B Accounting Definitions Flashcards
<p>Backflush Costing</p>
<p>A product costing approach used in a Just-in-Time operating environment in which some or all of the costing is delayed until the goods are finished. Standard costs are then pulled backward through the system to assign costs to products. (IMA)</p>
<p>Backup Controls</p>
<p>Controls, such as file duplicating, in an Information Technology (IT) environment to insure that data is not lost. (IMA)</p>
<p>Bad Debts</p>
<p>Accounts or notes receivable that management determines to be uncollectible after reasonable efforts to collect them have not been successful. (IMA)</p>
<p>Bailout Payback</p>
<p>A variation on the Payback Period method of evaluating potential projects, the Bailout Payback recognizes the possibility that the project may be ended prematurely and the equipment sold. (HOCK)</p>
<p>Balance Sheet</p>
<p>A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a particular point in time. (IMA)</p>
<p>Balanced Scorecard</p>
<p>An approach using multiple measures to evaluate performance, including financial measures, and the non-financial measures of customers, internal business processes, and learning and growth. (IMA)</p>
<p>Banker's Acceptances</p>
<p>Financial instrument of an entity stating that payment is guaranteed by a bank, commonly used in foreign trade. (IMA)</p>
<p>Bankruptcy</p>
<p>A condition in which a court has granted a company legal protection from creditors because it cannot meet its obligations as they come due. (IMA)</p>
<p>Basis Of Allocation</p>
<p>A measure of activity such as direct labor-hours or machine-hours that is used to assign costs to cost objects. (HOCK)</p>
<p>Batch Costing</p>
<p>The costs of activities related to a group of units of products or services rather than to each individual unit of product or service. (IMA)</p>
<p>Batch-Level Activities</p>
<p>These activities occur each time a batch is produced. Some examples are machine setup, purchasing, scheduling, materials handling and batch inspection. (HOCK)</p>
<p>Benchmarking</p>
<p>A process of measuring an entity's performance, products, and services against standards based on best levels of performance achievable or achieved by other entities. (IMA)</p>
<p>Best Efforts</p>
<p>A method of selling the shares of a new issuance in which the lead manager acts only as an agent, agreeing to sell as many shares as possible, but it does not guarantee any sale price for the company and it does not purchase the shares itself for resale. (HOCK)</p>
<p>Best Practice</p>
<p>A technique, method, process, or activity that is more effective at delivering a particular outcome than any other technique, method, process, or activity. (IMA)</p>
<p>Beta</p>
<p>A measurement of the movement of the price of a particular stock compared with the movement of the market as a whole during the same period. If a stock has a beta value less than 1, it is regarded as less risky than the overall market. If a stock has a beta value greater than 1, it is regarded as more risky than the market</p>
<p>Binomial Option-Valuation Models</p>
<p>Option pricing models in which the underlying asset can take on only two possible, discrete values in the next time period for each value that it can take on in the preceding time period. (IMA)</p>
<p>Black-Scholes Option-Valuation Model</p>
<p>A model for pricing options in which the value of an option depends on (1) the value of the underlying asset, (2) the time to expiration of the option, (3) the exercise price, (4) the volatility of the underlying asset, and (5) the risk-free rate or time value of money. (IMA)</p>
<p>Board of Directors</p>
<p>A group of individuals elected by a corporation's shareholders to oversee the management of the corporation. The members of a Board of Directors meet periodically and assume legal responsibility for corporate activities. (IMA)</p>
