Business Words
Accounting → the process of planning, analyzing, reporting, recording, categorizing, and interpreting financial data
Accounting system: a planned process designed to complete financial data and summarize the results in accounting records and reports
Account: a record that summarizes all the transactions about a single item in the accounting equation
Account number: the number assigned to an account
Accounts payable: amounts to be paid in the future (later)
Accounts receivable: amounts to be received in the future (later)
Account title: the name given to an account
Asset: anything of value that is owned
Calculator tape: unc thing with the numbers they use back then
Capital account: used to summarize the owner’s equity in a business
Chart of accounts: a list of accounts used by a business
Check: business form ordering a bank to pay cash from a bank account
Credit: amount recorded on the right side of T-account
Debit: amount recorded on the left side of T-account
Double-entry accounting: recording of debit & credit parts of a transaction
Entry: each transaction recorded
Expense: cost of goods/services used to operate a business
Equities: financial rights to a business → 2 types → 1. those to whom money is owed → 2. equity of the owner
Equity: net worth or assets - liabilities
Financial statements: financial reports that summarize the financial condition and operations of a business
GAAP: generally accepted accounting principles
General ledger: contains all accounts needed to prepare financial statements
Invoice: form describing goods/services sold, the quantity, price, and terms of sale → recording a sale on account is a sales invoice
Journal: form for recording transactions in chronological order
Journalizing: recording transactions in a journal
Ledger: a group of accounts
Liability: an amount owed
Memorandum: brief written message describing a transaction
Net worth: equity = assets- liabilities
Net worth statements: allow people to see their financial position (ex. taking on a loan)
Normal balance: the side of the account that is increased
Posting: transforming information from a journal entry to a ledger account
Receipt: written acknowledgement of cash received
Revenue: the increase in equity due to the sale of goods
Sale on account: a sale where the payment will be received later
Source document: business paper from which information is obtained for a journal entry
T-Account: an accounting device used to analyze transactions
Transaction: any business activity that changes assets, liabilities, or owner’s equity
Withdrawal: assets taken from the business for personal use by the owner
Business Law & Ethics → rules, regulations, and statutes governing the formation, operation, and dissolution of a business
C Corporation: business structure in which the owners or shareholders are taxed separately from the entity
Close corporation: a corporation whose shareholders are limited to a small group of persons, often family members
General partnership: a partnership in which partners share equally in both responsibility and liability
Limited Liability Company: a corporate structure that protects the owners from being personally pursued for repayment of the company’s debt or liabilities → combines the tax treatment of a partnership with the liability protection of a corporation.
Open corporation: a corporation whose stock can be bought & sold by any individual
S Corporation: business entity that enjoys the advantages of a traditional corporation while passing incomes, losses, deductions, and credits onto shareholders
Sole proprietorship: a business owned and managed by a single individual
Communication
Customer Relations
Economics
Economies of scale: as production increases, the cost per unit decreases
Cyclical stocks: sensitive to the economic cycle, do well when the economy does well
Defensive stocks: Provide essential goods and services, are not sensitive to the economic cycle
Emotional Intelligence
Entrepreneurship & Innovation
Venture capital: the funding of small companies by profit-seeking investors
Finance → managing, using, raising money
Compound interest: the interest paid at the original amount deposited on the original amount deposited in the bank, plus any interest that has been paid
Interest: the money paid back regularly at a certain rate for either delaying payment or the use of money lent
Human Resources
Remuneration: money paid for labor
Management
Channel Management
Information Management
Quality Management
Marketing
Marketing-Information Management
Marketing Management
Pricing
Promotion
Emotional Selling Proposition: ESP
Unique Selling Proposition: USP
Sales
Selling
Operations
Professional Development
Risk Development
Risk management: refers to the detailed procedures and policies for avoiding or reducing risks
Risk oversight: how a company’s owners govern the processes for identifying, prioritizing, and managing critical risks, and ensuring that these processes are continually reviewed
Strategy
Strategic Management
Business plan: a formal document that outlines the strategies for long-term growth and identifies alternative ideas and markets
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