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Accounting Definitions > F Accounting Definitions > Flashcards

F Accounting Definitions Flashcards

1
Q

<p>Facility-Sustaining Activities</p>

A

<p>These activities are incurred to support production in general, such as security, maintenance, plant management, depreciation of the factory and property taxes. (HOCK)</p>

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2
Q

<p>Factoring</p>

A

<p>The sale of accounts receivable at a discount to a factor (usually a financial institution). The financial institution then collects the accounts from the customer. (IMA)</p>

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3
Q

<p>Factoring Fee</p>

A

<p>The fee charged by the company buying receivables. The fee is usually a percentage of the face value of the receivables and the assessed risk of the receivables determines the amount of the fee. (HOCK)</p>

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4
Q

<p>Factory Overhead</p>

A

<p>All manufacturing costs except direct materials and direct labor. (IMA)</p>

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5
Q

<p>Factory Overhead Control Account</p>

A

<p>The account in which overhead costs are accumulated as they are incurred. The costs are then moved from this account to work-in-process as the overhead is allocated to the units produced. (HOCK)</p>

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6
Q

<p>Factory Overhead Variances</p>

A

<p>Variances connected to factory overheads, both variable and fixed overheads. (HOCK)</p>

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7
Q

<p>Fair Market Value</p>

A

<p>The exchange price that would prevail for a good or service traded in an active market consisting of a large number of well-informed buyers and sellers dealing at arm's length. (IMA)</p>

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8
Q

<p>Fair Value Method</p>

A

<p>A method used to value an entity's investments in marketable securities. If the carrying value of marketable securities falls below the Fair Market Value, then the value of the security should be reduced to the Fair Market Value. (IMA)</p>

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9
Q

<p>Fairness</p>

A

<p>Acting in an impartial manner and being free from bias, dishonesty or injustice. It requires a person to be open-minded, tolerant and accepting. (HOCK)</p>

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10
Q

<p>Fama-French Three-Factor Model</p>

A

<p>A model used to value securities, it has been applied to small-cap stocks and to firms with a high book-to-market ratio to explain why they have historically provided above average returns. (HOCK)</p>

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11
Q

<p>Favorable Budget Variance</p>

A

<p>A variance arising when actual or current performance exceeds expected performance. (IMA)</p>

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12
Q

<p>Federal Agency Securities</p>

A

<p>Securities that are issued by the federal agencies of the United States government. These securities are guaranteed only by the issuing agency, not the entire federal government of the United States. (HOCK)</p>

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13
Q

<p>Feedback</p>

A

<p>The process of informing users of information about how actual perfor­mance compares with the expected or desired level of performance. (IMA)</p>

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14
Q

<p>Financial Accounting</p>

A

<p>The accounting for assets, equities, revenues and expenses of an entity; primarily concerned with the historical reporting to external users of the financial position and operations of the entity on a regular periodic basis. (IMA)</p>

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15
Q

<p>Financial Accounting Standards Board (FASB)</p>

A

<p>An independent board consisting of seven members responsible for establishing generally accepted accounting principles for the U.S. (IMA)</p>

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16
Q

<p>Financial Budget</p>

A

<p>The part of the Master Budget that includes the Capital Budget, Cash Budget, Budgeted Balance Sheet, and Budgeted Statement of Cash Flows. (IMA)</p>

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17
Q

<p>Financial Instrument</p>

A

<p>An instrument having monetary value (e.g., bond). (IMA)</p>

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18
Q

<p>Financial Leverage</p>

A

<p>The extent to which the assets of an entity are financed with debt. (IMA)</p>

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19
Q

<p>Financial Leverage Ratio</p>

A

<p>Total assets as a proportion of total common equity, which measures the extent of financial leverage. (IMA)</p>

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20
Q

<p>Financial Reporting</p>

A

<p>Presentation of financial information indicating an entity's financial position, operating performance, and funds flow for an accounting period. (IMA)</p>

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21
Q

<p>Financial Risks</p>

A

<p>Risks that are connected to the financial health of the company. Examples include volatility of foreign currencies, volatility of interest rates, volatility of prices of commodities (inputs), credit risk, liquidity risk and market risk. (HOCK)</p>

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22
Q

<p>Financial Statement</p>

A

<p>A report containing financial information about an organization, including the Balance Sheet (or Statement of Financial Position), Income Statement, and Cash Flow Statement. (IMA)</p>

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23
Q

<p>Financing Activities</p>

A

<p>The activities that a company undertakes to raise capital to finance the business. (HOCK)</p>

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24
Q

<p>Financing Decisions</p>

A

<p>Decisions concerned with obtaining the funds to acquire the resources the company needs. (HOCK)</p>

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25
Q

<p>Financing Expenses</p>

A

<p>Expenses incurred by an entity in order to issue debt or equity securities. (IMA)</p>

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26
Q

<p>Finished Goods Inventories</p>

A

<p>The part of inventory that accounts for the completed product, ready for sale or other disposition. (IMA)</p>

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27
Q

<p>Firewall</p>

A

<p>A network configuration (usually both computer hardware and software) that prevents unauthorized traffic into and out of a secure network. (IMA)</p>

28
Q

<p>Firm</p>

A

<p>A business entity, such as a corporation</p>

29
Q

<p>First-In-First-Out (FIFO)</p>

A

<p>A method of inventory valuation and cost flow assumption, where the ending inventory cost is computed from the most recent purchases and the cost of goods sold is computed from the oldest purchases, including beginning inventory. (IMA)</p>

30
Q

<p>Fiscal Year</p>

A

<p>Any accounting period of 12 successive calendar months (or 52 weeks, or 365 days), used by an entity for financial reporting. (IMA)</p>

31
Q

<p>Fixed Asset</p>

A

<p>A noncurrent, nonmonetary, tangible asset used in the normal operations of a business. (IMA)</p>

32
Q

<p>Fixed Asset Turnover</p>

A

<p>Measures an entity's ability to generate sales from fixed assets. It relates sales to net property, plant, and equipment. (IMA)</p>

33
Q

<p>Fixed Budget</p>

A

<p>A budget with fixed and unchangeable amounts of revenues and expenses. (Also called a static budget.) (IMA)</p>

34
Q

<p>Fixed Charge Coverage Ratio</p>

A

<p>A leverage ratio, represented as earnings before fixed charges and taxes divided by fixed charges. Fixed charges include interest, required principal repayments, and leases. (IMA)</p>

35
Q

<p>Fixed Charges</p>

A

<p>Fixed financial costs such as interest payments and lease (rent) payments. (IMA)</p>

36
Q

<p>Fixed Cost</p>

A

<p>A cost that does not vary with the volume of activity in the short term. (Also called Nonvariable Cost or Constant Cost.) (IMA)</p>

37
Q

<p>Fixed Exchange Rate</p>

A

<p>A monetary system in which a country's currency is set at a fixed rate relative to other currencies. (IMA)</p>

38
Q

<p>Fixed Overhead</p>

A

<p>Overhead Costs that do not vary with the level of output</p>

39
Q

<p>Fixed Overhead Production-Volume Variance</p>

A

<p>The difference between the budgeted amount of fixed overhead and the amount of fixed overhead applied. (HOCK)</p>

40
Q

<p>Fixed Overhead Spending Variance</p>

A

<p>The difference between the fixed overhead incurred and the fixed overhead budgeted. (IMA)</p>

41
Q

<p>Flexible Budget</p>

A

<p>A budget in which the budgeted amounts may be adjusted to any activity level. (IMA)</p>

42
Q

<p>Flexible Budget Variance</p>

A

<p>The difference between the actual results and the flexible budget. (HOCK)</p>

43
Q

<p>Flexible Exchange Rate</p>

A

<p>An exchange rate for a country's currency that is determined by the market forces of supply and demand. (Also called Floating Exchange Rate.) (IMA)</p>

44
Q

<p>Flip-In Rights</p>

A

<p>Rights that are activated upon the acquisition of more than a specified ownership interest in the target corporation by an individual raider. (HOCK)</p>

45
Q

<p>Floating Exchange Rate</p>

A

<p>An exchange rate for a country's currency that is determined by the market forces of supply and demand. Also referred to as a Flexible Exchange Rate. (IMA)</p>

46
Q

<p>Flowchart</p>

A

<p>A graphical representation of the flow of information in which symbols are used to represent operations, data, reports generated, equip­ment, etc. (IMA)</p>

47
Q

<p>Forecast</p>

A

<p>A projection of the expected financial position, results of operations, and cash flows based on expected conditions in the future. (IMA)</p>

48
Q

<p>Foreign Corrupt Practices Act</p>

A

<p>A U.S. federal law requiring any company having publicly-traded stock to maintain records that accurately and fairly represent the company's transactions, and have an adequate system of internal accounting controls. Enacted with the intent to bring an end to bribery of foreign officials. (IMA)</p>

49
Q

<p>Foreign Exchange</p>

A

<p>Financial instruments, such as paper currency, notes, and checks, used to make payments between countries. (IMA)</p>

50
Q

<p>Foreign Exchange Risk</p>

A

<p>The risk that a transaction that has been denominated in a foreign currency will be impacted negatively by changes in the exchange rate. (HOCK)</p>

51
Q

<p>Foreign Exchange Swaps</p>

A

<p>The simultaneous purchase and sale of a given amount of foreign exchange for two different value dates. (HOCK)</p>

52
Q

<p>Forfaiting</p>

A

<p>A form of finance where a third party purchases trade receivables from an exporter at a discount, and then collects from the importer the payment using the shipped goods as collateral. (IMA)</p>

53
Q

<p>Forward Contract</p>

A

<p>A non standardized cash market transaction in which the delivery of the commodity is deferred until after the contract has been made. (IMA)</p>

54
Q

<p>Forward Delivery</p>

A

<p>A transaction in which the settlement will occur on a specified date in the future at a price agreed upon on the trade date. (Also called Forward Trade.) (IMA)</p>

55
Q

<p>Forward Market</p>

A

<p>A market in which participants agree to trade some commodity, security, or foreign exchange at a fixed price for future delivery. (IMA)</p>

56
Q

<p>Four-Way Overhead Analysis</p>

A

<p>Overhead variance analysis in which the 4 overhead variances are used. (HOCK)</p>

57
Q

<p>Franchise</p>

A

<p>A license granted by one entity (franchisor) to another entity (franchisee), entitling the franchisee to produce or market a product or service in a specific area, for a specific time. (IMA)</p>

58
Q

<p>Fraud</p>

A

<p>An intentional misrepresentation of material existing fact made with knowledge of its falsity. (HOCK)</p>

59
Q

<p>Fraudulent</p>

A

<p>Intentional perversion of truth in order to induce another to part with something of value or to surrender a legal right. (IMA)</p>

60
Q

<p>Fringe Benefit</p>

A

<p>Non-wage forms of compensation, including pensions and health insurance, provided to an employee in addition to monetary compensation. (IMA)</p>

61
Q

<p>Full Cost</p>

A

<p>The sum of all the costs in all the business functions. (IMA)</p>

62
Q

<p>Function</p>

A

<p>The general end or purpose to be accomplished by an organizational unit, such as administration, selling, or research. It can also be a group of related activities serving a common end. (IMA)</p>

63
Q

<p>Functional Currency</p>

A

<p>The currency of the primary economic environment in which the entity operates. (IMA)</p>

64
Q

<p>Future</p>

A

<p>A legal agreement to make or take delivery of a specified instrument at a fixed future date at a price determined at the time of dealing. (IMA)</p>

65
Q

<p>Futures Contracts</p>

A

<p>An agreement to buy or sell a specified quantity of a specified asset on a future date for a specified price. Futures contracts are traded on a formal exchange. (HOCK)</p>

66
Q
A

Accounting Definitions (15 decks)

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