FBLA Business Math

Access fees

Money paid to ISP for usage of Internet

Adjusted balance method

The difference between payments and credits during a month from the balance at the end of the previous month

Adjusted gross income

A tax term meaning gross income less adjustments

Airtime

The minutes you spend calling on a cellphone

Annual percentage rate (APR)

A percent that shows the ratio of finance charges to the amount financed

Area

The amount of surface an item has

Assessed value

A value put on property as a base for figuring amount of tax

Assets

Things of vale own by a person or business

Automatic teller machine (ATM)

A computer system that lets you withdraw or deposit money in your bank account without a teller's help

Average

A single number used to represent a group of numers

Average daily balance method

The periodic rate applied to the average daily balance in the account during a billing period

Balance

The amount of money in an account; the difference between two sides of an account

Balance sheet

A statement showing the assets, liabilities, and capital of a person or business for a certain date.

Bank discount

Interest collected in advance

Bank statement

A monthly report to a depositor showing deposits, payments, and balance in a checking account

Bankrupt

Legally insolvent and unable to pay debts

Base period

A period in time with which comparisons are made

Benefits

An addition to wages provided by the employer that are of value

Bodily injury insurance

Auto insurance covering liability for injury to other persons

Bond discount

When the amount of market value is less than the par value

Bond premium

When the market value of a bond is more than par value

Bonds

Written promise to repay in money loaded on the due date

Banus

Pay given to reward employees who make a significant contribution to the success of the company or whose work record is exceptional

Book value

Original cost less total depreciation date

Break-even point

The point at which income from sales equals total costs of producing and selling goods

Budget

Future spending goals

Byte

A character stored in a computer sstem

Capital Investment

The amount of cash you originally invested plus anything you spent for improvements

Carrying costs

The cost of holding inventory until it is issued

Cash advance

The cash received when money is borrowed on a credit card

Cash discount

Discount given for early payment of a bill

Cash payments record

A written record of money paid out.

Cash receipts record

A written record of money paid out

Cash value

The value of an insurance policy if it is cancelled; cash surrender value

Certificate of deposit (CD)

A time deposit or savings certificate

Check register

A reord of deposits and checks

Circle graph

A circle showing how parts relate to the whole and to each otehr

Closing costs

Fees and expenses paid to complete the transfer of ownership of a home.

Coinsurance

When the insured and the insurer share losses or costs.

Collision

Auto insurance that covers damage to the insured's car

Commission

A payment amount to a salesperson that may be an amount for each item sold or it may be a percent of the dollar value of sales.

Compound amount

The total in a savings account at the end of an interest period after compound interest is added.

Compound interest

The difference between the original principal and the compound amount; interest figured on interest after it has been added to principal

Comprehensive damage

insurance that covers damage or loss to your behicle from fire, theft, vandalism, and other causes,

Computer hardware

May include different sized devices such as handheld computers, notebook computers, desktop computers, and large computer systems.

Consumer price index (CPI)

A single number used to measure a change in consumer prices compared to a base year.

Contract employees

Temporary employees who receive their paychecks and benefits from the employment agency.

Cost of goods sold

The amount paid by the seller for the goods sold.

Cost of Living Adjustment (COLA)

A wage increase based on changes in the consumer price index (CPI)

Credit memo

A form that tells the buyer that the buyer's account has been reduced

Current ratio

Compares current assets to current liabilities

Current yield on bonds

Found by dividing the bond's annual interest income by the bond's price

Declining balance mthod

A way of figuring depreciation at a fixed rate on a decreasing balance; fixed-rate method

Debit card

A card that lets you pay for purchases using a terminal in a store

Debt to equity ratio

Found by dividing the long term liabilities of a firm by the firm's capital. Helps measure the amount of financial risk of a business

Deduction

Subtractions from gross pay

Deposit slip

A form used to list all money deposited in a bank

Depreciation

The decrease in value caused by wear and aging

Direct deposit

Transferring funds by a company directly into their employees due to a health condition or injury

Discount series

A trade discount that has two or more discounts

Domestic business

The manufacturing, purchasing and selling of goods and services within a country.

Double-time pay

Pay that is twice the regular pay

Down payment

The part of a price that is paid at the time of buying on the installment plan

Download

Receive files over the internet

E-business

Electronic business; doing business online

Eared income

Money received from working such as wages, salaries, and tips

Electronic funds transfer (EFT)

When funds are withdrawn from one account and deposited into another using computers

Employee

A person that works for others

Employer

A person or company that an employee works for

Exact interest method

interest based on exact time and a 365 day year

Executive recuiters

People hired to fine full time employees for management or specialized technical positions; headhunters

Exempt employees

Paid a salary and do not qualify for overtime pay

Exemption

An amount of income that is free from tax

Exporting

Selling of goods or services produced within your country and sold to other countries

Extension

The total price of each quantity on a sales slip, found by multiplying the quantity by the unit price

Factory overhead

The total cost of items such as rent, depreciation, head, light, power, insurance, supplies, and indirect labor used in a factory

Finance charge

The sum of the interest and any other charges on an installment load or purchase

First in, first out (FIFO)

A method used to find the value of ending inventory when the exact cost is not known, Merchandise purchased first is used first and the value of the ending inventory is based on the cost of the most recently purchased items

Fixed costs

Overhead items such as rent, salaries, heat, and insurance that remain the same no matter how much is produced and sold

Flat tax

A tax rate that stays the same for every person regardless of the amount of income they earn in a year

FOB

Free on board; a term used in price quotations to tell who will pay transportation costs

Forecasts

Estimate of future sales

Foreign exchange rate

The amount paid for another country's currency

Freight

A service for delivery of heavy, bulky goods

Frequency distrubution

A table of numbers arranged in order and with the frequency, or how often they occur, tallied

Fringe benefits

Paid vacations, sick leave, retirement plane, insurance, and other benefits beyond the wage or salary

Graduated commission

A pay system in which the rate of commision increases as the base increases

Gram

The basic unit of weight in the metric system

rand total

The corner total on a columnar table. Used to check accuracy of vertical and horizontal addition

Gross domestic product (GDP)

A system of a country that measure the total market value of goods and services produced within its borders

Gross income

Total income in a year

Gross pay

The total amount that an employee is paid

Gross profit

The difference between the net sales and the cost of goods sold

Gross profit margin

Comparison of gross profit to net sales

Health insurance

Protest policyholder from financial loss due to illness

Hit

The number of times a web page is visited

Home coverage area

One region of the country where you have wireless phone service

Homeowners insurance

An insurance policy that covers your home and protects you against risk

Horizontal bar graph

A graph with bars running to the left and right

Hourly rate

An amount of pay for each hour worked.