Accountant - An individual who has had specialized training in accounting procedures, Accounting - The process of keeping financial records, Accounting Cycle - A process or series of steps that businesses complete to maintain their financial records effectively, Accounting Standards - Rules that accountants must follow when preparing financial statements, Financial Statement - A summary of accounting information, Balance Sheet - A financial statement that captures the financial condition of the business at that particular moment (Assets = Liabilities - Owner's Equity), Assets - Anything of value that a business owns, Are Debs that the business owes - Liabilities, owner's equity - the amount the owner has invested in the business, plus or minus profits and losses., Cash Flow Statement - A financial summary with estimates as to when, where, and how much money will flow into and out of a business, Income Statement - A financial summary that shows how much money the business has made or has lost; also called the profit-and-loss statement (Net Worth = Income - Expenses), Money received by a business or an individual from outside sources - Income, Expenses - The monies that a business spends; also called expenditures, The total Value of the business - New Worth, Finance - In business, the function that involves all money and money management matters., Finance activity involving making decisions about financing - Acquisition of funds , Finance activity involving making decisions about a firm's investments - Administration of assets, Decisions that determine which projects a business will invest in, how the investment(s) will be financed, and whether to pay dividends to shareholders - Capital investment decisions, A sum of money paid to an investor or stockholder as earnings on an investment - Dividends, The day-to-day activities for continued business functioning - Operations,

Unit 4 Part 1

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