LEARN TO

 

 

​

​

​

​

​

​

​

​

 

#

​

1099 - A series of documents the Internal Revenue Service (IRS) refers to as "information returns." 

 

1120 - U.S. Corporation Income Tax Return is used to report the income, gains, losses, deductions, and credits, and to figure the income tax liability of a corporation.

​

A

​

Accounting:  The action or process of keeping financial accounts.

 

After-Tax Income: Also called income after taxes, represents the amount of disposable income that a consumer or firm has available to spend.

 

Asset: An asset is a resource with economic value that an individual or corporation owns or controls with the expectation that it will provide a future benefit.

​

Asset Allocation: The strategic distribution of investment funds among different asset classes, such as stocks, bonds, and cash, to optimize risk and return.

​

B

​

Bank Reserve: The amount of money that a financial institution is required to hold in reserve and is not allowed to lend.

 

Bear Market: A financial market characterized by a prolonged period of declining prices, typically 20% or more from recent highs.

​

Bearer Instrument: A financial instrument, such as a check or bond, that is not registered in the name of a specific owner and is payable to the holder.

 

Budget Deficit: When a government's expenditures exceed its revenues in a given fiscal year.

​

Before-Tax: Is the amount that you earn or receive before you have paid tax on it.

​

Bull Market: A financial market characterized by a prolonged period of rising prices.

​

Business Structure: Refers to the legal structure of an organization that is recognized in a given jurisdiction. An organization’s legal structure is a key determinant of the activities that it can undertake, such as raising capital, responsibility for obligations of the business, as well as the amount of taxes that the organization owes to tax agencies.

​

C

​

Capitalism: An economic system characterized by private ownership of the means of production, free markets, and competition.

​

Capitalization: The provision of capital for a company, or the conversion of income or assets into capital.

​

Capital Gains: Profits earned from the sale of an investment or asset, calculated as the difference between the selling price and the purchase price.

​

Cash: Money in coins or notes, as distinct from checks, money orders, or credit.

​

Central Bank: The institution responsible for managing a country's money supply, controlling interest rates, and implementing monetary policy.

​

Circulation: A stable economy is one in which money circulates effectively and continuously. When money held by a person or entity transfers to another on a daily basis, money becomes available for use to others.

 

CPA: A certified public accountant (CPA) is an accounting professional who has met certain education, exam, and experience requirements for licensure by a state board of accountancy.

​

Command Economy: An economic system in which key economic decisions are made by the central government, often associated with socialism and communism.

​

Contract: A written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law.

 

Corporation: A corporation is a type of business structure that gives the entity a separate legal entity from its owners. It is complex and expensive to set up, and it requires the owners to comply with more tax requirements and regulations.

​

Counterfeit: A fake or imitation currency produced with the intent to deceive and be passed off as genuine.

​

Credit: A contractual agreement in which a borrower receives something of value immediately and agrees to pay for it later, usually with interest.

​

Cryptocurrency: Digital or virtual currencies that use cryptography for security and operate on decentralized networks, such as Bitcoin and Ethereum.

​

Currency: A system of money in general use in a particular country, often consisting of coins and banknotes.

​

D

​

Debit: An entry recording an amount owed, listed on the left-hand side or column of an account.

 

Debt: An amount of money borrowed by one party from another, often for making large purchases that they could not afford under normal circumstances.

​

Deflation: The opposite of inflation, deflation is a decrease in the general price level of goods and services, often associated with economic downturns.

​

Diversification: Spreading investments across various assets to reduce risk by avoiding overexposure to a particular investment.

​

Dollar: The basic monetary unit of the US, Canada, Australia, and certain countries in the Pacific, Caribbean, Southeast Asia, Africa, and South America. 

 

Dollar Recovery System: Helps an individual or corporation recover dollars that were expensed by a corporation.

​

E

​

Economic Manager: A person who operates all wealth-building structures by a number and process system.

​

Economic Planning: Provides a guide for action, improves resource utilization, and gives motivation. Moreover, it sets out performance standards and allows flexibility to find alternative ways if needed.

 

Electronic Money (E-money): Digital currency stored and transacted electronically, often used for online purchases and transfers.

​

Enterprise Corporation: is defined as a legal entity possessing the right to conduct business on its own, for example, to enter into contracts, own property, incur liabilities and establish bank accounts.

​

Entrepreneurship: The process of starting and operating a business, taking on financial risks in the hope of profit.

​

Equity: The value of the shares issued by a company.

​

Exchange Rate: The value of one currency in terms of another currency, determining the cost of goods and services in international trade.

 

Exchange-Traded Fund (ETF): A type of investment fund and exchange-traded product, representing a basket of securities, such as stocks or bonds, that typically tracks an index.

​

Exchange Value: Occurs when the currency of the instrument that is utilized increases, decreases or remains the same. Ex, the US Dollar.

​

Expense: The cost required for something; the money spent on something.

​

F

​

​

Fiat Money: Currency that is not backed by a physical commodity like gold or silver but is accepted as a medium of exchange by the government's decree.

 

Fiscal Policy: The use of government spending and taxation to influence the economy, typically used to stabilize economic fluctuations.

​​

Fractional Reserve Banking: A banking system in which banks are required to hold only a fraction of their customers' deposits in reserve and can lend out the rest.

​

G

​

Globalization: The process by which businesses and other organizations develop international influence or start operating on an international scale.

 

Gross Domestic Product (GDP): The total value of all goods and services produced within a country's borders in a specific time period.

​

H

​

Holding Corporation: is a parent business entity—usually, a corporation or LLC—that doesn't manufacture anything, sell any products or services, or conduct any other business operations. Its purpose, as the name implies, is to hold the controlling stock or membership interests in other companies.

​

Hyperinflation: An extremely high and typically accelerating inflation, often leading to the devaluation of a country's currency.

​

I

​

Income: Money received, especially on a regular basis, for work or through investments.

​

Inflation: The rate at which the general level of prices for goods and services rises, eroding purchasing power.

 

Interest Rate: The cost of borrowing money, or the return on investment, expressed as a percentage.

 

Investment: The allocation of money or resources to assets or projects with the expectation of generating income or profit in the future.

​

IRA: An individual retirement account (IRA) is a savings account with tax advantages that individuals can open to save and invest in the long term.

​

L

​

Labor Force: The total number of people who are employed or actively seeking employment in a country or region.

 

Legal Tender: Currency that is officially recognized by a government as acceptable for the settlement of debts and transactions.

Limited Liability Company(LLC): A business structure allowed by state statute.

​

Liquidity: The ease with which an asset can be converted into cash without affecting its market price.

M

​

Market Capitalization: The total value of a company's outstanding shares of stock, calculated by multiplying the share price by the number of shares.

 

Market Economy: An economic system in which decisions about production, investment, and distribution are made based on supply and demand in the market, with limited government intervention.

 

Mint: A facility or institution that produces coins, typically operated by a government.

​

Money: A commodity accepted by general consent as a medium of economic exchange.

​

Monetary Policy: Actions taken by a central bank to control the money supply and interest rates in order to influence the economy.

​

N

​

Net Operating Loss: This is the result when a company's allowable deductions exceed its taxable income within a tax period.

​

Numismatics: The study or collection of currency, including coins, tokens, paper money, and related objects.

.

​

O

​

Operating Expense: An expense a business incurs through its normal business operations.

​

Options: Financial derivatives that give the holder the right, but not the obligation, to buy or sell an asset at a predetermined price before or at expiration.

​

P

​

Partnership: A partnership is a form of business structure that comprises two or more owners.

​

Private Equity: Investments in private companies that are not traded on public stock exchanges, typically involving venture capital or buyouts.

​

​

Q

​

Quantitative Easing: A monetary policy in which central banks purchase financial assets to increase the money supply and encourage lending and investment.

​

​

R

​

Recession: A significant decline in economic activity that lasts for an extended period, typically marked by a decrease in GDP, employment, and consumer spending.

 

Risk Management: The identification, assessment, and prioritization of risks, followed by coordinated and economical application of resources to minimize, control, and monitor the impact of such risks.

​

S

​

Socialism: An economic system in which the means of production are owned and controlled by the state or the community, with the goal of reducing economic inequality.

​

Sole Proprietor: A sole proprietorship is the simplest business structure and involves one individual who is responsible for the day-to-day operations of the business. 

​

Stock Market: A market where stocks or shares of publicly traded companies are bought and sold.

 

Stock Market Index: A statistical measure representing a particular market or sector, calculated from the prices of selected stocks.

 

Supply and Demand: The fundamental economic principle that describes the relationship between the availability of a good or service and the desire for it, affecting its price.

​

T

​

Taxes: These are mandatory contributions levied on individuals or corporations by a government entity—whether local, regional, or national.

 

Tax Credit: A credit from the IRS is given when your expenses exceed your income. (Total expenses, minus income.)

 

Time: Is the continued sequence of existence and events that occur in apparently irreversible succession from the past, through the present, into the future.

​

Trade Balance: The difference between a country's exports and imports of goods and services.

 

Treasury Bonds: Debt securities issued by a government, typically considered low-risk and used as a benchmark for other interest rates.

​

​

U

​

Underwriting: The process by which investment banks raise capital by issuing new securities on behalf of a corporation or government.

​

​

V

​

Value at Risk (VaR): A statistical measure of the potential loss on an investment portfolio over a specific time period and given a certain level of confidence.

​

W

​

Write-Off: An accounting action that reduces the value of an asset while simultaneously debiting a liabilities account.

​

​

Y

​

Yield: The income generated by an investment, typically expressed as a percentage of its market price or face value.

​