Flashcard Terms (F's)
Financial Accounting Standing Board
An independent group that oversees the development and revision of the GAAP
Financial Instrument
A monetary contract between parties
Fixed costs
The necessary expenses of the manufacturing process other than the cost of materials or labor used in production
Fixed Exchange Rate System
A system where a currency’s value is tied to the value of another single currency, to a basket of other currencies, or to another measure of value, such as gold
Fixed-Rate Currency Exchange System
When a country’s currency value is fixed or pegged by a monetary authority against the value of another currency, a basket of currencies, or another measure of value
Flat Stuctures
Organizational structures with few layers
Floating Exchange Rate
A system where the value of currency in relation to others is allowed to freely fluctuate subject to market forces
Foreign Currency
Any form of money in circulation in a different country
Foreign Exchange Market
The market in which people use one currency to buy another currency
Forward Currency
A contract in which the firm agrees to pay a set rate at the beginning of a contract.
Free Trade
International trade left to its natural course without tariffs, quotas, or other restrictions
Free Trade Agreements
Economic agreement between countries to allow free trade between members
Free Trade Zone
An area where the nations allow free, or almost free, trade among each other while imposing tariffs on goods of nations outside the zone
Fronting Loan
A loan made between a parent company and its subsidiary through a financial intermediary such as a bank
Functional Departmentalization
Organizing a company’s people, tasks, and resources based on business functions such as marketing, production, and sales