The system of recording and summarizing financial transactions and analyzing, verifying, and reporting the results
100
What is Risk management?
Measures taken to prevent or manage a situation involving exposure to risk.
100
Define Expenses?
Financial burdens; cost
100
Could you conduct a SWOT analysis to assess risk?
Yes! A SWOT analysis could expose potential risk!
100
What is the name of your credit score?
FICO® Scores are the credit scores most lenders use to determine your credit risk. You have FICO® Scores from each of the three credit bureaus—Experian, Equifax and TransUnion. Each score is based on information the credit bureau keeps on file about you.
200
Define Assets?
Things you own of value. Example Cash, House, Car, ETC.
200
What is risk?
A situation involving exposure to danger.
200
What is a balance sheet?
An official financial statement that includes the company’s assets and liabilities. It determines the value of the company by subtracting liabilities from assets.
200
How many components are there in risk?
Risk has three components: 1) an event that causes harm; 2) an undesirable outcome; and 3) a probability of the event occurring.
200
What is an interest rate?
The cost you are charged for borrowing credit. The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
300
Define Liabilities?
A debt or obligation (money owed).
300
How is it possible to manage risk?
You manage risk by insurance.
300
What is an income statement?
A financial statement of a company’s operation. Shows a company’s income, expenses, and income for a period of time. Shows the company’s profit or loss for a given period of time.
300
Can you choose to ignore risk?
Yes! Insure very dangerous risk while ignoring less dangerous risk.
300
What is recorded on the balance sheet?
Assets and Liabilities.
400
Define Income?
A monetary gain (usually from the sale of products or services)
A legal agreement to receive cash, goods, or services now and pay for them in the future. Credit cost you based on your interest rate.
400
Name 3 different types of risk?
Mr. Paulk will review.
400
When filling out a deposit slip with no cash back do I need to sign the slip?
No! You only need a signature when cashing something or receiving money not depositing.
500
Define Equity?
The amount of the initial investment plus retained earnings.
500
How can you transfer Risk?
You transfer risk through insurance. A policyholder pays a premium to the insurer to protect them from financial loss should the thing they are insured against occur.
500
What is a debit?
*An entry recording an amount owed, listed on the left-hand side or column of an account.
*A payment made or owed
*Your own money is being spent!
500
If you own insurance on a risk what are you called?