ACCOUNTING AND FINANCIAL TERMS
Currency: money in current use.
Fiat currency: "fiat lux" is Latin for "Let there be light!"
Fiat currency is paper money made legal and
given value only by an act of government.
Its value is not supported by a supply of a
precious metal or restricted by a fixed exchange
rate relative to the value of another nation's
currency.
sovereign: Independent, not subordinate to another nation.
sovereign currency: Currency issued by a sovereign nation. The same as fiat currency.
Account: a statement of moneys received and paid.
Account balance: the net value of an account.
Surplus: a positive account balance.
Deficit: a negative account balance.
Deficit hawk: a politician or journalist who believes
that reducing federal spendng will improve
the economy, even during a recession.
Credit: an addition to an account.
Debit: a subtraction from an account.
Transaction: a sale of goods and/or services for money.
The buyer debits cash and credits an account.
The seller credits cash and debits an account.
Debt: an amount of money owed.
Debtor: one who owes money.
Creditor: one to whom money is owed.
Asset: an item representing a credit to an account.
Liability: an item representing a debit to an account.
Revenue: a source of a credit.
Expenditure: a source of a debit.
Budget: a plan listing revenues and expeditures.
Insurance: a contract providing payment to an insured party
upon a loss or other event.
Beneficiary: one who is insured.
Benefit: amount due to a beneficiary .
Premium: periodic payment by the beneficiary to the insurer.
Trust fund: account in which premiums are held.
Domestic: within the nation
GDP: Gross Domestic Product -
The total annual retail value of goods and services
delivered within the nation.
Recession: a period of months in which the GDP declines
and fails to rise again.
Infrastructure: Basic structure such as systems of education,
transportation, communication, law, etc.
Commodities: Goods in everyday use.
