THE GLOBAL ECONOMY
organizations with multinational management (operations) and ownership that manufacture and market products in many different countries
What is the difference between Accounting and Bookkeeping?
Accounting measures, classifies, analyzes, and communicates financial information to people inside and outside a company
Bookkeeping is one function of accounting, which includes recording a company’s financial transactions
Entrepreneurship is the process of taking risks to try to create a new business
The Income Statement is also known by this more common name.
What is the P and L or P/L
A tariff is a form of tax imposed on imports from another country
Who are the United States largest import partners?
European Union
China
Pacific Rim
Canada
Mexico
Accounting for "internal" purposes by employees who are accountants is known as which type of accounting?
Managerial.
We discussed 5 characteristics of a "successful" entrepreneur, what were 3 of them?
Critical thinking.
Problem solving.
Creativity and innovative thinking.
Time and energy management.
Personal and professional selling
What are the two types of assets found on the Balance Sheet?
Current and Long Term Assets
What are the two types of entrepreneurs?
Opportunity Entrepreneurs
Necessity Entrepreneurs
Name 3 negatives of International Trade.
Lost jobs
Increased wealth discrepancies
Stolen intellectual property and secrets
Currency manipulation
These principles are what ensure the consistency and accuracy of ALL financial statements prepared by accountants within the United States.
Generally Accepted Accounting Principles (GAAP)
What are the 2 questions every entrepreneur should be able to answer before they begin their business?
What is your “why”?
Am I financially ready for the journey?
What is the accounting equation?
Assets = Liabilities + Owner's Equity
What are the 2 types of research undertaken by entrepreneurs and business executives?
Qualitative Research and Analysis
Quantitative Research and Analysis
What are the 2 reasons for trade among people and/or nations?
Absolute Advantage
Comparative Advantage
The Accounting Process is made up of these six steps.
1.Locate and sort records (collection),
2.Record daily transactions in journals (recording),
3.Organize journal entries in categories within a ledger (classification),
4.Test the accuracy of the ledger by running a trial balance (summarization),
5.Issue financial statements (reporting), and
6.Assess the firm’s financial condition via ratio analysis (analysis).
What are the 6 forms of entrepreneurship?
Intrapreneur.
Entrepreneurial team.
Micropreneur.
Solopreneur.
Side hustle.
Freelancer.
Financial ratios which compare Assets to Liabilities are known as?
Liquidity Ratios: these include Current Ratio and Acid Test Ratio.
To secure financing
To help you think through important details
Describe what the "balance of trade" is, and state whether or not the United States has a DEFICIT or SURPLUS.
The balance of trade is the value of a country’s exports compared to the value of its imports over a particular period of time - DEFICIT since 1970s
The accuracy of the Ledger Data is verified PRIOR to entry into the Journal by conducting what?
A Trial Balance
Name 6 of the 9 sources of financing for a new start up business.
Savings, Family & Friends, Supplier arrangements, Banks, SBA loans, Angel and Venture Capital Investors, Public Stock Offerings, Micro Loans and Crowd Funding, Community/Economic Development Funds
What are the 3 categories of cash disbursements on the Statement of Cash Flows?
Cash Flows from:
Operating Activities
Investing Activities
Financing Activities
What are the FOUR forms of business ownership?
Sole Proprietorship
Partnership
Limited Liability Corporation
Corporation