| A | B |
|---|
| Liquidity | The ease with which an investment can be changed into cash without losing its value |
| Profit | Revenue > Expenses |
| Loss | Revenue < Expenses |
| Business Budget | Income, Expenses for a business |
| Asset Records | Name the buildings and equipment owned by the business, their original and current value and the amount owed if money was borrowed to purchase them |
| Depreciation Records | Identify the amount assets have decreased in value due to their age and use |
| Inventory Records | Identify the type and number of products on hand for sale |
| Records of Accounts | Identify All purchases and sales made using credit |
| Accounts Payable Record | Identifies the companies from which credit purchases were made and the amount purchased, paid and owed |
| Accounts Receivable Record | Identifies customers that made purchases using credit and the status of each amount |
| Cash Records | All Cash Received and Spent |
| Payroll Records | Contain Information on all employees of the company, their compensation, and benefits |
| Tax Records | Show all taxes collected, owed, and paid |
| Financial Statements | Reports that sum up the financial performance of a business |
| Balance Sheet | A company reports its assets, liabilities, owner's equity and net profit on this |
| Sales | What you sold |
| Current Assets | Includes cash and those items that can be readily converted to cash |
| Long Term Assets | Assets with a lifespan of more than a year |
| Fixed Assets | Assets with a lifespan of more than a year |
| Current Liabilities | Paid within a year |
| Long Term Liabilities | Will be paid after a year |
| Owner's Equity | Assets - Liabilities |
| Revenue | All income received |
| Net Income | Revenue > Expenses |
| Net Loss | Revenue < Expenses |
| Current Ratio | Current Assets compared to Current Liabilities |
| Debt to Equity Ratio | Liabilities divided by Owner's Equity |
| Return on Equity Ratio | Net Profit compared to Amount of Owner's Equity |
| Net Income Ratio | Total Sales compared to Net Imcome |
| Bank for Banks | The Federal Reserve |
| Member Banks | Members of Federal Reserve |
| Reserves | Holding Money back |
| Clearing | Paying of checks among different banks and cities |
| Deposit Institutions | Accept deposits from people and businesses |
| Depository Intermediaries | Accept deposits from people and businesses |
| Full Service Banks | Another name for Commercial Bank |
| Savings Banks | S&L Institutions |
| Mutual Savings Bank | Owned by and operated for the benefit of its depositors |
| Non-Deposit Institutions | Earn money by selling specific services or policies - They take NO DEPOSITS |
| Non-Depository Intermediaries | Earn money by selling specific services or policies - They take NO DEPOSITS |
| Trust | Manage investments on behalf of customers |
| Share Draft | Checking Account at Credit Union |
| Shareholders | Member of Credit Union |
| Special Checking Account | Only a few checks written a month |
| Activity Account | Only a few checks written a month |
| Cash Machine | ATM |
| Cash Card | Used at ATM |
| Credit Card | Using borrowed money |
| Point-of-Sale Transaction | Merchant accepts a debit card to pay for purchases |
| Direct Deposit | Funds deposited directly into your account |
| Automatic Bill Paying | Requires a bank customer to authorize preset amounts of monthly expenses |
| Check Cards | Purchase deducted from Checking Account |
| Personal Identification Number | ATM Access Code |
| PIN | ATM Access Code |
| E-Money | Money for Online Transactions |
| Signature Card | Used to verify your signature |
| Joint Account | 2 or more people open an account |
| Deposit Slip | Fill out to Deposit money |
| Blank Endorsement | Only Endorser's Name |
| Full Endorsement | Allows you to transfer a check to another person |
| Special Endorsement | Allows you to transfer a check to another person |
| Restrictive Endorsement | Limits use of check for only the Purpose of check |
| Drawer | Signs the check |
| Payee | Whom the check is written to |
| Drawee | the Bank or other Financial Institution that pays the check |
| Check Stub | Attached to the check by a perforated line |
| Duplicate Copy | Copy of written check |
| Canceled Check | Check that hasn't been paid |
| Substitute Check | Digital reporduction of the original check |
| Reconciling the Bank Statement | Bringing the balances into agreement |
| Cleared | Been Paid |
| Income Statement | Reports the Revenue, Expenses, and Net Income or Loss from business operations for a specific period |
| Budget | Provide detailed plans for the financial needs of individuals, families, and businesses |
| Direct Deposit | The employer electronically transfers net pay into the employee's bank account |
| Start-up Cost | Plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable. |
| Financial Records | Used to record and analyze the financil performance of a business |
| Revenue | All income that a business receives over a period of time |
| Balance Sheet | Lists the business' assets, liabilities, and owners' equity for a specific date |
| Discrepancies | Differences between the actual and budgeted performance. |
| Operating Budget | Describes the financial plan for ongoing operations of the business for a specific period |
| Assets | What a company owns |
| Expenses | The costs of operating a business |
| Cash Budget | An estimate of the actual money received and paid out for a specific period |
| Payroll Record | A form used to document each employee's pay history |
| Financial Performance Ratios | Comparisons of a company's financial elements that indicate how well the business is performing |
| Payroll | The financial records of employee compensation, deductions, and net pay |
| Owner's Equity | The value of the owner's investment in the business |
| Liabilities | What a company owes |
| Commercial Bank | A bank that offers a full range of financial services |
| Federal Reserve System | A nationwide banking plan set up by the federal government to supervise and regulate member banks |
| FED | A nationwide banking plan set up by the federal government to supervise and regulate member banks |
| The FED | A nationwide banking plan set up by the federal government to supervise and regulate member banks |
| Stop Payment Order | A written notice telling the bank not to pay a certain check |
| Check Register | A separate form on which the depositor keeps a record of deposits and checks |
| Debit Card | A device used for cash machine transactions |
| Safe-Deposit Box | A secured area in a bank vault for storing valuables |
| Endorsement | Written evidence that you received payment of that you transferred your right of receiving payment to someone else |
| Bank Statement | A report sent by the bank to a depositor showing the status of his or her account |
| Federal Deposit Insurance Corporation | A federal agency that protects deposited money in case of the failure of a bank or financial institution that it regulates |
| FDIC | A federal agency that protects deposited money in case of the failure of a bank or financial institution that it regulates |
| Service Charge | A fee a bank charges for handling a checking account |
| Outstanding Checks | Checks that have not been deducted from the bank statement balance |
| Credit Union | A not-for-profit financial institution formed by people who have like occupations or live in the same community |
| Bank Reconcilliation | A statement showing how the checkbook balance and the bank statement were brought into agreement |
| Assessed Value | The amount that your local government determines your property to be worth for tax purposes |
| Stockbroker | Licensed specialist in the buying and selling of stocks and bonds |
| Real Estate | Land and anything that is attached to it |
| Common Stock | Represents general ownership in a corporation and a right to share in its profits |
| Mutual Fund | Investments set up and managed by companies that receive money from many investors |
| Mortgage | A legal document giving the lender a claim against real estate property |
| Collectibles | Items of personal interest to collectors that can increase in value in the future |
| Investing | Using your savings to earn more money |
| Yield | The percentage of money earned on your savings or investment over a year, also called the rate of return |
| Municipal Bond | Bonds issued by local and state governments |
| Saving | Storage of money for future use |
| Equity | The difference between the price at which you could currently sell your house and the amount owed on the mortgage |
| Stock Exchange | Business organizations that accommodate the buying and selling of securities |
| Corporate Bond | Bonds issued by corporations |
| Futures Contract | Agreements to buy or sell an amount of a commodity at a specified price in the future |
| Market Value | The price at which a share of stock can be bought and sold in the stock market. |
| Commodities | Grain, Livestock, and precious metals |
| Preferred Stock | Stock that has first priority in the payment of dividends |
| Certified Check | Personal Check for which a bank has guaranteed payment |
| Cashier's Check | check that a bank draws on its own funds |
| Traveler's Check | Special checks designed to make payments away from home |
| Bank Money Order | Sold by the bank, stating the money is to be paid to a specific person or business |
| Postal Money Order | Purchased from the U.S. Post Office |
| Express Money Order | Issued by various organizations |
| Telegraphic Money Order | buying a message to direct a telegraph office to pay a sum of money to a certain person or business |
| Current Income | Income for Current Living Expenses |
| Long-Term Growth | Financial Security in the Future |
| Interest | Money you earn from letting others use your money |
| Compound Interest | Computed on the Amount Saved plus the interest previously earned |
| Certificate of Deposit | Allows you to earn a higher interest rate than a regular savings account |
| Money Market Account | Pays a variable interest rate based on various government and corporate securities |
| Capital Gains | Stock Increases in value and is sold |
| Capital Loss | A Stock decreases in value and is sold |
| Bonds | Represent Debt |
| Yield | Also known as Annual Yield or Rate of Return |
| Annual Percentage Yield | Percentage rate equal to the total amount of interest that a deposit would earn in a year |
| Liquid | Investments that can be turned into cash |
| Tax-Exempt Earnings | Don't pay taxes on them |
| Stockholder | Owns stock |
| Stock Certificate | Printed form of ownership |
| Dividends | Part of the Businesses profits |
| Full-Service Broker | Provide info about securities |
| Commission | Brokers fee |
| Discount Broker | just places orders and offers limited research |
| Over-the-Counter | Network where transactions occur using phones and computers |
| Stock Index | Measurement of Investment Values |
| Price-Earnings Ratio | relationship between a stock's selling price and its earnings per share |
| Maturity Date | Due Date for a bond |
| Creditor | When you buy a bond |
| I Bond | Lower than other savings bonds |
| T-Bills | Short term borrowing with maturities 91 days to a year |
| T-Notes | Maturities 1 - 10 years |
| T-Bonds | Long-term borrowing, 10-30 years maturity |
| Face Value | Amount on the Bond |
| Maturity Value | Value at Maturity Date |
| Stated Interest Rate | Price investors are willing to pay based on this |
| Fixed-Mortgage Rate | Interest Rate is Set |
| Adjustable-Rate Mortgage | Interest Rate changes |
| Appraiser | estimates value of property |
| Condominiums | Individually owned housing unit |
| Appreciation | general increase in value |
| Upkeep | maintining your property |
| Speculative Investment | High Risk |
| Spot Prices | Precious metals are quoted as |
