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Cvpm Prep > Financial Knowing > Flashcards

Financial Knowing Flashcards

1
Q

Owners claim on the practices assets

A

Equity

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2
Q

A fund or cash reserve that is maintained at a constant level for lengthy periods of time

A

Impress account

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3
Q

A gain or recurrent benefit usually measured In money

A

Income

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4
Q

Also known as the profit and loss statement a report on financial performance that covers a period of time and reports income and expenses during that period

A

Income statement

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5
Q

Expenses that have to be paid by a company independent of any business activity

A

Fixed costs

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6
Q

A cost that does not change with an increase or decrease in the amount of goods or services produced

A

Fixed expense/ cost

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7
Q

Cost that may be manipulated in amount or eliminated by not engaging In the activity that incurred expense

A

Flexible / variable expenses

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8
Q

Tax levied by a government directly on income, especially an annual tax on personal income

A

Income tax

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9
Q

Formed into legal corporations

A

Incorporated

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10
Q

The percentage rate at which the general level of prices for goods and services is rising, and subsequently purchasing power is falling

A

Inflation rate

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11
Q

Measured outflow of services and goods matched to the revenue generated for the outflow

A

Expenses

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12
Q

Ratios used to analyze how well a company uses its assets and liabilities internally

A

Efficiency ratios for accounts payable to sales

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13
Q

The most economical quantity of a product to order, factoring in both holding and operating costs

A

Economic order quantity EOQ

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14
Q

The identification, assessment, and prioritization of financial risks followed by coordination and economical application of resources to minimize, monitor, and control the probability of said risk

A

Economic risk management

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15
Q

A sum of money placed or kept in a bank account usually to gain interest

A

Deposits

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16
Q

Systemic allocation of the cost of a tangible asset over time

A

Depreciation

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17
Q

The process of allocating the cost of an asset across the time period for which it provides benefit (known as the assets depreciable or useful life)

A

Depreciation

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18
Q

A figure on the income statement that reflects the cost of products sold to consumers in the primary business activity of the practice

A

Cost of goods sold COGS

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19
Q

Theoretical price that measures relative cost of living over time or regions . It is an index that measures differences in the price of goods and services and allows for substitutions with other items as prices vary

A

Cost of living COL

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20
Q

A duty or obligation to pay money, deliver goods , or render services u see an espresso or implied agreement

A

Debt

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21
Q

Business expenses or losses that are legally permitted to be subtracted from the gross revenue from a business when computing its taxable income

A

Deductions

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22
Q

An index of prices used to measure the change in the cost of basic goods and services with a fixed base period

A

Consumer price index. CPI

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23
Q

A process by which decisions are analyzed. The benefits of a given situation or business related action are summed and then the costs associated with taking that a action are subtracted

A

Cost Benefit Analysis.

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24
Q

An estimate of salary or wage expenditures for a set period of time

A

Compensation budget

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25
Q

The art of measuring communicating and interpreting financial activity

A

Accounting

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26
Q

The amounts the practice e owes to suppliers that are payable in the future

A

Accounts payable

27
Q

Money that is owed to the practice by a client for products or services provided on credit

A

Accounts receivable AR

28
Q

A system that recognizes revenue as earned and expenses as incurred

A

Accrual accounting

29
Q

Accounting method that recognizes income when it is earned and expenses when they are incurred regardless of when cash is received or disbursed

A

Accrual basis

30
Q

Relating to income that remains after the deduction of taxes due

A

After tax

31
Q

Periodic expense attributed to the decline in usefulness of intangible assets over it’s estimated useful life

A

Amortization

32
Q

A form of settlement negotiation facilitated by a neutral third party

A

Arbitration

33
Q

Any asset that lacks physical substance and is usually very hard to valuate

A

Asset-intangible

34
Q

A trust that can be used to maintain control over the trust assets for a designated period of time which may survive death

A

Asset control

35
Q

Things of value owned by. Business enterprise such as cash, accounts, receivables and equipment

A

Assets

36
Q

Any asset that cannot be easily converted to cash

A

Assets-fixed

37
Q

A record of financial transactions from which an accountant can reconstruct the sequence of events

A

Audit trails

38
Q

Total revenue of a time period divided by the total number of transactions in that period

A

Average transaction charge ATC

39
Q

Also referred to as the statement of financial conditions the balance sheet summarizes the assets, liabilities, and owners equity at a particular date

A

Balance sheet

40
Q

Summary of financial transactions which have occurred over a given period on a bank a account

A

Bank statement

41
Q

The process by which a business compares itself to others

A

Benchmarking

42
Q

A financial projection used to estimate and control the results of future business operations

A

Budget

43
Q

One entity acquiring control of another entity

A

Capital acquisitions

44
Q

The rights (equity) of the owners business enterprise

A

Capio

45
Q

A system that recognizes income only when cash is collected form a sale and recognizes expenses when cash is actually paid for goods and services received

A

Cash accounting

46
Q

Accounting method that measures income when cash is received and expenses when cash is spent

A

Cash basis

47
Q

Financial report on the source of cash and use of cash

A

Cash flow statement

48
Q

A systematic listing of all accounts names and numbers used by a company

A

Chart of accounts

49
Q

An estimate of cAsh receipts and disbursement for a specific period of time. Used to determine whether a business had enough money to maintain standard operations. Also helps determine if cash money is being used in unproductive capacity

A

Cash budget

50
Q

An analysis that is used to determine when your business will be able to cover all its expenses and begin to make a profit

A

Break even analysis

51
Q

Measurable quantities for a given period of time that are considered industry standards

A

Benchmark

52
Q

Current=short term assets such as general inventory, cash, and accounts receivable
Fixed =long term assets such as land building and equipment
Intangible =not physical in nature such As copyrights and goodwill

A

Assets ( current,fixed, intangible)

53
Q

Property of any kind held by an assessee
Whether connected with their business or profession or not connected with their business or profession. It includes all kinds of property movable or immovable tangible fixed or circulating

A

Capital asset

54
Q

Any asset reasonably expected to be sold consumed or exhausted through the normal operations of the business within the current fiscal year

A

Asset-current

55
Q

Expenses which contain both a fixed cost component and variable cost component. The fixed cost element is part of the cost that needs to be paid irrespective of the level of activity achieved by the entity

A

Semi variable costs

56
Q

The expense of a business not directly associated with the making of a product or providing of a service such as administrative technical or selling expenses

A

Operating expenses

57
Q

The limit of the amount of money one can deduct from their salary to place in a retirement account

A

Maximum contribution

58
Q

A bookkeeping term that describes the document in which business transactions are originally recorded as they occur. The book of entry prior to the ledger

A

Journal

59
Q

Summary of the practices income expenses and resulting profit or loss for a specific period

A

Profit and loss. P&L

60
Q

The consequences of being involved in something determined by law

A

Legal implications

61
Q

Practice debts

A

Liabilities

62
Q

Enhancement paid by a tenant to leased space

A

Leasehold improvements

63
Q

Expenses that increase or decrease dollar amount in direct relation to the volume of practice activity

A

Variable costs

64
Q

A section of the practice that can be assessed in terms of its revenue and expenses

A

Profit centers

Cvpm Prep (4 decks)

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