Intro to Business Chapter 17-20
Accounting cycle - ANS-A six-step procedure that results in the preparation and analysis of
the major financial statements.
1. Analyze
2. record trans in journals
3. Transfer journal entries into ledger
4. Take a trial balance
5. prepare financial statements
6. analyze financial statements
\Accounts Payable - ANS-Current liabilities a firm owes for merchandise or services
purchased on credit.
\Assets - ANS-Economic resources owned by a firm. Items can be tangible or intangible.
\Auditing - ANS-Reviewing and evaluating the information used to prepare a company's
financial statements.
\Balance sheet - ANS-The financial statement that reports a firm's financial condition at a
specific time.
\Barter - ANS-The direct trading of goods or services for other goods or services.
\Bears - ANS-Investors who expect stock prices to decline.
\Bond - ANS-A corporate certificate indicating that an investor has lent money to a firm (or a
government).
\Bonds Payable - ANS-Long-term liabilities that the firm must pay back
\Bookkeeping - ANS-The recording of business transactions. Bookkeepers divide a firm's
transactions into meaningful categories and post them into a record book or computer
program called a journal.
\Budget - ANS-Sets forth management's expectations for revenues and allocates the use of
specific resources throughout the firm.
\Bulls - ANS-Investors who believe stock prices are going to rise.
\Capital Budget - ANS-Highlights a firm's spending plans for major asset purchases that
often require large sums of money.
\Cash Budget - ANS-Estimates cash inflows and outflows during a particular period like a
month or quarter.
\Cash-flow forecast - ANS-Predicts the cash inflows and outflows in future periods, usually
months or quarters.
\Certificate of deposit - ANS-A savings account that earns interest, to be delivered on the
certificate's maturity date.
\Certified Internal auditors - ANS-Accountants who have a bachelor's degree and two years
of experience in internal auditing and pass an exam administered by the Institute of Internal
Auditors
\Certified public accountant - ANS-Accountants who have passed series of examinations
established by the AICPA.
\Commercial bank - ANS-A profit-seeking organization that receives deposits from
individuals and corporations in the form of checking and savings accounts and uses those
funds to make loans
Accounting cycle - ANS-A six-step procedure that results in the preparation and analysis of
the major financial statements.
1. Analyze
2. record trans in journals
3. Transfer journal entries into ledger
4. Take a trial balance
5. prepare financial statements
6. analyze financial statements
\Accounts Payable - ANS-Current liabilities a firm owes for merchandise or services
purchased on credit.
\Assets - ANS-Economic resources owned by a firm. Items can be tangible or intangible.
\Auditing - ANS-Reviewing and evaluating the information used to prepare a company's
financial statements.
\Balance sheet - ANS-The financial statement that reports a firm's financial condition at a
specific time.
\Barter - ANS-The direct trading of goods or services for other goods or services.
\Bears - ANS-Investors who expect stock prices to decline.
\Bond - ANS-A corporate certificate indicating that an investor has lent money to a firm (or a
government).
\Bonds Payable - ANS-Long-term liabilities that the firm must pay back
\Bookkeeping - ANS-The recording of business transactions. Bookkeepers divide a firm's
transactions into meaningful categories and post them into a record book or computer
program called a journal.
\Budget - ANS-Sets forth management's expectations for revenues and allocates the use of
specific resources throughout the firm.
\Bulls - ANS-Investors who believe stock prices are going to rise.
\Capital Budget - ANS-Highlights a firm's spending plans for major asset purchases that
often require large sums of money.
\Cash Budget - ANS-Estimates cash inflows and outflows during a particular period like a
month or quarter.
\Cash-flow forecast - ANS-Predicts the cash inflows and outflows in future periods, usually
months or quarters.
\Certificate of deposit - ANS-A savings account that earns interest, to be delivered on the
certificate's maturity date.
\Certified Internal auditors - ANS-Accountants who have a bachelor's degree and two years
of experience in internal auditing and pass an exam administered by the Institute of Internal
Auditors
\Certified public accountant - ANS-Accountants who have passed series of examinations
established by the AICPA.
\Commercial bank - ANS-A profit-seeking organization that receives deposits from
individuals and corporations in the form of checking and savings accounts and uses those
funds to make loans
