Business Environment
It is the amount of money a business earns above what it spends to run the operations
What are profits?
Federal agency responsible for regulating the various stock exchanges to protect investors by requiring full disclosure of financial information by firms selling bonds or stocks.
What is Securities and Exchange Commission SEC?
Term used by Adam Smith to refer to the process that turns self-directed gain into social and economic benefits for all.
What is the invisible hand?
Accounting information and analyses prepared for people outside the organization
What is financial accounting?
Located in the Himalayas is the tallest peak in the world
What is Mount Everest?
The amount of goods and services people can buy with the money they have
What is standard of living?
Shares of ownership in a company that can give right to vote in a company's board of directors.
What is stocks?
Economic system in which all or most factors of production and distribution are privately owned and operated for profit.
What is capitalism?
A specialized accounting book or computer program in which information from journals is accumulated into categories.
What is ledger?
Located within the city of Rome - this is the smallest nation in the world.
What is the Vatican City?
The factors are: Land, Labor, Capital, Knowledge & Entrepreneurship
What are the five factors of production that contribute to a country's wealth?
Corporate certificate indicating an investor has lent money to a firm or government. Need to be paid on maturity date with the agreed interest rate.
What is bond?
Degree of competition in which just a few sellers dominate the market
What is oligopoly?
Assets are equal to what you owe plus what you own. (assets = liability + equity)
What is the fundamental accounting equation?
The management of the money supply and interest rates by the Feds
What is monetary policy?
All people who stand to gain or lose by the policies and activities of a business. Everyone involved and effected
What are stakeholders?
Bonds that are not backed by any specific collateral such as land or equipment
What is debenture bond?
It is the general raise of prices of goods and services over time.
What is inflation?
Financial statement that reports a firm's financial condition at a specific time and it is composed of the three major accounts: assets, liabilities and owner's equity
What is balance sheet?
Moscow is the capital city of this country
What is Russia?
A person who risks time and money to start and manage a business
What is entrepreneur?
Buying several different investment alternatives to spread the risk of investing
What is diversification?
Federal government efforts to keep the economy stable by increasing or decreasing taxes or government spending.
What is fiscal policy?
The ease with which an asset can be converted into cash. Accountants list assets on the balance sheet based on this order.
What is liquidity?
Beijing is the capital city of this country
What is China?