REFERENCE CHANNELS

A,  B C D,  H I J K L M N,  O P Q R S T U V W X Y Z

E  F  G

E

Entrepreneur:  One who takes on the financial risk of the initiation, operation and management of a business.

Earnings per Share:  The computation of a corporation's earnings based on the number of stock shares outstanding at a given point in time.

Embezzlement:  The act of an employee stealing money or assets of the company.

F

Factor:  To sell accounts receivable at a discount before they are due.

Fair Market Value:  The price at which a willing seller will sell, and a willing buyer will buy, when neither is under compulsion to sell or buy and both have reasonable knowledge of relevant facts.

FASB:  Financial Accounting Standards Board. The private organization responsible for establishing the standards for financial accounting and reporting in the United States.

FIFO:  First In First Out type of inventory valuation. The first goods purchased are assumed to be the first goods sold. (Proof that the Giant in Jack And The Beanstalk was actually an accountant: Fee FIFO Fum!)

Fiscal Year:  A business' reporting year, covering a 12-month month period. (Not necessarily ending on December 31.)

Fixed Assets:  Permanent assets of a company required for the regular conduct of business which will not be converted into cash during the next year. Examples are land, building, furniture and fixtures.

Fixed Cost:  Fixed costs are operating expenses that are incurred when providing necessities for doing business and have no relation to the volume of production and sales (as opposed to "variable costs"). Examples are rent, property taxes, and interest expense.

FOB:  Free-On-Board Destination. The seller of merchandise bears the shipping costs and maintains ownership until the merchandise is delivered to the buyer.

Franchise:  A business that has been licensed to sell the product of a manufacturer or to offer a particular service in a given area.

G

GAAP:  Generally Accepting Accounting Principles. A priority listing made up of statements of accounting principles issued by the AICPA (American Institute of Certified Public Accountants) and FASB (Financial Accounting Standards Board)

General Journal:  (GJ) A book or original entry in a double-entry system. The journal lists transactions and indicated accounts to which they are posted. The general journal includes all transactions which aren't included in specialized journals used for cash receipts, cash disbursements, and other common transactions.

General Ledger:  (GL) A book in which monetary transactions of a business are posted (in the form of debits and credits) from a journal. It is the final record from which financial statements are prepared. The general ledger accounts are often the control accounts which report totals of details included in subsidiary ledgers.

Goodwill:  An intangible asset that exists when a business is valued at more than the fair market value of its net assets. Goodwill is usually due to reputation, good customer relations, etc.

Gross Profit:  The amount by which the net sales exceed the cost of goods sold. (Also, profit made by a novelty store on plastic dog doodle.)

Gross Sales:  Total recorded sales before deducting any sales discounts or sales returns and allowances. (Also, sales of plastic dog doodle made by a novelty store.)

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