Money
Come in the following denominations: pennies, nickels, dimes, & quarters
What are coins?
The exchange of goods and services without the use of money
What is bartering?
Persons ability to borrow money or purchase goods or services with the understanding they will pay for them at a later date
What is credit?
Valuable resources that a company owns
What are assets?
Basic Accounting Equation
Assets= Liabilities + Owner's Equity
Who first invented paper money?
Song Dynasty
Is an increase in prices over a given period of time caused by a natural increase in jobs, higher wages, and increased household income
What is inflation?
Credit scores are also commonly referred to as what?
What is a FICO score?
Financial obligations of a company
What are liabilities?
Person who maintains and reviews business records
What is an accountant?
Debt-based investment with an agreed upon interest rate issued by governments to support government spending
What are government bonds?
Means money is largely accepted as a form of payment
What is medium of exchange?
An item of value, such as a home or car, that is pledged to secure a loan
What is collateral?
Financial statement that compiles information about an organization's assets, liabilities, and owner's equity
What is a Balance sheet?
What is Total Operating Expenses
Examples include the US dollar, Great British pound, the euro, and the indian rupee
What is Fiat Money?
Means it is easy to measure the value of any economic transaction with the use of money
What is a unit of measurement?
New credit, length of time having credit, amount owed, payment history, and credit types are all things that determine what?
What is your credit score?
Financial statement businesses use to evaluate their financial health and well-being and see how cash enters and exits the company
Cash flow statements
Gross profit- Total operating expenses- taxes=?
What is net profit
What are the ingredients for paper money?
What is Cotton & Linen?
Means money retains value and can be easily saved over time to make large purchases
What is store of value?
These are rates paid on top of the principle of the loan
interest rates
What is the income statement?
The set of accounting rules used by accountants to prepare reports
Generally Accepted Accounting Principles (GAAP)