alternating periods of prosperity and depression.

represents the financial condition of a corporation at a particular date.

these are assets that can be converted into cash, sold or consumed within a reasonable period of time.

It is the law ____ states that there is an inverse relationship between the price of a good and the amount buyers are willing to purchase of such a good.

It is the law of ____ states that there is a direct relationship between the price of a good and the amount offered for sale.

The decision to invest in the securities of a particular company is based on internal factors and external factors.

What are the economic indicators?

represents the total value of goods and services produced by Philippine nationals in a given year, regardless of whether such goods and services are produced within or outside the Philippines.

is an indicator of the general level of prices by measuring changes in the prices of a fixed basket of selected consumer goods and services, using some specified year as the base year.

This is the amount of money that exists in the economy at any given time.

Also referred to as narrow money and includes currency in circulation (paper money and coins) and demand deposits (checking accounts);

Also called broad money and consists of M1 plus time deposits and savings accounts in the banking system;

The broadest measure of money supply and consists of Ml and M2 plusThe broadest measure of money supply and consists of Ml and M2 plus

Increasing money supply is called

is accomplished by increasing bank reserve requirements, selling government securities in the open market, and raising the discount rate to banks.

the price of money and is the result of a choice between spending the money today or postponing spending until a later date.

Over time, the economy goes through alternating periods of prosperity and depression called the

business cycle has four (4) phases:

mean anything of monetary value that the corporation owns and uses in its business.

Assets are classified into

These are assets that can be converted into cash, sold or consumed within a reasonable period of time, typically a year. This includes, cash, investments in marketable securities, accounts receivable, inventories and supplies.

These are the tangible assets used in the business that are of a permanent or relatively fixed nature such as land, buildings, machinery and equipment.

are debts or claims against the corporate assets by creditors.

two categories of liabilities are:

is the residual interest in the assets of the company after deducting all liabilities.

These are debts that fall due within a year such as accounts payable, promissory notes payable and accrued expenses/ taxes.

These are obligations of the company that are due in more than one year from the reporting date. Mortgages, bonds, debentures and long-term bank loans would be classified as

Stockholders' equity is separated into three categories:

- These are the accumulated profits of the company after payment of cash dividends.

This is the amount paid by stockholders in excess of the par value of the shares.

This represents the issued and outstanding shares of the company, which are recorded at par value.

This is also referred to as Profit and Loss Statement or Statement of Operations.