College Classes

Financial Accounting (Principles)

Assets – Resources a company owns (cash, inventory, equipment).

Liabilities – What a company owes (loans, accounts payable).

Equity – Owner’s claim on assets after liabilities.

Revenue – Income earned from sales or services.

Expenses – Costs incurred to generate revenue.

Net Income – Revenue minus expenses.

Accrual Basis Accounting – Recording revenues/expenses when they are incurred, not when cash changes hands.

Cash Basis Accounting – Recording only when cash is received or paid.

Double-entry system – Every transaction affects at least two accounts (debits and credits).

Financial Statements – Balance Sheet, Income Statement, Statement of Cash Flows.

GAAP (Generally Accepted Accounting Principles) – Standard framework for financial reporting.

📗 Macroeconomics

GDP (Gross Domestic Product) – Total value of goods/services produced in a country.

Nominal vs. Real GDP – Current prices vs. inflation-adjusted.

Unemployment Rate – Percentage of labor force unemployed but seeking work.

Inflation – General rise in prices.

Deflation – General fall in prices.

Aggregate Demand (AD) – Total spending on goods/services in an economy.

Aggregate Supply (AS) – Total production in the economy.

Fiscal Policy – Government use of spending and taxes to influence economy.

Monetary Policy – Central bank control of money supply and interest rates.

Business Cycle – Expansion, peak, contraction, trough.

Opportunity Cost – The next best alternative forgone.

Comparative Advantage – Ability to produce at a lower opportunity cost.

📙 Probability & Statistics (Intro)

Population – Entire group of interest.

Sample – Subset of the population.

Parameter – Numerical value that describes a population.

Statistic – Numerical value that describes a sample.

Random Variable – A variable whose values are outcomes of a random event.

Probability Distribution – Lists possible outcomes with probabilities.

Mean (μ or x̄) – Average.

Median – Middle value when data is ordered.

Mode – Most frequent value.

Variance (σ²) / Standard Deviation (σ) – Measures the spread of data.

Normal Distribution – Bell-shaped curve; common in real-world data.

Law of Large Numbers – With more trials, results approximate the expected probability.

Central Limit Theorem – Sampling distribution of the mean approaches normal as sample size grows.

Hypothesis Testing – Procedure for testing assumptions about population parameters.

p-value – Probability of observing results at least as extreme as sample results, assuming the null hypothesis is true.