Financial Concepts
Money coming in and money going out
What is revenue and expenses?
Encompasses monetary present and future value
What is time value of money?
This type of asset includes physical objects like equipment, land, or buildings that a sports organization owns.
What are tangible assets?
When an asset is not being used to its full potential, such as a stadium’s unused cardboard boxes, this could be seen as an opportunity to turn a liability into what?
What is an asset?
This art of accounting is internal focused and uses a balanced scorecard
What is managerial accounting?
Shows financial state of business at a single point in time
What is a balance sheet?
This type of asset refers to money, investments, and accounts receivable that can be quickly converted into cash.
What are liquid assets?
These liabilities are short-term debts owed by a sports organization, generally due within a year, such as employee salaries or utility bills.
What are current liabilities?
Definition: Management, creation, and study of money, investments and other financial instruments
What is finance?
Aids evaluation of the financial statements
What is financial ratios?
This method of asset valuation determines the value of an asset if it were sold immediately, sometimes referred to as a "fire sale" value.
What is liquidation value?
This term refers to using an existing asset to generate additional revenue, such as renting out a sports facility or mascot costume.
What is leveraging an asset?
End result creates three primary financial statements
Opinion is expressed in terms of financial statement fairness and degree of compliance with the standards
What is an audited financial statement?
This valuation technique compares the actual value of an asset as listed on the balance sheet to its market value, highlighting the potential difference.
What is the difference between book value and market value?
This long-term debt is often associated with construction or real estate and can be spread over a significant period, like 20 years.
What are bonds payable?