Money
What is a credit score?
A credit score is a number calculated to measure your creditworthiness.
What is debt?
Debt is money borrowed from a lender that must be repaid with interest over time. It can be used for various purposes, such as buying a home, paying for education, or covering emergency expenses.
A form of business that can have many owners and issue stock?
Corporation
Which account is not a liability account?
Cash
What is a stock?
A stock represents a share in the ownership of a company, including a claim on the company's earnings and assets. As such, stockholders are partial owners of the company.
What is an emergency fund?
An emergency fund is like a financial safety net for unexpected expenses.
EX: For example, if your car breaks down or you lose your job.
What is the difference between secured and unsecured debt?
Secured debt is backed by collateral, such as a house or car, which the lender can take if you don’t repay the loan. Unsecured debt, like credit card debt, doesn’t have collateral backing it, making it riskier for lenders and often resulting in higher interest rates.
In this type of business, the owner is responsible for all debts?
Sole-Proprietorship
A ___________ is used to record a business event as they occur throughout the year.
Journal Entry
The New York Stock Exchange is located in ___________________
New York City
Is it better to pay off debt or save money?
It's usually best to balance both. High-interest debt (like credit card debt) should be a priority because it grows fast. But it's also essential to save a little, especially for emergencies, so you don't have to borrow more money when unexpected expenses pop up.
What is the snowball method?
The snowball method involves paying off your smallest debts first to build momentum. Once a small debt is paid off, you move on to the next smallest, creating a psychological boost as you see debts disappear.
A business that takes natural resources and converts them into a consumer good?
Manufacturer
The __________ summarizes the accounting equation in report format.
Balance Sheet
What’s the Difference Between a Stock and a Share?
“Shares” are the ownership certificates of a specific company — so you might say you have 50 shares of Facebook.
"Owning stock", on the other hand, is a more general term that means you own a number of shares in a company or multiple companies. For example, if you own shares of Facebook and Google, you own tech stock.
How does debt affect my credit score and borrowing ability?
High levels of debt, especially credit card debt, can lower your credit score. This can make it harder to get new loans or might result in higher interest rates. Lenders see high debt as a sign that you might struggle to make payments.
How does interest work on debt?
Interest is the cost of borrowing money, typically expressed as an annual percentage rate (APR). It accrues over time and increases the total amount you owe, which means you pay back more than you borrowed.
The parent company of a franchise is known as?
Franchisor
Entries to revenues accounts such as Service Revenues are usually?
Credit
What’s a Mutual Fund?
A mutual fund is a pool of investments created by a money manager, who places money in various stocks, bonds and other investments, like real estate or natural resources.
What are the pros and cons of using a debit card vs. a credit card?
A debit card is like paying with cash – the money comes straight out of your bank account. It’s good because you can only spend what you have. A credit card is like a short-term loan – you borrow money to pay and pay it back later. It can be good for building credit or in emergencies, but if you don't pay it off each month, interest charges can add up.
What is a credit utilization ratio?
It's the amount of credit you're using compared to your total credit limit. Aim to keep it below 30% to show lenders you manage credit responsibly.
A group that is in charge of making business decisions for a corporation?
Board of Directors
Which financial statement displays the revenues and expenses of a company for a period of time?
Income Statement
What’s an ETF?
Exchange-traded funds, better known as ETFs, work similarly to mutual funds, but their up-front and ongoing investing fees are generally lower.