Key Terms

5. a useful or valuable thing, person, or quality.
6. debt that the business owes.
8. money received by a business or an individual from outside sources
11. sheet: a financial statement that reports a company's assets, liabilities, and shareholder equity
12. statement: A financial summary that shows how much money the business has made or has lost; also called the profit-and-loss statement
14. cycle: a collective process of identifying, analyzing, and recording the accounting events of a company
15. An individual who has specialized training in accounting procedures
19. of assets: the total assets for which a financial institution provides administrative services

1. equity: the portion of a company's assets that an owner can claim
2. of funds: the capital needed for one company to acquire another or purchase a significant share of its assets
3. the monies that a business spends; also called expenditures
4. investment decisions: whether to invest in new equipment or machinery, whether to expand into new markets or geographic areas, and whether to acquire or merge with another company
7. the process of keeping financial records
9. statement: reports compiled by businesses that detail the company's financial activities and health.
10. worth: the total value of a business.
13. standards: rules that accountants must follow when preparing financial statements.
16. a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits
17. flow statement: A financial summary with estimates as to when, where, and how much money will flow into and out of a business
18. Function involving money management matters