ECONOMICS REVIEW

Duopsony

Market situation where there are only two buyers with many sellers

Poly

Seller

Sony

Buyer

Break Even

The total income equals the total operating cost

Physical Inventory

Consists of the actual counting or determination of the actual quantity of the materials on hand as of a given date

Patents

Which is an example of an intangible asset?

Tangible Assets

Are the main type of asset companies use to produce their products and services. (land, buildings, machinery, or inventory)

Intangible Assets

includes patents copyright, franchise

Supply

The quantity of a certain commodity that is offered for sale at a certain price at a given place and time

Demand

Consumer’s esire to purchase goods and services and willingness to pay a specific price for them

Goods

Physical items that satisfy human wants, provide utility or usefulness

Stocks

All or the quantity of products that a company has stored. Both raw materials and finished products can be considered products in stock

Supply

One of the most important factors that affect supply is the good’s price

Partnership

An association of two or more individuals for the purpose of operating a business as co-owners for profit

Company

Broader term encompassing various forms of business entities

Corporation

A legal entity that is separate and distinct from its owners which protects them even more effectively from any financial or legal blowback

Partnership

Consists of two or more people who combine their resources to form a business and agree to share risks, profits and losses

Sole proprietorship

Firm is owned and controlled by a single person. The owner of a sole proprietorship is entitled to all profits

BOOKKEEPING SYSTEM

The journal and the ledger together are known simply as __ of the company

Accounting System

Involve deeper analysis and interpretation of financial data to provide insights and support decision-making

Luxuries

These are products or services that are desired by human and will be purchased if money is available after the required necessitis have ben obtained

Necessities

These are products or services that are required to support human life

Product Goods and Services

Both essential components of a naiton’s economy. They often complement each other in meeting consumer needs and preferences

Utilities

Total satisfaction or benefit derived from consuming a good or service

Discount

Money paid for the use of borrowed capital

Credit

The ability of an individual or organization to obtian goods or services before payment, based on an agreement to pay later

Discount

occurs when a transaction requires that interest be paid in advance, usually at the start of the interest period

(Formula: D = F-P)

Profit

Financial amount that remains after subtracting the costs from the revenue

Book Value

Worth of property reflected in the book of records of a company

Fair Value

Worth of property determined by a uninterested person in order to establish an amount which is fair to the buyer and seller

Use Value

Amount of property which the owner believed to be its worth as an operating unit

Salvage Value

Estimated value that an owner is paid when the item is sold at the end of its useful life

Salvage Value

Scrap value of an asset is sometimes known as

Ordinary annuity

A type of annuity where the payments are made at the end of each payment period starting from the first period

Annuity Due

Payments are made at the beginning of each period starting from the first period

Deferred Annuity

First payment does not begin until some later date in the cash flow

Perpuity

When an annuity does not have a fixed time span but continues indefinitely

All of the above

The first cost of any property included: 1.) The original purchase price and freight and transportation charges 2.) Installation expenses 3.) Initial taxes and permits fee 4.) All of the above