Ballast - Chp02_Financial And Risk Mangement Flashcards
GENERAL LEDGER ACCOUNTING
Keeping track of money flowing into and out of the business is needed for day-to-day operations, banking, taxes, and auditing. This provides firm-wide statements about the overall financial status of the business so that firm owners can make decisions crucial to the firms profitability and survival.
PROJECT COST ACCOUNTING
Tracks revenue, expenses, and profit by individual projects.
CASH ACCOUNTING
Revenue and expenses are recognized at the time the business receives the cash or pays a bill.
ACCRUAL ACCOUNTING
Revenue and expenses are recognized at the time they are earned or incurred, whether or not cash changes hands
MODIFIED ACCRUAL BASIS METHOD
This method records fee revenue, expenses billed to the client, and invoices to the firm by outside consultants
BALANCE SHEET
Summarizes all assets and liabilities and shows the financial position of a business
NET WORTH
Of a firm is the total assets less the total liabilities
OWNERS EQUITY
Is the money invested in a business by the owners or stockholders
PROFIT AND LOSS STATEMENT (INCOME STATEMENT)
Lists all the income and expenses of a business for a certain period of time
CASH FLOW STATEMENT
Shows actual inflows and outflows of cash or cash equivalents
CASH EQUIVALENTS
Are short-term investments that can be quickly converted into cash, such as short term certificates of deposit
PROPERTY INSURANCE
Protects the architects building and the buildings contents against disasters such as fire, theft, and flood
PERSONAL INJURY PROTECTION
This insurance protects architects against charges of slander, libel, defamation of character, misrepresentation, and other torts. ( A TORT is a civil wrong, which causes injury to another person.)
WORKERS COMPENSATION (WORKERS COMP)
This insurance is mandatory in all states and protects employees in the event of injuries caused by work-related activities.
