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Study sets matching "financial chapter 3"

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Study sets matching "financial chapter 3"

17 terms
Financial Algebra - Chapter 3
check
EFT
payee
drawer
a written order telling a bank to pay money from an account t…
electronic funds transfer from one bank to another
the receiver of funds from a check or EFT
the account owner of the check that was written
check
a written order telling a bank to pay money from an account t…
EFT
electronic funds transfer from one bank to another
11 terms
Financial Accounting Chapter 3
Accrual Basis Accounting
Cash Basis Accounting
Expense Recognition Principle (Matchin…
Expenses
Recording revenues when earned and expenses when incurred, re…
Recording revenues when dash is received and expenses when ca…
Expenses are recorded when incurred in earning revenue.
Decreases in assets or increases in liabilities from ongoing…
Accrual Basis Accounting
Recording revenues when earned and expenses when incurred, re…
Cash Basis Accounting
Recording revenues when dash is received and expenses when ca…
41 terms
Financial Literacy - Chapter 3 - Terms
advertising
bait and switch
banner ads
branding strategy
informing consumers about products and encouraging them to buy
an illegal sales technique in which the business advertises a…
Internet ads that span the top, bottom, or sides of a web page
carrying well-known brand names to attract customers who are…
advertising
informing consumers about products and encouraging them to buy
bait and switch
an illegal sales technique in which the business advertises a…
73 terms
Financial Accounting Chapter 3
Accrual-basis accounting
the revenue recognition principle
the matching principle
Accruals
Recording revenues when earned (the revenue recognition princ…
requires that revenue be recognize in the accounting period w…
match expenses against the revenues earned in the SAME period…
occur when the cash flow occurs after either the expense is i…
Accrual-basis accounting
Recording revenues when earned (the revenue recognition princ…
the revenue recognition principle
requires that revenue be recognize in the accounting period w…
39 terms
Financial Algebra Chapter 3
3-1... Checking Account
3-1... Canceled
3-1... EFT (Electronic Funds Transfer)
3-1 ... Hold
account at a bank that allows a customer to deposit money, ma…
when the money of a check is received, the check becomes this…
moving funds electronically from an account in one bank, to a…
when the funds are not available for a check to be cashed
3-1... Checking Account
account at a bank that allows a customer to deposit money, ma…
3-1... Canceled
when the money of a check is received, the check becomes this…
73 terms
Financial Accounting Chapter 3
Accrual-basis accounting
the revenue recognition principle
the matching principle
Accruals
Recording revenues when earned (the revenue recognition princ…
requires that revenue be recognize in the accounting period w…
match expenses against the revenues earned in the SAME period…
occur when the cash flow occurs after either the expense is i…
Accrual-basis accounting
Recording revenues when earned (the revenue recognition princ…
the revenue recognition principle
requires that revenue be recognize in the accounting period w…
10 terms
Financial Accounting Chapter 3
Operating Activities
Time Period Assumption
Going Concern Assumption
Revenue Recognition Principle
Include buying goods & services from suppliers, employees and…
dividing the company's long life into shorter chunks of time…
we assume the company will continue into the indefinite future.
revenue is recognized when earned.
Operating Activities
Include buying goods & services from suppliers, employees and…
Time Period Assumption
dividing the company's long life into shorter chunks of time…
17 terms
Financial Math Chapter 3
Inflation
Disinflation
Reflation
Hyperinflation
an increase in the general level of prices for goods and serv…
when prices are rising at a slow rate
when prices are high but then drop due to lower demand, then…
when prices are rising so rapidly that they are out of control
Inflation
an increase in the general level of prices for goods and serv…
Disinflation
when prices are rising at a slow rate
25 terms
Chapter 3 Financial Math
Checking Account
Check
Electronic Funds Transfer
Deposit Slip
a bank account that allows you to deposit money, withdraw mon…
a written order used to tell the bank to pay money from the a…
moving funds from an account in one bank to an account in ano…
a form to fill out when adding money to a bank account
Checking Account
a bank account that allows you to deposit money, withdraw mon…
Check
a written order used to tell the bank to pay money from the a…
50 terms
Financial Algebra Chapter 3 Vocab
annual compounding
annual percentage rate (APR)
annual percentage yield (APY) -
automated teller machine (ATM)
A method for calculating interest so that it is paid once a y…
The interest rate paid per year or charged per year.
An annual rate of interest that takes into account the effect…
Provides 24-hour bank access to make deposits, transfers, and…
annual compounding
A method for calculating interest so that it is paid once a y…
annual percentage rate (APR)
The interest rate paid per year or charged per year.
29 terms
Financial Accounting Chapter 3
Accrual Basis Accounting
Cash Basis Accounting
Expense Recognition Principle (Matchin…
Expenses
Recording revenues when earned and expenses when incurred, re…
Recording revenues when cash is received and expenses when ca…
Expenses are recorded when incurred in earning revenue. The p…
Decreases in assets or increases in liabilities from ongoing…
Accrual Basis Accounting
Recording revenues when earned and expenses when incurred, re…
Cash Basis Accounting
Recording revenues when cash is received and expenses when ca…
19 terms
CHAPTER 3: FINANCIAL INSTITUTIONS
AUTOMATED TELLER MACHINE
BALANCE
BANK STATEMENT
CERTIFICATE OF DEPOSIT
A COMPUTER SYSTEM THAT LETS YOU WITHDRAW OR DEPOSIT MONEY IN…
THE AMOUNT OF MONEY IN AN ACCOUNT; THE DIFFERENCE BETWEEN THE…
A MONTHLY REPORT TO A DEPOSITOR SHOWING DEPOSITS, PAYMENTS, A…
A TIME DEPOSIT OR SAVINGS CERTIFICATE
AUTOMATED TELLER MACHINE
A COMPUTER SYSTEM THAT LETS YOU WITHDRAW OR DEPOSIT MONEY IN…
BALANCE
THE AMOUNT OF MONEY IN AN ACCOUNT; THE DIFFERENCE BETWEEN THE…
50 terms
Financial Algebra Chapter 3 Vocab
annual compounding
annual percentage rate (APR)
annual percentage yield (APY) -
automated teller machine (ATM)
A method for calculating interest so that it is paid once a y…
The interest rate paid per year or charged per year.
An annual rate of interest that takes into account the effect…
Provides 24-hour bank access to make deposits, transfers, and…
annual compounding
A method for calculating interest so that it is paid once a y…
annual percentage rate (APR)
The interest rate paid per year or charged per year.
19 terms
Financial Accounting - Chapter 3
accounting period concept
accrual basis of accounting
accrued expenses
accrued revenues
The accounting concept that assumes that the economic life of…
Under this basis of accounting, revenues and expenses are rep…
Expenses that have been incurred but not recorded in the acco…
Revenues that have been earned but not recorded in the accoun…
accounting period concept
The accounting concept that assumes that the economic life of…
accrual basis of accounting
Under this basis of accounting, revenues and expenses are rep…
8 terms
Chapter 3 Financial Services Terms
Budget
Cash Flow Statement
Carbon Check
Envelope System
A written cash flow plan
A summary that shows total income and spending for a given ti…
A copy of each check you write
Series of envelopes that are divided into categories (food, e…
Budget
A written cash flow plan
Cash Flow Statement
A summary that shows total income and spending for a given ti…
12 terms
financial chapter 3
of all its communications with shareho…
the income statement reports the resul…
The ___lists the firm's assets as well…
Assets are listed in their order of
annual report
earnings
balance sheet
liquidity
of all its communications with shareho…
annual report
the income statement reports the resul…
earnings
28 terms
Financial Chapter 3
Activity drivers
Bill of lading
Conversion process
Cost behavior
Bases that reflect the consumption or provision of resources
A shipping agreement between the business and the common carr…
A series of interrelated activities designed to produce the g…
How a cost reacts to change in the level of operating activity
Activity drivers
Bases that reflect the consumption or provision of resources
Bill of lading
A shipping agreement between the business and the common carr…
40 terms
Financial Accounting Chapter 3
Accounting can be based on either the…
_____ _____ records the impact of a bu…
_____-_____ _____ records only cash tr…
GAAP (Generally Accepted Accounting Pr…
Accrual; cash
Accrual accounting
Cash-basis accounting
Accrual
Accounting can be based on either the…
Accrual; cash
_____ _____ records the impact of a bu…
Accrual accounting
12 terms
Personal Financial Literacy - Chapter 3
Cash inflow
Cash outflow
Expense
Fixed expense
Money received.
Money spent.
Anything on which money is spent.
An expense that remains the same from period to period
Cash inflow
Money received.
Cash outflow
Money spent.
20 terms
Chapter 3: Fundamental Financial Accounting Concepts
Account Balance
Book of Original Entry
Chart of Accounts
Closing Entries
Difference between total debit and total credit amounts in an…
A journal in which a transaction is first recorded.
List of all ledger accounts and their corresponding account n…
Entries that transfer the balances in the temporary accounts…
Account Balance
Difference between total debit and total credit amounts in an…
Book of Original Entry
A journal in which a transaction is first recorded.
73 terms
Financial Accounting Chapter 3
Accrual-basis accounting
the revenue recognition principle
the matching principle
Accruals
Recording revenues when earned (the revenue recognition princ…
requires that revenue be recognize in the accounting period w…
match expenses against the revenues earned in the SAME period…
occur when the cash flow occurs after either the expense is i…
Accrual-basis accounting
Recording revenues when earned (the revenue recognition princ…
the revenue recognition principle
requires that revenue be recognize in the accounting period w…
73 terms
Financial Accounting Chapter 3
Accrual-basis accounting
the revenue recognition principle
the matching principle
Accruals
Recording revenues when earned (the revenue recognition princ…
requires that revenue be recognize in the accounting period w…
match expenses against the revenues earned in the SAME period…
occur when the cash flow occurs after either the expense is i…
Accrual-basis accounting
Recording revenues when earned (the revenue recognition princ…
the revenue recognition principle
requires that revenue be recognize in the accounting period w…
14 terms
Financial Accounting Chapter 3
Operating Activities
Revenues
Expenses
Net Income
the day-to-day functions involved in running a business and a…
the amounts a business charges its customers when it provides…
Costs of operating the business, incurred to generate revenue…
The excess of revenues over expenses and indicates the amount…
Operating Activities
the day-to-day functions involved in running a business and a…
Revenues
the amounts a business charges its customers when it provides…
21 terms
Financial Lit Chapter 3
demand
quantity demanded
law of demand
demand schedule
the relationship between the price and the quantity demanded…
the amount of goods and services purchased at a given price
the law that states there is an inverse relationship between…
a table that indicates the quantity of a good or service cons…
demand
the relationship between the price and the quantity demanded…
quantity demanded
the amount of goods and services purchased at a given price
27 terms
Financial Accounting Chapter 3
Cash basis accounting
accural basis accounting
revenue recognition principle
matching principle
revenue recorded only when cash recieved, expenses recorded o…
revenue recorded when earned, expenses recorded when incurred…
revenue should be recorded when earned, dictates when to reco…
expenses are recorded when they are incurred, expense is matc…
Cash basis accounting
revenue recorded only when cash recieved, expenses recorded o…
accural basis accounting
revenue recorded when earned, expenses recorded when incurred…
17 terms
Chapter 3: Financial Ratios
Current Ratio... Minimum value: 1
Quick Ratio... Ideal range: .6-.8
Solvency Ratio... Minimum value: 1, shoul…
Debt/Equity Ratio
CA/CL
CA-Inventory/CL
Total Assets/Total Liabilities
Total Liabilities/Total Equity
Current Ratio... Minimum value: 1
CA/CL
Quick Ratio... Ideal range: .6-.8
CA-Inventory/CL
25 terms
Financial Economics Chapter 3
primary market
secondary market
initial public offerings (IPOs)
underwriters
securities marketed to the public by investment bankers
trading of already-issued securities among investors -- does…
stocks issued by a formerly privately owned company that is g…
public offerings of both stocks and bonds typically are marke…
primary market
securities marketed to the public by investment bankers
secondary market
trading of already-issued securities among investors -- does…
73 terms
Financial Accounting Chapter 3
Accrual-basis accounting
the revenue recognition principle
the matching principle
Accruals
Recording revenues when earned (the revenue recognition princ…
requires that revenue be recognize in the accounting period w…
match expenses against the revenues earned in the SAME period…
occur when the cash flow occurs after either the expense is i…
Accrual-basis accounting
Recording revenues when earned (the revenue recognition princ…
the revenue recognition principle
requires that revenue be recognize in the accounting period w…
23 terms
Financial Accounting - Chapter 3
accounting cycle
fiscal year
calendar year
chart of accounts
the sequence of activities to accumulate and report financial…
one year accounting period
when fiscal year ends on December 31
lists the titles and numbers of all accounts found in the gen…
accounting cycle
the sequence of activities to accumulate and report financial…
fiscal year
one year accounting period
73 terms
Financial Accounting Chapter 3
Accrual-basis accounting
the revenue recognition principle
the matching principle
Accruals
Recording revenues when earned (the revenue recognition princ…
requires that revenue be recognize in the accounting period w…
match expenses against the revenues earned in the SAME period…
occur when the cash flow occurs after either the expense is i…
Accrual-basis accounting
Recording revenues when earned (the revenue recognition princ…
the revenue recognition principle
requires that revenue be recognize in the accounting period w…
34 terms
Financial Planning Chapter 3: Financial Statements, Tools, and Budgets
Financial Goals
Financial Strategies
Financial Statements
Balance Sheet or Net Worth Statement
Specific objectives that are accomplished through financial p…
Preestablished action plans implemented in specific situations.
Snapshots that describe an individual's or family's current f…
Snashot of assets, liabilites, and net worth on a particular…
Financial Goals
Specific objectives that are accomplished through financial p…
Financial Strategies
Preestablished action plans implemented in specific situations.
73 terms
Financial Accounting Chapter 3
Accrual-basis accounting
the revenue recognition principle
the matching principle
Accruals
Recording revenues when earned (the revenue recognition princ…
requires that revenue be recognize in the accounting period w…
match expenses against the revenues earned in the SAME period…
occur when the cash flow occurs after either the expense is i…
Accrual-basis accounting
Recording revenues when earned (the revenue recognition princ…
the revenue recognition principle
requires that revenue be recognize in the accounting period w…
56 terms
Financial Literacy - Chapter 3 - Terms
advertising
bait and switch
banner ads
branding strategy
informing consumers about products and encouraging them to buy
an illegal sales technique in which the business advertises a…
Internet ads that span the top, bottom, or sides of a web page
carrying well-known brand names to attract customers who are…
advertising
informing consumers about products and encouraging them to buy
bait and switch
an illegal sales technique in which the business advertises a…
Financial Accounting Chapter 3
accrual basis of accounting
revenue recognition principle
expense recognition (or matching) prin…
unadjusted trial balance
accounting procedures whereby sales revenue is recorded when…
accounting principle requiring that sales revenues be recogni…
accounting guideline that states that net income is determine…
list of general ledger accounts and their balances taken befo…
accrual basis of accounting
accounting procedures whereby sales revenue is recorded when…
revenue recognition principle
accounting principle requiring that sales revenues be recogni…
73 terms
Financial Accounting Chapter 3
Accrual-basis accounting
the revenue recognition principle
the matching principle
Accruals
Recording revenues when earned (the revenue recognition princ…
requires that revenue be recognize in the accounting period w…
match expenses against the revenues earned in the SAME period…
occur when the cash flow occurs after either the expense is i…
Accrual-basis accounting
Recording revenues when earned (the revenue recognition princ…
the revenue recognition principle
requires that revenue be recognize in the accounting period w…
12 terms
Financial management Chapter 3
Average Tax rate
Marginal tax rate
Cash flow to investors
Statement of cash flows
total taxes paid divided by taxable income
the tax rate paid on the last dollar of income earned.
The cash flow that a firm generates for its investors in a gi…
a financial statement that shows a firms cash receipts and ca…
Average Tax rate
total taxes paid divided by taxable income
Marginal tax rate
the tax rate paid on the last dollar of income earned.
29 terms
Chapter 3 Financial literacy
sharing
saving
short term
medium term
Thinking about money in terms of what your time and money can…
Putting money away for Long- Term, Medium-Term and Short- Ter…
now-5 years
5-10 years
sharing
Thinking about money in terms of what your time and money can…
saving
Putting money away for Long- Term, Medium-Term and Short- Ter…
8 terms
Financial Accounting Chapter 3
Prepaid Expenses
Unearned Revenue
Accrued Revenue
Accrued Expenses
Advance of payment of future expenses and are recorded as ass…
Advance receipt of future revenues and are recorded as liabil…
Unrecorded unrecorded revenues that have been earned for whic…
Unrecorded expenses that have been incurred and for which cas…
Prepaid Expenses
Advance of payment of future expenses and are recorded as ass…
Unearned Revenue
Advance receipt of future revenues and are recorded as liabil…
20 terms
Financial Lit Chapter 3
Money Management
Safe- deposit box
Personal Financial Statement
Personal balance sheet
Is planning how to get the most from your money.
A small secure storage compartment that you can rent in a ban…
Document that provides information about an individual's curr…
A net worth statement, is a financial statement that lists it…
Money Management
Is planning how to get the most from your money.
Safe- deposit box
A small secure storage compartment that you can rent in a ban…
Financial Accounting - Chapter 3
Analyzing transactions
Accounting information systems rely on…
Transactions
Double-entry system
the process of identifying the specific effects of economic e…
the accounting cycle.
economic events that must be captured in the Accounting Infor…
Each transaction must affect two or more accounts to keep the…
Analyzing transactions
the process of identifying the specific effects of economic e…
Accounting information systems rely on…
the accounting cycle.
35 terms
Chapter 3 Principles of Financial Accounting
Accrual-Basis Accounting
Accruals
Accrued Expenses
Accrued Revenues
accounting basis in which companies record transactions that…
adjusting entries for either accrued revenues of accrued expe…
expenses incurred but not yet paid in cash or recorded p.106
revenues for services performed but not yet received in cash…
Accrual-Basis Accounting
accounting basis in which companies record transactions that…
Accruals
adjusting entries for either accrued revenues of accrued expe…
18 terms
Financial Accounting Chapter 3
Accounting Period Concept
Accrual Basis of Accounting
Revenue Recognition Concept
Matching Concept
assumes that the economic life of a business can be divided i…
revenues and expenses are reported in the income statement in…
supports reporting revenues when the service is provided to c…
expenses are matched with the revenue generated during a peri…
Accounting Period Concept
assumes that the economic life of a business can be divided i…
Accrual Basis of Accounting
revenues and expenses are reported in the income statement in…
29 terms
Chapter 3 Financial literacy
sharing
saving
short term
medium term
Thinking about money in terms of what your time and money can…
Putting money away for Long- Term, Medium-Term and Short- Ter…
now-5 years
5-10 years
sharing
Thinking about money in terms of what your time and money can…
saving
Putting money away for Long- Term, Medium-Term and Short- Ter…
18 terms
Financial Accounting - Chapter 3
Fiscal Year
T-Account
Account Balance
Double-Entry Accounting
The year about which financial statements report.
The account title is written across the top of the horizontal…
The difference between the total debit and credit amounts.
Debiting an account and crediting an account.
Fiscal Year
The year about which financial statements report.
T-Account
The account title is written across the top of the horizontal…
8 terms
Chapter 3: Financial Management
Profitability Ratio
Asset Utilization Ratios
Liquidity Ratios
Debt Utilization Ratios
to measure return (profit) on sales, total assets, and shareh…
to measure the speed or efficiency of turning over assets res…
to emphasize the ability to pay off short-term obligations as…
to evaluate the overall debt position of the firm compared to…
Profitability Ratio
to measure return (profit) on sales, total assets, and shareh…
Asset Utilization Ratios
to measure the speed or efficiency of turning over assets res…
21 terms
Financial Accounting Chapter 3
Accrual Basis Accounting
Cash Basis Accounting
Revenue Recognition Principle
Prepaid Expenses
Uses the adjusting process to recognize revenue when earned a…
Revenues are recognized when cash is received and expense are…
Requires revenue to be recorded when earned, not before and n…
Items paid for in advance of receiving their benefits. Prepai…
Accrual Basis Accounting
Uses the adjusting process to recognize revenue when earned a…
Cash Basis Accounting
Revenues are recognized when cash is received and expense are…
financial markets chapter3
Sole Business
partnership
corporation
Stock certificate
A business owned by one person
A business that is owned by two or more people
A business that operates as a legal entity separate from any…
A document that represents ownership in a corporation
Sole Business
A business owned by one person
partnership
A business that is owned by two or more people
12 terms
Financial Accounting Chapter 3
Revenue Recognition Principle
Expense Recognition... Matching Principle
Accrual-Basis Acounting
Cash-Basis Accounting
revenues are recorded in the period in which goods/services a…
expenses are reported in the same period as the revenues they…
revenue recognition & expense recognition principles
when cash received/paid
Revenue Recognition Principle
revenues are recorded in the period in which goods/services a…
Expense Recognition... Matching Principle
expenses are reported in the same period as the revenues they…
21 terms
Financial Accounting Chapter 3
Cash Basis Accounting
Accrual Basis Accounting
Time Period Concept
Fiscal Year
Accounting method that records revenues only when cash is rec…
Accounting method that record revenues when earned and expens…
Assumes that the business activities can be sliced into small…
An accounting year of any 12 consecutive months that may or m…
Cash Basis Accounting
Accounting method that records revenues only when cash is rec…
Accrual Basis Accounting
Accounting method that record revenues when earned and expens…
8 terms
Financial Accounting Chapter 3
Operating Expenses
Operating Income
Other Items
Cash Basis Accounting
Supplies Expense, Wages Expense, Rent Expense, Insurance Expe…
Net sales less cost of goods sold and other operating expenses.
Interest Revenue, Interest Expense, Losses/Gains on Sale of I…
Records revenues when cash is received and expenses when cash…
Operating Expenses
Supplies Expense, Wages Expense, Rent Expense, Insurance Expe…
Operating Income
Net sales less cost of goods sold and other operating expenses.
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