Test #6 Study set

Demand Deposit

A checking account is also commonly referred to as a:

Statement of Cash Flows

A(n) ________ is a summary of the money flowing into and out of a firm.

Summarizing

Accounting involves the ______ of the financial activities for firms.

Float

Benefits the check writer by allowing it to retain the funds until the funds are actually withdrawn from its account.

Term

Business loans available from commercial banks with terms generally 5 to 12 years and secured or unsecured are called:

Ratio Analysis

Calculating & interpreting financial ratios taken from the firm's financial statements in order to assess its condition.

Marketable

Financial managers often shift temporary funds from checking accounts to _______ securities to earn higher interest returns.

Pension Funds

Large pools of money set aside by corps, unions, & government for later use in paying retirement benefits to their employees.

Accounting

Management is the art & science used to determine the most effective ways to acquire & use funds to achieve the firm's ______

Banking Act of 1933

The Federal Deposit insurance Corporation (FDIC) insures deposits in commercial banks. The FDIC was created by the:

Intangible Assets

Trademarks, franchises, patents. and copyrights are carried on the company's books as:

Financial Accounting; Managerial accounting

______ deals with reporting to outsiders. ______ accounting deals with the internal operations of the firm.

Scarce, divisible, portable, and durable

Items that groups of people use as money must be _____ to be acceptable mediums of exchange.

Trade credit, bank loans, and commercial paper

The three main types of unsecured short-term loans are:

Income Statement

A(n) _________ is a summary of what a company has earned and spent over a given period.

Credit Terms

Are specific repayment conditions as to how long customers have to pay bills and the amount of cash discount allowed.

Reserve Equipment

Federal Reserve banks must hold a certain portion of their deposits in reserve. This percentage is called the:

Depository and nondepository

Financial institutions can be divided into two broad categories. These are _________ institutions.

Double Entry Bookkeeping

In accounting, every transaction must be recorded as two entries. This system is called:

A middle manager of the company

Managerial accounting provides information that would probably be most beneficial to:

Time

Money market deposit accounts and certificates of deposit are officially called _______ deposits.

Capital Budgeting

Process of selecting the capital expenditures that offer the best returns & meet the goal of max the firm's value.

New York Stock Exchange

The oldest and largest organized securities exchange in the US is the:

Term loans, mortgage loans, and bonds

Three important forms of long-term (capital) expenditures are:

Generally Accepted Accounting Principles

To ensure accuracy and consistency in the way financial information is reported, accountants follow rules known as: