Things you owe are

The accounting equation is

a statement of a firm’s financial position - what it owns and the claims against its assets - at a particular point in time.

1. ________ a record of the company’s expenses over a period of time.

2. Cash and other liquid assets that can/ will be converted to cash or used within one year are ________

Assets expected to last for more than one year are called ________ or ________.

Claims of creditors to be repaid within one year are

Debts paid off one year or longer after the date on the balance sheet is

If you sell a security for less than you bought it, you have a

Profit / sales = _________

Profit / # of shares=

Profit / owner's equity=

_______ are the “risk-free” asset.

Short term sources of funds are repaid within one year; examples are:

Long-term sources of funds are repaid over many years and consist of: _____, _____

Making money by using money borrowed from other people is called ____.

Things you invest in are called _______ or _______

_______ is the percentage of your assets in each asset class.

U.S Treasury bills and Certificates of Deposit are examples of what asset class?

Types of Bonds are:

When interest rates increase; bond prices _______

Bonds that are tax-free and pay for cities, roads, and buildings are _______

Bonds issued by businesses are called ________

Bonds issued by governments with a promise to pay but no revenue stream are called ______

Three major categories of securities (asset classes) are:

Types of equities:

_____ shares the ownership in a company and allows the owners to vote on major company decisions. Also has optional dividends.

_________ is the largest stock exchange.

_____ is the stock market for many technology companies.

instructs a brokerage firm to obtain the highest price possible at that moment – if the investor is selling – or the lowest price possible at that moment – if the investor is buying.

instructs the brokerage firm not to pay more than a specified price for stock if the investor is buying, or accept less than a specified price if the investor is selling.

____ is when the financial institution pools investment money to acquire diversified portfolios of securities consistent with the fund’s investment objective.

funds charge a fee to buy and sell a stock.

____ funds have no fee

What type of accountant prepares financial statements for use outside a business?

Which financial statement tells us how much profit a business made?

What do we call the cost of producing the products a firm sells?

What other expenses does a business have that need to be subtracted out?

What other expenses needs to be subtracted out?

Assets - Liabilities =

What do we call the asset category that includes cash and inventory?

What ratio tells us how much profit a business makes on the things it sells?

Which asset class has the characteristic that investments in it do not go down in nominal value?

 If the current interest rate for new bonds rises, what happens to the price of older, existing bonds?

% equities = 100 - ?