings and/or economic sectors.
Diversification
This method of accounting records revenue and expense-related items when they first occur.
Accrual Based Accounting
This account tracks money owed to creditors. Opposite of Accounts Receivable
Accounts Payable
This kind of accounting records revenues and expenses when the money involved in each transaction actually changes hands.
Cash Basis Accounting
How many weeks until our next day off?
1 Week
This account tracks the money owed to a person or business by its debtors. It is the functional opposite of accounts payable.
Accounts Receivable
A fixed cost (or fixed expense) is a cost that stays the same regardless of increases or decreases in a company's output or revenues
Fixed Cost
This describes the amount of money that would remain if a business sold all its assets and paid off all its debts. It therefore defines the stake in a company collectively held by its owner(s) and any investors.
Equity
An accounting professional specially licensed to provide auditing, taxation, accounting, and consulting services. They're also known as CPA's
Certified Public Accountant
What were Mr. Lee's 3 Genie wishes?
A cup of coffee, $6 Million, and a second cup of coffee
A finance professional legally permitted to represent people and businesses before the Internal Revenue Service (IRS), they must earn licensure from the IRS by passing a three-part exam or building direct experience as an IRS employee.
Enrolled Agent
This kind of financial statement specifies the business's current state regarding its assets, liabilities, and owners' equity.
Balance Sheet
A master list of all accounts in an organization's general ledger.
Chart of Accounts
An item of value or resource that a business owns or controls.
Asset
When is your Vocab Test?
Tuesday Sept 1 (next class)
This describes the balance of cash that moves into and out of a company during a specified accounting period.
Cash flow
In corporate accounting, it represents a portion of the company's profits voluntarily paid out to shareholders.
Dividends
An expense that applies to a class of assets known as fixed assets. Fixed assets are long-term owned resources of economic value that an organization uses to generate income or wealth. Equipment, and machinery are common examples.
Depreciation
This system record each financial transaction twice: once as a credit, and once as a debit. When the sum total of all recorded debits and credits equals zero, the accounting books are considered "balanced."
Double Entry Accounting
Who are Mr. Lee's 3 least favorite MLB Teams?
Astros, Dodgers, and Yankees
An accounting entry that increases assets or decrease liabilities. The opposite of a credit
Debit
The informal phrase describes an accountant's finalization and approval of the bookkeeping data covering a particular accounting period.
Closing the Books
Revenue recognized by a company but not yet recorded in its accounts is known as (Blank)
Accrual
This account tracks the total costs a company incurred when creating a product or providing a service.
Cost of Goods Sold (COGS)
Which of the following cities *does not* have a team for each of the big 4 sports leagues (NFL, NBA, MLB, and NHL)?
A) New York B) Philadelphia C) Dallas D) Atlanta
Atlanta, no NHL team