accounting (p. 456)

The recording, classifying, summarizing, and interpreting of financial events and transactions to provide management and other interested parties the information they need to make good decisions.

accounting cycle (p. 461)

A six-step procedure that results in the preparation and analysis of the major financial statements.

( Read more... )

budget (p. 488)

A financial plan that sets forth management's expectations, and, on the basis of those expectations, allocates the use of specific resources throughout the firm.

capital budget (p. 488)

A budget that highlights a firm's spending plans for major asset purchases that often require large sums of money.

capital expenditures (p. ( Read more... )

bond (p. 513)

A corporate certificate indicating that a person has lent money to a firm.

buying stock on margin (p. 530)

Purchasing stocks by borrowing some of the purchase cost from the brokerage firm.

capital gains (p. 526)

The positive difference between the purchase price of a stock and its sale price.

commodity exchange (p. 531)

A ( Read more... )

banker's acceptance (p. 563)

A promise that the bank will pay some specified amount at a particular time

barter (p. 546)

The trading of goods and services for other goods and services directly.

certificate of deposit (CD) (p. 555)

A time-deposit (savings) account that earns interest to be delivered at the end of the certificate's maturity ( Read more... )

1.            Financial information is critical to the growth and development of an organization. Accounting provides the information necessary to measure a firm's financial condition.

1. Describe the importance of financial information and accounting.

•           What is accounting?

Accounting is the recording, classifying, summarizing, and ( Read more... )

1.            Finance is that function in a business responsible for acquiring funds for the firm, managing funds within the firm (e.g., preparing budgets and doing cash flow analysis), and planning for the expenditure of funds on various assets.

1. Describe the importance of finance and financial management to an organization, and explain the ( Read more... )

1.            Securities markets provide opportunities for businesses and investors.

1. Identify and explain the functions of securities markets, and discuss the role of investment bankers.

•           What opportunities are provided to businesses and individual investors by securities markets?

Businesses are able to raise much-needed funding ( Read more... )

1.            Money is anything that people generally accept as payment for goods and services.

1. Explain what money is and how its value is determined.

•           How is the value of money determined?

The value of money depends on the money supply; that is, how much money is available to buy goods and services. Too much money in ( Read more... )

Big Men Alternate term for headmen common in Melanesian societies. See headmen.

bilateral descent Descent that is traced equally through both mother and father.

bilocal residence The condition in which a newly married couple reside either with or near the groom’s parents or the bride’s parents.

biological anthropology A subfield of anthro- pology ( Read more... )

( Read more... )