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Bluff Numbers Day One
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48
49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68
69 70 71
The established system of keeping track of money.
Accounting
A report that tells you a story about money coming in and
going out of a business. No one report tells the whole story.
financial statement
Anyone who can be affected by an organization's actions,
including managers, employees, customers, vendors, creditors,
and shareholders
stakeholder
A categorized list of words that are related to a particular topic.
taxonomy
The particular ways a business can be set up legally. These include sole proprietorship,
partnership, and corporation
business structures
The industries in which a business operates. These include
manufacturing, merchandising, and service
business types
A business that is separate and apart from any other business or person. One or more people may
own this. The owners are protected from personal liability
for the company.
corporation
A distinct thing such as a company, a firm, a business, or a
set of principles or rules
entity
A business structure that combines the limited personal
liability of a corporation with the tax benefits of a partnership or a
sole proprietorship.
limited liability company
Companies that produce goods. Usually produce wholesale goods to sell to retailers (or
merchandisers) who then sell the goods to the public for a markup.
manufacturing company
Companies sell ready-made products to their customers
merchandising company
A business that is owned by two or more people. The owners have
personal liability for the company.
partnership
Service companies sell a service rather than a product or a thing to
their customers.
service company
A small or very big business that is owned by one person or a
married couple. The owner(s) has (have) personal liability for the
company sole proprietorship
A specific type of fraud; misrepresenting the truth on any one of the financial statements.
accounting fraud
The professional organization that CPAs may join. The AICPA
creates and administers the CPA exam and promotes CPAs in a
positive light
American Institute of Certified Public Accountants (AICPA)
Those who run the company and are responsible for its success or
failure
executives
A private not-for-profit board that establishes specific rules and
regulations that the SEC adopts and that accountants must follow
Financial Accounting Standards Board (FASB)
Misrepresenting the truth, cheating, or deceiving others on
purpose.
fraud
Guidelines that accountants use to prepare financial statements,
making multiple statements comparable to one another.
generally accepted accounting principles (GAAP)
The government agency that collects taxes and enforces tax
laws.
Internal Revenue Service (IRS)
Principle that requires accounting rules to be followed at all times. Same as principle of regularity.
principle of consistency
Principle that assumes the business won’t be interrupted.
principle of continuity
Principle that says financial statements can’t contain
counterbalancing entries simply to make a company look better
than it is.
principle of non-compensation
Principle requiring that each transaction be accounted for in a
given period and split across many periods if necessary
principle of periodicity
Principle requiring that statements follow the same basic
outline
principle of permanence of methods
Principle that declares that preparers of statements must use
caution when recording transactions and error on the side
of financial safety.
principle of prudence
Principle that requires accounting rules to be followed at all times.
Same as principle of consistency.
principle of regularity
Principle that says that statements must be presented honestly and accurately at all
times. principle of sincerity
The government agency that regulates securities (stocks and
bonds), enforces accounting laws, and dictates financial
reporting rules.
Securities and Exchange Commission (SEC)
A forced contribution of money to meet the needs and wants of
government.
Tax
A debt instrument is a legal contract—and often called an “indenture.”
Bond
The stages that a business moves through, from an idea
through startup, growth or takeoff, maturity, decline, and
closing down (cessation of operation).
business life cycle
A transaction in which an employer makes a lump-sum payment to compensate an
employee for leaving or retiring early from a job.
Buyout
Any form of wealth that can be used to create more wealth, such as cash, which can be invested
to generate income.
Capital
A legally recognized form of organizing a business that
protects its owners from being personally responsible for
business debts.
Corporation
Owing money, goods, or services to someone else.
Debt
A person who takes initiative in business, organizes and
manages business resources and operations, and assumes the
risks of the business. entrepreneur
A broad category of investments that includes bonds. Get their name from the fact that the
stream of payments are fixed by contract. Corporations and the government can issue a variety
of these securities. fixed income security
Something bought and sold that cannot be touched—for example,
legal advice. intangible
Intangible property that is a result of something created by the mind—for example, trademarks, and
patents.
intellectual property
In bankers’ terms, money paid for the use of another person’s
money. Interest
Legal responsibility for damage or for debt.
liability
Selling a business capital item such as machinery in order to have access to ready cash.
liquidation
The percentage of total industry sales that a single company
makes on a particular product. market share
The world of business, trade, and economics.
marketplace
A legal form of organizing a business in which owners share
profits and are personally responsible for debts of the
business.
partnership
The money originally invested or the amount borrowed on which
interest is calculated. Principal
An experimental model of a product.
prototype
A legal form of business organization in which a single
individual is personally liable for business debts.
sole proprietorship
A share of ownership in a corporation
stock
Top management’s “game plan” for achieving targeted, long-term
objectives. Strategy
Estimating the value or worth of something (such as a building or machinery owned by a business).
Valuation
A firm that often can have access to a great amount of capital and expertise to help your firm—all in
exchange for a substantial ownership stake. Though, these only invest in firms that offer the
prospect of becoming very profitable.
venture capitalist firm
A professional who measures and assesses financial
information for an individual or firm.
accountant
The cycle of purchasing inventory and then converting that
inventory back into cash through sales.
Cash flow cycle
The corporate officer responsible for financial risks, record keeping, and financial reporting in a firm.
CFO (Chief Financial Officer)
All business costs. These are deducted from revenue to
determine net income (profit or loss).
expense
An analyst who studies financial information for a firm, ranging
from cash flow analysis to profit forecasting.
Financial manager
A figure representing a firm’s profit or loss for a period.
Net income
The process of bringing a new product to market, including
engineering and market research.
Product development cycle
The decline of a product in the market due to the introduction of
better competitor products or rapid technology developments.
obsolescence
Dollar amounts earned by a firm from selling products, services, or
both revenue
A charge imposed by the government
Tax
The satisfaction one receives from a good (a product, service
or combination thereof) utility
Gifts made in a will
bequests
The expense required to acquire or produce something.
cost
A pool of donated money that is usually invested. The earnings
from those investments are used to fund an organization’s goals.
Endowment
An organization whose purpose is to support activities of public or private interest. It is not operated solely for the purpose of making
a profit.
Not-for-profit organization
Money earned after expenses are subtracted from revenue.
profit
A measure of a company’s profitability, usually measured as
a percentage. Profit margin