Finance 2024 Flashcards
Cost Accounting
a systematic process for recording and reporting the costs of manufacturing goods and services.
Marginal Product
as the additional product that is produced as a result of adding an additional unit of input.
Soft Skills
personal attributes that help people interact with others and are considered important for work readiness
Quality Management Plan
a formal document that outlines how a project team will ensure quality throughout a project’s lifecycle.
Standing Order purchasing method
a system where a company establishes a pre-arranged agreement with a supplier to automatically purchase specific goods or services at set intervals and quantities over a defined period
Competitive bid purchasing method
a procurement process where a buyer solicits bids from multiple vendors for a good or service, allowing them to compare prices and terms before selecting the best offer
Credit Union
a nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates.
Mutual Savings banks
a financial institution that is owned by its depositors and that operates without capital stock
Capital stock
Capital stock, also known as authorized stock, is the total number of shares a company is legally permitted to issue and has issued to its shareholders
Industrial Purchasing
the process of buying goods and services for use in a manufacturing or production process, typically involving a centralized approach with a dedicated procurement team
Stewardship
the job of supervising or taking care of something, such as an organization or property
Professional Association
a group of people who work in the same or similar fields and share an interest in advancing their profession
Accounting equation
Assets = Liabilities + Equity
Yield Percent
dividing the expected income (the dividend) by price of share
Business cycle risks
the risk that economic cycles negatively impact an investment’s returns, an asset class’s returns, or a company’s profit
Fiduciary
someone who acts on behalf of another person or organization. In most cases,
fiduciaries are responsible for managing their clients’ financial assets and making decisions in the best interest
of their clients.
Customs duty
a tax levied on goods that cross international borders
Horizontal Analysis
compare the information from a single company’s income statements
over multiple years.
Vertical Analysis
are used in comparing companies within the same industry, even companies of vastly
different sizes. This is because a vertical analysis of an income statement results in the calculation of multiple
ratios, which are more easily compared across multiple companies of different sizes than are dollars.
Liquidity Analysis
performed with
information from a company’s balance sheet to determine if a company is able to meet its short-term debts.
Accounts recievable
—all the monies owed to a firm by its customers
Employer–Employee relationship
refers to the amount of control that a
principal (e.g., employer or client) has over an agent (e.g., employee or attorney).
Debit/Equity Ratio
shows the
relationship between total liabilities and shareholders’ equity. It indicates how much debt a company is using to
finance its assets.
Asset Turnover
measures
sales revenue in relation to the value of assets. It indicates efficiency of performance
