Fundamental Accounting
Anything a business owns
Asset
The total amount of money received by a person AFTER any deductions
Net Income
A place to trade stocks (NYSE, TSX, Nasdaq)
Stock Exchange
A loan to purchase a house
Mortgage
The interest rate charged on credit is APR, what does APR stand for?
Annual Percentage Rate
Anything a business owes
Liability
The total amount of money received by a person BEFORE any deductions
Gross Income
What does GIC stand for...
Guaranteed _________________ Certificate
Guaranteed Investment Certificate
Professional who keeps and interprets the financial records of a business
Accountant
What does TFSA stand for and how much can one deposit in it each year?
Tax Free Savings Account
6,000
Assets - Liabilities =
Owners Equity
Financial plan for wise spending and saving based on income and expenses.
Budget
A unit of ownership in a corporation
Stock
Borrowing money to buy depreciating assets (car, cellphone, expensive clothing)
Bad Debt
Name the two types of cost from our unit and identify which changes and which stays the same.
Fixed Cost - Stays the same
Variable Cost - Changes
The total amount due from customers (debtors) as a result of purchasing goods/services on credit.
Accounts Receivable
Using savings to generate income
Investing
The greater the ________ of your investment, the greater the potential_____________.
Risk, Return
Before a loan is granted, lenders do a check on your previous borrowing and payment activities through a.........
Credit Bureau
Name 2 of the 3 C's of Credit
Character
Capacity
Capital
The ease of converting assets to cash
Liquidity
Investing in a variety of businesses to spread out the risk
Diversify or Diversification
An investment container where you can store investments to reduce your taxes
Tax Shelter
The privilege of using someone else’s money for certain period of time.
C_________
Credit
1. What are the 3 headings of a balance sheet, income statement, and transaction analysis.
2. A balance sheet includes what 3 components?
3. An income statement includes what 2 components?
4. What does MER stand for?
Who, What, When
Assets, Liabilities, Owners Equity
Revenues and Expenses
Management Expense Ratio