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Definition
-a characteristic of a partnership where any partner can obligate other partners to an agreement without direct consent; does not have parallel in corporate ownership.
-The right of all the partners in a partnership to act as the agents for the partnerships normal business activities, with the authority to bind the partnership it to business agreements which have been entered into |
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-a legal characteristic associated with the ownership of a corporation where the maximum amount that can be lost is the owner's capital investment
-the liability of the firm's owners for no more than the capital they have invested in the firm |
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| -a negative feature associated with the corporate form of the organization; corporate earnings are taxed first when earned and then taxed again when distributed to owners in the form of dividends. |
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-the maximum number of shares that a corporation can issue based on the articles of incorporation approved by the state goverment at the time of incorporation.
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| the number of shares of a corporation that have been sold or conveyed to owners. |
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Definition
-the number of shares of a corporation that are currently in the hands of the public; it is the shares that have been issued since operations first began less any treasury shares repurchased and still held by the corporation.
-shares that are owned by investors |
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| -a number printed on a stock certificate to indicate the minimum amount of money owners must legally leave in the business; generally set at a low amount to avoid legal complications |
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Definition
-issued shares of a corporations own stock that have been reacquired; balance is shown within stockholder's equity section of the balance sheet as a negative amount unless shares are retired.
-stock that has been bought back by the issuing corporation and is available for retirement or resale; it is issued but not outstanding; it cannot vote and pays no dividends |
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Definition
-a statement of cash flow category used to disclose cash receipts and disbursements arising from primary activities of the reporting organization
-The business activities that involve the cash effects of transactions and other events that enter into the determination of net income. |
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Definition
-a statement of cash flow category used to disclose cash receipts and disbursements arising from an asset transaction other than once relating to the primary activities of the reporting organization
-focus's on long term assets |
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Term
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Definition
| -a statement of cash flow category used to disclose cash receipts and disbursements arising from liability or stockholder's equity transaction other than one's relating to the primary activites of the organization. |
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Term
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Definition
| -the act or process of keeping financial accounts |
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| -a summary of the revenues, operating expenses, depreciation, interest and net operating income for a business or parcel of real estate. |
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Term
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Definition
| -A statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period |
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Term
| statement of retained earnings |
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Definition
-a reconciliation of a corporation's retained earnings account from the beginning of a period to the end the account is increased by net income and decreased by net loss/dividends declared.
-Reports the way that net income and the distribution of dividends affected the financial position of the company during the accounting period. |
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Term
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Definition
| -A statement which reveals where cash was provided and used by the corporation. It is divided into three general sections: cash provided/used by operations, cash provided/used by investing activities, and cash provided/used by financing activities. It also lists the depreciation and amortization charges taken by the firm against earnings. |
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Definition
-Generally Accepted Accounting Principles
-a collection of rules and procedures and conventions that define accepted accounting practice |
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| -In accounting, a current asset is an asset on the balance sheet which is expected to be sold or otherwise used up in the near future, usually within one year, or one operating cycle whichever is longer. |
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Term
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Definition
| -Amounts due to be paid to creditors within twelve months |
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Term
| convertible preferred stock |
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Definition
| -Preferred stock that can be converted into common stock at the option of the holder. |
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Term
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Definition
| -Preferred stock that the issuing corporation, at its option, may retire by paying the call price plus any dividends in arrears. |
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Term
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Definition
-Also called paid-in capital, it is the amount of value received by the corporation when it issues its stock. It includes the par value and any amount received in excess of the par value.
-Direct method of raising equity by issuing stock. The amount of money raised from stockholders. |
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Term
| additional paid in capital |
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Definition
- the total amount actually paid by investors for shares when issued
-Amounts paid for stock in excess of its par value or stated value. Also, other amounts paid by stockholders and charged to equity accounts other than capital stock.
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Term
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Definition
| -The capital of a business that is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities |
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Definition
| -The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. It compares a firm's current assets to its current liabilities. |
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Definition
-A liquidity ratio that provides a measure of a company’s ability to meet its current obligations if it cannot sell its inventory.
-In finance, the Acid-test or quick ratio or liquid ratio measures the ability of a company to use its near cash or quick assets to extinguish or retire its current liabilities immediately. Quick assets include those current assets that presumably can be quickly converted to cash at close to their book values. A company with a Quick Ratio of less than 1 can not currently pay back its current liabilities.
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Term
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Definition
| In accounting, book value or carrying value is the value of an assetaccording to its balance sheet account balance. For assets, the value is based on the original cost of the asset less any depreciation, amortization orImpairment costs made against the asset. |
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Term
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Definition
-A method of creating a statement of cash flows during a given reporting period. The method uses actual cash flow information from the company's operations segment, instead of using accrual accounting values.
Under the direct methods, the only section of the cash flow statement that will differ in presentation is the cash flow from operations section.
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Term
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Definition
-A method for creating a statement of cash flows a company may use during any given reporting period. The indirect method uses accrual accounting information to present the cash flows from the operations section of the cash flow statement.
The indirect method uses accounting information, instead of actual cash inflow and outflow data, the internal information is readily available and may be easier to implement.
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Term
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Definition
| Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited funds. |
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Term
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Definition
-The minimum interest rate set by the Federal Reserve for lending to other banks |
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