ILTS Business, Marketing, and Computer Education (216) key terms

A bookkeeping system in which every transaction is recorded in at least two accounts, with total debits always equaling total credits, keeping the accounting equation balanced and enabling reliable financial statements.

The fundamental relationship stating that assets equal liabilities plus owners' equity. Every recorded transaction preserves this balance, so the equation is the structural check behind the balance sheet.

A list of all general ledger accounts with their ending debit or credit balances, prepared to verify that total debits equal total credits before financial statements are produced.

The initial record of a business transaction showing the date, accounts affected, amounts debited and credited, and an explanation. Entries are posted from the journal to the ledger.

An accounting method that records revenue when earned and expenses when incurred, regardless of when cash changes hands. It requires adjusting entries and matches costs to the periods they benefit.

The guideline that expenses be recognized in the same period as the revenues they helped generate, so reported profit reflects the actual economic activity of that period rather than cash timing.

An end-of-period journal entry that updates account balances for items such as accrued revenue, accrued expenses, prepaid items, depreciation, and unearned revenue before statements are prepared.

The systematic allocation of a long-lived asset's cost to expense over its estimated useful life. Common methods include straight-line and declining balance, and it is a noncash expense.

A financial statement reporting assets, liabilities, and owners' equity at a specific date. It shows what the business owns, what it owes, and the residual claim of owners.

A financial statement summarizing revenues and expenses over a period to report net income or loss. It is often prepared in multi-step form separating gross profit from operating results.

Net sales minus cost of goods sold. It measures the margin earned before operating expenses and is the starting point for analyzing profitability and pricing decisions.

Current assets divided by current liabilities. It indicates a firm's short-term liquidity, showing whether near-term resources are sufficient to cover obligations coming due within a year.

Current assets minus current liabilities. Positive working capital suggests the business can fund day-to-day operations; persistent shortfalls signal liquidity pressure requiring financing or collection improvements.

A statement classifying cash receipts and payments into operating, investing, and financing activities. It explains the change in cash and reveals liquidity that accrual income alone may hide.

A calculation determining the sales volume at which total revenue equals total costs. Fixed costs divided by contribution margin per unit yields the break-even point in units.

Sales revenue minus variable costs. Expressed per unit or as a ratio, it shows how much each sale contributes toward covering fixed costs and then generating profit.

Expenses that remain constant in total within a relevant range of activity, such as rent or salaried staff, regardless of how many units are produced or sold.

The coordinated set of controllable decisions known as product, price, place, and promotion that a firm blends to reach target customers and achieve its marketing objectives.

The specific group of consumers a business chooses to serve with a tailored offering, identified through segmentation by demographics, geography, psychographics, or behavior.

Dividing a broad market into subgroups of buyers with similar needs or characteristics so that marketing efforts and product designs can be tailored effectively to each group.

The place a brand occupies in customers' minds relative to competitors. It is shaped by product features, price, messaging, and the perceived value the brand consistently delivers.

The added value a brand name gives to a product, reflected in customer loyalty, willingness to pay a premium, and recognition. It is built through consistent experience and communication.

The combination of advertising, personal selling, sales promotion, public relations, and digital or direct marketing a firm uses to communicate with its target audience and achieve objectives.

The stages a product passes through: introduction, growth, maturity, and decline. Marketing strategy, pricing, and promotion are adjusted at each stage as competition and demand change.

The approach used to set prices, such as cost-plus, penetration, skimming, or value-based pricing. Choice depends on costs, competition, demand elasticity, and positioning goals.

The path a product takes from producer to final consumer, possibly through wholesalers and retailers. Channel choices affect cost, coverage, and control over the customer experience.

The systematic gathering and analysis of data about customers, competitors, and markets, using surveys, interviews, observation, or secondary sources to support marketing decisions.

Coordinating the flow of materials, information, and money from suppliers through production to customers, aiming to reduce cost and delay while maintaining quality and availability.

Controlling the quantity and timing of stock held by a business, balancing carrying costs against stockout risk. Techniques include just-in-time ordering and economic order quantity.

An expression beginning with an equals sign that calculates a value from cell references, numbers, and operators. Relative and absolute references control how formulas copy across cells.

A cell reference locked with dollar signs, such as $B$4, so it does not change when a formula is copied or filled to other cells, unlike a relative reference.

A built-in spreadsheet operation, such as SUM, AVERAGE, IF, or VLOOKUP, that takes arguments and returns a result, automating calculations and conditional logic within formulas.

A visual representation of worksheet data such as a column, line, or pie chart. Choosing the right chart type and labeling axes correctly makes trends and comparisons clear.

A data store organized into tables of rows and columns linked by keys, queried with structured statements. Primary keys uniquely identify records and foreign keys reference other tables.

A structured request for data from a database, often written in SQL, that can filter, sort, join, and summarize records to answer a specific business question.

Rules that restrict what can be entered into a field or cell, such as allowed ranges or lists, improving accuracy by preventing invalid or inconsistent data from being stored.

Responsible, ethical, and safe use of technology, covering appropriate online behavior, respect for intellectual property, privacy protection, and awareness of a digital footprint.

The accepted conventions of courteous behavior in online communication, including clear subject lines, professional tone, respect for others, and avoiding all-caps or public shaming.

A written agreement specifying how students and staff may use school or organizational technology and networks, including prohibitions, monitoring, and consequences for violations.