Accounting
Assets- Liabilites + Equity
What is the Accounting Equaion?
An estimation of revenue, expenses, or changes in finances over a specified future period
What is a budget?
The money or other assets that are used by a business to generate returns.
What is capital?
When prices have fallen more than 20% from previous highs
What is a Bear Market?
A legal process for relieving debt that the borrower cannot repay.
What is bankruptcy?
Something you own that adds financial value or helps you generate it.
What is an aset?
The increase in the value of a capital asset that is realized when it's sold.
What is a Capital Gain?
Essential goods or resources that are widely traded and have value across different markets
What is a commodity?
A fixed-income investment issued by governments or corporations to raise funding. Used to borrow money
What is a bond?
A pattern of national economic activity.
What is a business cycle?
A financial statement that shows what a company owns, what it owes, and the amount invested by shareholders at a specific point in time
What is a balance sheet?
A financial account designed for daily use and spending,
What is a checking account?
The percentage change in prices that consumers pay for goods and services.
What is the Consumer Price Index (CPI)?
In the financial markets, such as stocks, when prices have generally been increasing or are expected to increase.
What is a bear market?
A company's after-tax net income.
What are earnings
The direct costs associated with producing the goods a company sells
What is the Cost of Goods Sold (COGS)?
Earning interest on both your original principal and accumulated interest over time
What is compound interest?
Characterized by a general decline in prices
What is deflation?
Periodic payments made to shareholders from corporate profits
What are Dividends?
The degree os ownership of a business (Assets- Liabilities)
What is Equity?
Priciples that set the criteria for preparing, presenting, and reporting financial statements in the U.S.
What is GAAP (Generall accepted accounting principles)?
The amount of money needed to sustain a certain standard of living
What is the Cost of Liviing?
When higher production lowers the average cost per unit.
What are Economies of Scale?
A passive investing strategy and trade less frequently to keep costs low. (A pool of Stocks from a category)
What is an Indexx Fund?
Expenses that do not vary with the volume of production
What are fixed expenses?