Terminology # 1
________ is the recording, measurement, and interpretation of financial information.
Accounting
___ ___ are a means of access to pre-approved lines of credit granted by a bank or finance company.
Credit Cards
____ is a time-ordered list of account transactions
Journal
A _____ ___ are accounts with funds that usually cannot be withdrawn without advance notice; also known as time deposits.
Savings Accounts
____ ___ is a stringent measure of liquidity that eliminates inventory.
Acid Test
A __ ___ is a card that looks like a credit card but works like a check ; using it results in a direct , immediate , electronic payment from the cardholders’ checking account to a merchant or third party.
Debit Card
A _____ is a book or computer program with separate files for each account.
Ledger
____ ____ are credit cards made available by stores that carry a benefit to the user.
Reward Cards
An ___ ___ is a summary of the firm’s financial information, products, and growth plans for owners and potential investors.
Annual Report
____ is the process of spreading the costs of long-lived assets such as buildings and equipment over the total number of accounting periods in which they are expected to be used.
Depreciation
___ ___ is the total profit (or loss) after all expenses, including taxes, have been deducted from revenue; also called net earnings.
Net Income
_____ is the difference between what it costs to make and sell a product and what a customer pays for it.
Profit
A _____ is an internal financial plan that forecasts expenses and income over a set period of time.
Budget
______ are the costs incurred in the day-to-day operations of an organization
Expenses
____ ____ is net Income divided by sales.
Profit Margin
____ is anything generally accepted in exchange for goods and services also called currency.
Money
______ is the movement of money through an organization over a daily, weekly, monthly, or yearly basis.
Cash Flow
___ ____ are revenues minus the cost of goods sold required to generate the revenues.
Gross Income
______ is the total amount of money received (or promised) from the sale of goods or services, as well as from other business activities.
Revenue
____ are debts the firm owes to others.
Liabilities