Upgrade to remove ads
Terms in this set (43)
The practice and body of knowledge concerned with recording transactions, keeping financial records, performing audits, advising on taxation issues, and reporting financial information.
Process that occurs in order to verify that a company is in fact in compliance with the applicable rules and regulations. This involves the sometimes uncomfortable scrutinization of a company's documents and operations.
Break Even Point
Occurs when the inputs and outputs of a business are equal and a profit is being neither made nor lost.
Capital Gain or Loss
The difference between the sales price and the purchase price of an asset; this could be either positive or negative.
Conforming to a request or demand and rules and policies
Requirements imposed to ensure that a company is acting responsibly and ethically.
Helps advise managers on the best course of action based on cost efficiency and capability
The automatic or semi-automatic computational process of discovering patterns in large data sets
Dodd-Frank Reform Act
Legislation which brought the most significant changes to financial regulation since the regulatory reform during the Great Depression
Relates more to whether a company has a code of conduct or a code of values that describe the way in which the company and its employees are expected to act and behave
Federal Trade Commission
An agency of the United States government that focuses on promoting a competitive market and protecting consumers from false advertising and unfair business practices
Documentation that provides information about the performance and changes in the fiscal position of an enterprise
Gramm-Leach Bliley Act
This legislation requires financial-service providers to explain their information-sharing practices and to safeguard sensitive data
Traditional risk-financing tool used to transfer the financial hazard of risk
The possibility that an event will occur and positively affect the achievement of objectives
Has the same force of law as a traditional piece of legislation; they are rules that an authoritative body, such as a federal agency, created. Failure to comply will result in facing penalties or other consequences
A probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action
Policies, procedures, and practices involved in the identification, analysis, assessment, and control of any negative occurrence in an effort to mitigate or eliminate such hazards
Risk Management Policy
An organization's written statement that sets out its approach to an appetite for any hazard or negative occurrence
Legislation passed in 2002 by Congress that requires significantly tighter responsibilities for corporations when reporting financial statements, and it also requires a company's CEO or CFO to certify all external financial reports
A person who serves as a trusted agent in negotiations or transactions - usually in fields such as finance, insurance, and real estate
Financial plan that includes both financial and non-financial information. Its most obvious features are a projection of revenue and expenses. Also a forecasting document which businesses use as a financial control tool to monitor activities within a business
System of rules, practices, and processes by which a company is controlled and directed. This structure provides the framework for attaining a company's objectives and managing the the interests of a company's many stakeholders
The residual interest in the assets of the entity after deducting all the liabilities. A representation of what the business owes to its owners and shows the capital left in the business after assets of the entity are used to pay off any outstanding liabilities
The central bank of the United States which regulates currency and controls interest and inflation rates in order to create a stable monetary system
Financial Management Information System
Automated financial operations which would include information system(s) designed to track financial events and summarizes information, support adequate management reporting, and be designed with good relationships between software, hardware, personnel, procedures, controls and data
Industry which creates and sells financial products or services
Managerial Cost Accounting
Method by which all costs incurred in carrying out an activity or accomplishing a purpose are collected, classified, and recorded. Data is then summarized and analyzed to arrive at a selling price or to determine where savings are possible
Price Earnings Ratio
Ratio for valuing a company which measures its current share price relative to its per-share earnings
Investors who purchase shares of stock in a corporation.
Key part of an individual's professional life and ongoing development made up of networks of relationships among persons, firms, and institutions in a society
Statement of Changes in Equity
Statement that details the change in owners' equity over an accounting period by presenting the movement in reserves comprising the shareholders' equity
A person interested in the performance of a company for reasons other than stock performance
Refers to the amount of uncertainty or risk concerning the size of changes in a security's value
Report released (on a fixed date every month) by banks that lists deposits, withdrawals, checks paid, interest earned, and service charges or penalties incurred on an account. It shows the cumulative effect of these transactions the account's balance, up to the date the report was prepared
Cash flow statement
Summary of the actual or anticipated incoming and outgoing cash in a firm over an accounting period. It answers the questions "Where the money came from?" and "Where it went?" It assesses the amount, timing, and predictability of cash-inflows and cash-outflows, and are used as the basis for budgeting and business planning
Record of a borrower's payment behavior that reflects his or her ability to repay a loan. It is a critical factor used in a credit rating, and it is used by lending institutions as a qualifier for new loans
Tokens used as money in a country. In addition to the metal coins and paper bank notes, it also includes checks drawn on bank accounts, money orders, travelers checks, and will soon include electronic money or digital cash
Summary of the profitability of a business organization over a certain period. It itemizes the revenues and expenses that led to the current profit or loss
The commitment of money or capital to purchase financial instruments or other assets in order to gain profitable returns in form of interest, income, or appreciation of the value of the instrument
A document given to an employee at the end of a pay period that gives a breakdown of the gross amount of money made, the amount of money received, deductions, and any other relevant information
Tax paid on income
Time value of money
value of money figuring in an amount of interest of a specified period of time. The idea is that a dollar is worth more now because it can begin to accrue interest sooner than a dollar received at a later date.
THIS SET IS OFTEN IN FOLDERS WITH...
DECA: Finance Terms
YOU MIGHT ALSO LIKE...
Series 7 Top-Off Exam Preparation | Knopman Marks…
DECA Finance Cluster Exam
Business Management chapter 15
Finance and investment (Unit 11) // glossary of bu…
OTHER SETS BY THIS CREATOR
BIO QUIZ ANIMAL BEHAVIOR
AP Biology Neuron
AP Biology Mitosis/Meiosis
AP Biology Chapter 9