Accounting Flashcards
(58 cards)
Bank Loan
A bank loan is when a person is provided money that they must repay. A bank loan is a debt that a person, known as the borrower, owes to a bank. It is an agreement between the borrower and the bank that the loan will be paid back in a specific amount time at a specific interest rate.
when a person is provided money that they must repay. A debt that a person, known as the borrower, owes to a bank. It is an agreement between the borrower and the bank that the borrowed money will be paid back in a specific amount time at a specific interest rate.
Bank loan
Credit
The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
Credit
Foreclosure
A legal process in which a lender attempts to recover the balance of a loan from a borrower, who has stopped making payments to the lender, by forcing the sale of the asset used as the collateral for the loan.
A legal process in which a lender attempts to recover the balance of a loan from a borrower, who has stopped making payments to the lender, by forcing the sale of the asset used as the collateral for the loan.
Foreclosure
Free market
A market economy based on supply and demand with little or no government intervention.
A market economy based on supply and demand with little or no government intervention.
Free market
Inflation
Broad increases in prices of goods and services.
Broad increases in prices of goods and services.
Inflation
Great Depression
The financial and industrial slump of 1929 and the subsequent years. The economic recession began on October 29, 1929, following the U.S. stock market crash.
The financial and industrial slump of 1929 and the subsequent years. The economic. Recession began on October 29, 1929, following the U.S. stock market crash.
Great Depression
Investment Bank
A bank that purchases large shares and resells them to investors.
A bank that purchases large shares and resells them to investors.
Investment Bank
Net Assets
Total assets minus the total liabilities. The amount of net assets is reported as owner’s equity in a sole proprietorship and in a corporation, it is reported as stockholder’s equity. Can also be called proprietorship.
e.g. net assets/proprietorship = assets - liabilities
Total assets minus the total liabilities. The amount is reported as owner’s equity in a sole proprietorship and in a corporation, it is reported as stockholder’s equity. Can also be called proprietorship.
Net Assets
e.g. net assets/proprietorship = assets - liabilities
Owner’s Equity
Represents the owner’s investment in the business minus the owner’s draws or withdrawals from the business plus the net income (or minus the net loss) since the business began.
e.g. owner's equity = assets - liabilities
Represents the owner’s investment in the business minus the owner’s draws or withdrawals from the business plus the net income (or minus the net loss) since the business began.
Owner’s Equity
e.g. owner's equity = assets - liabilities
Proprietorship
What the business owes to the owner and can also be called net assets.
e.g. assets = liabilities + proprietorship
What the business owes to the owner and can also be called net assets.
Proprietorship
e.g. assets = liabilities + proprietorship
Revenue
the amount of money that a company receives during a specific period, including discounts and deductions for returned merchandise. It is the “top line” or “gross income” figure from which costs are subtracted to determine net income.
the amount of money that a company receives during a specific period, including discounts and deductions for returned merchandise. It is the “top line” or “gross income” figure from which costs are subtracted to determine net income.
Revenue
Cash transactions
Are ones that are settled immediately in cash. Cash transactions also include transactions made through cheques.
These are transactions that are settled immediately in cash and can also include transactions made through cheques.
Cash transactions
