1.
2.
3.
4.
Things you own are _________________
Things you owe are _________________
The accounting equation is __________ + __________ = ____________
Practice of measuring, interpreting, and communicating financial information to support
internal and external business decision making is ____________________.
5. Provides accounting services to individuals or business firms for a fee
____________________.
6. Accountant employed by a business other than a public accounting firm
____________________.
7. _______________________ is statement of a firm’s financial position - what it owns and
the claims against its assets - at a particular point in time.
8. ______________________ is a record of the company’s expenses over a period of
time.
9. Cash and other liquid assets that can/ will be converted to cash or used within one year
are ____________________________.
10. Assets that are expected to last for more than one year are called
______________________.
11. Claims of creditors that are to be repaid within one year are _________________
________________.
12. Debts that are paid off one year or longer after the date on the balance sheet is
__________ - _____________ ________________.
13. When people owe you money, it is called an ____________ ______________ and
shows up on the balance sheet as a ______-term ___________.
14. When your business owes others money, it is called an ________________
______________ and shows up on the balance sheet as a ____________-term
_____________.
15. If you sell a security for less than you bought it, you have a _________ __________.
16. On an income statement, ___________ _____________________ isn’t all cash due to
the depreciation charges.
17. Statement that presents information on a firm’s sources and uses of cash is the
_______________________________________________________.
18. _________________ ______ __________________ tells how much money the
company earned on assets.
19. ___________________ is the ability to turn assets into money.
20.
A. Gross income / sales= ______________ _____________ ______________
B. Profit / sales = __________ ______________ ______________________
C. Profit / # of shares= __________________ ________ ___________________
D. Profit / assets= ______________________ ________ ____________________
E. Profit / owners equity= ________________ ________ ____________________
21. ____________________ reflects the firm’s view of future sales revenues, operating
expenses, and cash receipts and outlays.
22. Many financial managers invest the majority of their firms’ excess cash balances in
marketable securities such as:
1. _______________________________________
2. _______________________________________
3. ______________________________________
4. _______________________________________
23. ___________________________________ is the “risk free” asset.
24. ______________________________________________ loans banks money for the
banks to loan out for higher interest rates.
25. __________________________ _________________________ is when a company
sells an asset with the intention to purchase it back with interest after a specified time
period. The company will still get the asset back if the company goes out of business.
26. ___________________-__________________ sources of funds are repaid within one
year; examples are:
a. _________________ ________________
b. _________________ ________________
c. _________________ ________________
27. _______________________ ___________________ sources of funds are repaid over
many years and consist of:
a. _________________ ________________
b. _________________
c. _________________ ________________
28. __________________ are certificates of indebtedness sold to raise long-term funds for
a corporation or government agency. (fixed income; no ownership)
29. __________________ ____________________ is acquired by selling stock in the
company or reinvesting company earnings. (stock; ownership of business)
30. Making money by using money borrowed from other people is called
_______________.
31. Things you invest in are called _____________________. Examples are:
a. _________________________
b. _________________________
c. _________________________
32. _________________ _________________ is the percentage of your assets in each
asset class.
State if the risk and return is high, moderate, or low:
ASSET CLASSES
RISK
CASH
33.
BONDS
35.
STOCKS
37.
RETURN
34.
36.
38.
39. U.S treasury, Commercial Papers, Repurchase agreements, and Certificates of Deposit
are examples of what asset class?________________________
40. Interest rates for bonds are based upon expected ______________ and default risk.
41. Types of Bonds are:
A. ___________________________________
B. ___________________________________
C. ___________________________________
42. When interest rates increase; bond prices __________________.
43. Bonds that are tax free and pay for cities, roads, and buildings are
_______________________.
44. Bonds issued by businesses are called ___________________________________.
45. Bonds issued by governments with a promise to pay but no revenue stream are called
__________________________________.
46. _____________________________________ shows interest rates over time and is the
market’s prediction of future inflation.
47. Three major categories of securities (asset classes) are:
A. _________________
B. _________________
C. _________________
48. Types of equities:
A. _________________ _________________
B. _________________ _________________
C. _________________ _________________
49. _______________________ stock shares the ownership in a company and allows the
owners to vote on major company decisions. Also has optional dividends.
50. ________________________ stock allows their holders to receive preference in the
payment of dividends, but have no voting rights.
51. _____________________________________________ gives the holder the right to
exchange their securities for a fixed number of shares of common stock (money).
52. _________ is the largest stock exchange.
53. ____________ is the stock market for many technology companies.
54. A ________________ _______________ is the centralized marketplace where
primarily common stock is traded.
55. __________________ ___________________ is the trading on information that you
know only because you or someone you know works at a business.
56. _______________________ __________________ is the financial intermediary that
buys and sells securities for individual and institutional investors.
57. __________________ _________________instructs a brokerage firm to obtain the
highest price possible at that moment – if the investor is selling – or the lowest price
possible at that moment – if the investor is buying.
58. __________________ _________________ instructs the brokerage firm not to pay
more than a specified price for stock if the investor is buying, or accept less than a
specified price if the investor is selling.
59. _______________ _________________ _______________ is an indicator of the
expected growth of a company.
60. _______________________ _________________ is when the financial institution pools
investment money to acquire diversified portfolios of securities consistent with the fund’s
investment objective.
61. _____________ funds have a charged fee to buy and sell a stock
62. ________________ funds have no fee.