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122 Cards in this Set
- Front
- Back
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Financial Accounting Standards Board
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set the principal standards of financial accounting
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CPA
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state certified, provide accounting services e.g. prepare financial records, file tax returns, audit, etc.
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Private Accounting
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corporations, organizations hire their own accountants
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Forensic Accounting
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analyze financial documents to search for fraud, misconduct
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Sarbanes-Oxley Act
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firms be more rigorous in accounting
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Managerial Accounting
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internal use of accounting statements to plan and direct organization’s activities
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Cash Flow
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movement of money through an organization over a period of time
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Budget
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internal financial plan that forecasts expenses and income over a period of time
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Operating Expenses
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cash outflows e.g. wages, taxes, material costs, etc.
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Operating Revenues
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cash inflows e.g. payments from customers
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Annual Report
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summary of a firm's financial information, products, and growth plans for owners and potential investors
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Audited
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when a CPA attest that the required financial statements are accurate
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Assets
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a firm's economic resources, or items of value that it owns
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Liabilities
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debts
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Owner's equity
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Assets - Liabilities
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Double-entry Bookeeping
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record business transactions in two separate accounts to maintain the balance of the accounting equation
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Accounting Cycle: Examine Source Document
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gather documents which show that a transaction took place
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Accounting Cycle: Record Transactions
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record all transactions in a journal
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Accounting Cycle: Post Transactions
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post all transactions to the general ledger under the appropriate account
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Accounting Cycle: Prepare Financial Statements
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use the ledger to prepare financial statements
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Income Statement
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financial report that shows an organization's profitability over a period of time
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Revenues (Sales)
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total amount of money received
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Cost of Goods Sold
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money the firm spent to produce the products
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Gross Income (Gross Profit)
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Gross Income = Revenue - Cost of Goods Sold
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Expenses
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costs incurred in the day-to-day operations of an organization
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Three Types of Expenses
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(1) selling, general and administrative
(2) R&D (3) interest |
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Depreciation
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khấu hao
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Net Income (Operating Income)
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total profit (loss)
= revenue - all expenses |
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Balance Sheet
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a "snapshot" of an organization's financial position at a moment
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Current Assets
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assets that are either cash or expected to be turned into cash within the next 12 months
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Fixed Assets
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assets that are long term in nature (minimum life expectancy > 1 year)
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Current Liabilities
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short-term debts expected to be paid off within the next 12 months
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Long-term Liabilities
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long-term debts that will not be paid of within the next 12 months
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Accrued Expenses
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all unpaid financial obligations
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Stockholders' Equity
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owner's investment in the company
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Profitability Ratios
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measure how much operating income can be generated relative to its assets, owner's equity, and sales
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Profit Margin
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Net Income/Revenues
profit for every $1 in revenue |
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Return on Assets
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Net Income/Assets
profit for every $1 of assets |
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Return on Equity (Return on Investment)
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Net Income/Owner's Equity
profit for every $1 of owner's investment |
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Asset Utilization Ratios
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measure how well a firm uses its assets to generate each $1 of revenue
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Receivables Turnover
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Revenues/Account Receivables
how many times a firm collects its account receivables in one year |
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Inventory Turnover
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Revenues/Inventory
how many times a firm sells and replaces its inventory |
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Total Asset Turnover
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Revenues/Total Assets
revenues for every $1 of total assets |
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Liquidity Ratios
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measure the speed a company can turn its assets into cash
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Current Ratio
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Current Assets/Current Liabilities
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Quick Ratio
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(Current Assets - Inventory)/Current Liabilities
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Debt Utilization Ratios
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measure how much debt the company is using relative to other sources of capital
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Debt to Total Assets Ratio
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Total Liabilities/Total Assets
debts for $1 of total assets |
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Times Interest Earned Ratio
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Net Income/Interest
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Per Share Data
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measure the performance of a one company with another
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Marketing
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a group of activities designed to expedite transactions by "4P" (producing, pricing, placing, promoting)
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Buying (Functions of Marketing)
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marketers must understand buyers' needs and desires to determine what products to make available
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Selling (Functions of Marketing)
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marketers view selling as a persuasive activity
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Transporting (Functions of Marketing)
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move the products from sellers to buyers
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Storing (Functions of Marketing)
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warehouse goods
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Grading (Functions of Marketing)
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standardize products by dividing them into subgroups and label them so that consumers understand their nature and quality
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Financing (Functions of Marketing)
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marketers arrange credit to expedite the purchase
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Marketing Research (Functions of Marketing)
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marketers ascertain the need for new goods and services
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Risk Taking (Functions of Marketing)
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developing a new product contains risk
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Value (Marketing)
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customers' subjective assessment of benefits relative to costs in determining the worth of a product.
Customer's Value = Customer's Benefit - Customer's Cost |
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Marketing Concept
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an organization should try to satisfy customer's needs through activities that also allow it to achieve its own goals
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Product Orientation
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- during the 2nd half of the 19th century
- demand for goods was strong - focus on producing with increasing efficiency |
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Sales Orientation
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- early part of the 20th century
- supply exceeded demand - focus on personal selling and advertising |
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Market Orientation
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- 2nd half of the 20th century
- gather information about customer needs and user that information to build long-term relationships with customers - focus on communication and maintaining a relationship with customers |
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Target Market
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specific group of consumers on whose needs and wants a company focuses its marketing efforts
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Total-Market Approach
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a firm tries to appeal to everyone
e.g. salt, sugar |
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Market Segmentation Approach
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a firm divides the total market into groups of people who have relatively similar product needs
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Concentration Approach
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one marketing strategy for a single market segment
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Multisegment Approach
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aims at two or more market segments, developing a marketing strategy for each
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Niche Marketing
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narrow market segment focus on one small. well-defined group that has a unique, specific set of needs
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Bases for Segmenting Markets
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(1) demographic: age, sex, race, income, education, etc.
(2) geographic: climate, terrain, etc. (3) psychographic: personality, lifestyles, etc. (4) behavioristic: behaviors toward the product |
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Product (4P)
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- good, service or idea
- must meet consumer needs and expectations |
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Price (4P)
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a value placed on an object exchanged between a buyer and a seller
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Distribution (4P)
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make products available to customers in the quantities desired
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Promotion (4P)
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a persuasive form of communication that attempts to expedite a marketing exchange by influencing people to accept goods, services or ideas
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Marketing Research
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get information about potential customers to guide marketing decisions
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Buying Behavior
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- decision processes and actions of people who purchase products
- psychological: perception, motivation, learning, attitude, personality - social: reference groups, social classes, culture |
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Marketing Environment
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external forces influence the development of marketing strategies
e.g. political, legal, social, economic, technological |
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Developing New Products
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(1) Idea Development
(2) New Idea Screening: assess the firm's ability to produce and market the product (3) Business Analysis: assess the product's compatibility and profitability (4) Product Development: develop the prototype (5) Test Marketing: trial mini launch of the product in limited areas that represent the potential market (6) Commercialization: full introduction of a complete marketing strategy and launch of the product |
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Consumer Products
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for household or family use, not intended for any purpose other than daily living
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Convenience Products
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are bought frequently, w/o a lengthy search, for immediate consumption
e.g. eggs, milk, bread |
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Shopping Products
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are often bought after customers have shopped around
e.g. furniture, clothing, sporting goods |
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Specialty Products
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require even greater research and shopping effort
e.g. designer clothing, shoes, art and antiques |
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Business Products
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used in the operation or manufacturing processes of businesses
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Raw Materials
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natural products
e.g. iron ore, bauxite, lumber |
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Major Equipment
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large, expensive items used in production
e.g. machines |
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Accessory Equipment
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items used for office
e.g. computers, fax machines |
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Component Parts
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e.g. tires
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Processed Materials
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e.g. varnish
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Supplies
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e.g. paper, pencils, paint
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Industrial Services
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e.g. financial, legal, etc. services
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Product Line
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a group of closely related products that are treated as a unit due to similar marketing strategy, production
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Product Mix
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all the products offered by an organization
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Introductory Stage (Product Cycle)
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focus on making consumers aware of the product and its benefits
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Growth Stage (Product Cycle)
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- sales increase rapidly and profits peak, then start to decline
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Maturity Stage (Product Cycle)
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- severe competition and heavy expenditures
- sales decline |
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Decline Stage (Product Cycle)
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- sales fall rapidly
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Branding
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the process of naming and identifying products
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Trademark
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a brand that is registered with the U.S. Patent and Trademark Office
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Manufacturer Brand
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initiated and owned by the manufacturer
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Private Distributor Brand
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owned and controlled by a wholesaler or retailer
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Generic Products
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products with no brand name
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Packaging
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external container, influences consumers' attitudes and their buying decisions
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Labeling
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the presentation of important information on the package
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Product Quality
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the degree to which a good, service or idea meets the demands and requirements of customers
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Price Skimming
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price new products, charge the highest possible price that buyers will pay
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Penetration Price
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low price to help products penetrate to the market and gain market shares quickly
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Psychological Pricing
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encourages purchases based on emotional rather than on rational responses
e.g. even/odd pricing, prestige pricing |
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Discounts
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temporary price reduction, to boost sales
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Marketing Channels
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group of organizations that moves products from producers to customers
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Retailers
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sell to consumers for home and household
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Wholesalers
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buy from producers or other wholesalers and sell to retailers
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Intensive Distribution
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a product is made available in as many outlets as possible
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Selective Distribution
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uses only a small number of outlets
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Exclusive Distribution
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an intermediary has the sole right to sell
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Transportation
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shipment of products to buyers
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Warehousing
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receive, store, and ship products
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Materials Handling
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physical handling and movement of products
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Advertising
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- paid, nonpersonal communication through mass media
- print, electronic and online |
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Personal Selling
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- direct, two-way communication
- most flexible |
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Publicity
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- nonpersonal communication through mass media
- news story, informative, seldom calls for action |
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Sales Promotion
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direct inducements offering added value or some other incentive for buyers to enter into an exchange
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