FC upload ms-dos II Flashcards
Events that occur after the balance sheet date (usually the end of the fiscal year) but before the financial statement issuance date; they should be disclosed if material (i.e., useful to users), such as sale of a plant.
Subsequent events
Any costs that have already been incurred and that cannot be changed by any decision made now or in the future.
Sunk costs
An over-the-counter (possibly dealer-orchestrated) exchange or swap between two counterparties of required payment streams for a specific time period.
Swap
An issue of bonds that all have the same maturity date.
Term bonds
Loans with floating or fixed interest and a fixed maturity.
Term loans
The concept that money received today is worth more than money received tomorrow because the money could be invested to earn a return greater than the original investment.
Time value of money
The concept that information must be available at the time the decisions need to be made or it will be of no value.
Timeliness
A measure of an organization’s ability to service all of its liabilities; the number of times a company can cover fixed obligations with earnings before interest and taxes (EBIT).
Times interest earned
The financing advanced to a buyer to facilitate sales; results in an account receivable.
Trade credit
The practice of manufacturers inducing their wholesalers to carry more inventory than they can reasonably sell.
Trade loading
Symbols or words that distinguish an organization or product.
Trade names OR Trademarks
The risk of poorly trained investors making poor choices.
Trader risk
A system for pricing products or services that are transferred from one organizational subunit to another within the same organization.
Transfer pricing
The risk that fluctuations in exchange rates will affect reported income.
Translation exposure
The most common money market instrument; government securities that are highly liquid with an active secondary market and that mature in a year or less.
Treasury bills (T-bills)
Stock that has been repurchased by the issuing organization, reducing both assets and stockholders’ equity.
Treasury stock
A tax that is collected for a particular need, such as a gas tax levied to maintain roads.
Use tax
A ratio used as a prospecting tool to determine the maximum loss over a future period of time given an assigned level of probability.
Value at risk
A tax that applies the equivalent of a sales tax to every operation that creates value.
Value-added tax (VAT)
A transfer pricing model that sets transfer prices at the unit’s variable cost, or the actual cost to produce the good or service less all fixed costs.
Variable cost model
Costs that rise and fall as a firm’s output level rises and falls.
Variable costs
The extent to which a high degree of consensus can be formed between independent measurers when using the same techniques.
Verifiability
The proportion of debt used in an organization times the after-tax cost of debt, plus the proportion of equity used times the cost of equity.
Weighted average cost of capital (WACC)
A method for calculating the equivalent units of production for a department that uses the number of units transferred to the next department or to finished goods plus the equivalent units in the department’s ending WIP inventory.
Weighted average method
The incremental cost required to surpass the prior marginal cost of capital break point.
Weighted marginal cost of capital
Paper or electronic documents arranged in columnar format for accumulating and recording adjusting entries when preparing financial statements.
Working papers
The combination of the present values of separate cash flows.
Yield-to-maturity (YTM)
Disbursement accounts that are maintained at a zero balance.
Zero-balance accounts (ZBAs)
A type of budget that starts with zero dollars allocated to budget items rather than making incremental changes to already existing allocations.
Zero-based budget
Bonds that carry zero or very low interest but are instead issued at a substantial discount from par value, resulting in amortized discounts (a tax deduction) to maturity and no payments until maturity.
Zero-coupon bonds
The accumulated resources of an organization raised through debt and equity financing and through the organization’s productive efforts.
Capital
A specific cash amount levied on a particular commodity, such as liquor.
Excise tax
Falsified reporting designed to mislead financial statement users, usually by understating or overstating assets/liabilities or revenues/expenses.
Fraudulent financial reporting
Increases in net assets (equity) due to incidental or peripheral transactions except those resulting from investments by or distributions to owners.
Gains
The broad guidelines and specific procedures for accounting that have substantial authoritative support in the business community.
Generally Accepted Accounting Principles (GAAP)
A set of standards required or permitted for use by over 115 countries (including supranational bodies such as the European Commission), created to provide harmony among the regulations and accounting standards related to financial reporting across national boundaries.
International financial reporting standards (IFRS)
The potential benefits given up when one alternative is selected over another.
Opportunity costs
The way we interpret verbal or nonverbal messages by our own references.
Attribution
An activity in which a group generates new ideas; ideas are accepted without criticism and are then evaluated together.
Brainstorming
A regular pattern of expansion (recovery) and contraction (recession) in the level of economic activity.
Business cycle
Situation in which a country takes over the assets of an organization.
Confiscation
A measure of the collective changes in the cost of living for the average consumer household.
Consumer price index (CPI)
A licensing agreement whereby an organization manufactures for a foreign market.
Contract manufacturing
An increase in production costs that reduces supply and increases prices.
Cost-push inflation
An in-kind trade made between parties, typically through a trading organization.
Countertrade
The ability to understand and communicate effectively across cultures.
Cultural intelligence
A type of unemployment caused by ups and downs in the business cycle, specifically by a lack of demand for labor.
Cyclical unemployment
An increase in aggregate demand that pulls up the price level.
Demand-pull inflation
Attempt to eliminate or reduce the severity of recessions, or maintain growth at a noninflationary pace, through active fiscal and monetary policy.
Demand-side policies
The interest rate on loans that the Federal Reserve makes to commercial banks.
Discount rate
Accepting and respecting individual differences and being inclusive of such things as different backgrounds, values, beliefs, experiences, and skills.
Diversity
The situation in which a host county acquires more ownership of a foreign business.
Domestication
