Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Accounting Definitions > N-O Accounting Definitions > Flashcards

N-O Accounting Definitions Flashcards

1
Q

<p>Naked Option</p>

A

<p>A call option for a stock that the option writer does not hold in his or her portfolio. A naked call option is much more risky than a covered call option, because if the call option is exercised by the option holder, the writer will probably lose money. (HOCK)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

<p>Natural Hedges</p>

A

<p>A hedge against foreign currency losses that happens naturally when a company's activities are set up such that they are not exposed to great foreign currency exchange losses. (HOCK)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

<p>Negotiable CD</p>

A

<p>A Certificate of Deposit with a very large denomination, usually $1 million or more. They are usually in bearer form, considered low risk and highly liquid. (Also called Jumbo CD.) (IMA)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

<p>Negotiated Price</p>

A

<p>In transfer pricing, the price charged by one segment of an organization to another for a product or service that is determined by negotiation between the segments. (IMA)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

<p>Net Income</p>

A

<p>Income for a period after subtracting expenses from all sources for that period. (Also called Net Earnings.) (IMA)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

<p>Net Present Value (NPV)</p>

A

<p>The difference between the present value of all cash inflows from a project or investment and the present value of all cash outflows required to obtain the investment, or to undertake the project at a given discount rate. (IMA)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

<p>Net Present Value Method</p>

A

<p>A method of evaluating capital projects that uses the net present value of the cash flows of the project to determine if the project would be beneficial to the organization. (HOCK)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

<p>Net Profit Margin</p>

A

<p>A financial ratio where net income is divided by sales. (Also called Net Profit Margin Percentage.) (IMA)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

<p>Net Realizable Value</p>

A

<p>1. The estimated selling price in the ordinary course of business less the reasonably predictable cost of completion and disposal. 2. Accounts receivable less allowance for bad debts. (IMA)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

<p>Net Working Capital</p>

A

<p>Current assets less current liabilities. (IMA)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

<p>Net Working Capital Ratio</p>

A

<p>A liquidity financial ratio that measures net working capital as a percent of total assets. (IMA)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

<p>Network</p>

A

<p>In data communications, a configuration in which two or more locations are physically connected for the purpose of exchanging data. (IMA)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

<p>Network Controls</p>

A

<p>Internal controls to insure accurate and secure flows of data in computer and communication systems. (IMA)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

<p>No-par Stock</p>

A

<p>The shares of a company that carry no nominal or par value. (IMA)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

<p>Nominal</p>

A

<p>A term signifying that a value has not been adjusted for inflation. (IMA)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

<p>Nominal Dollar</p>

A

<p>The data in the time series measured in the dollars that were current at the time each data point was captured. These dollars are affected by inflation. (HOCK)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

<p>Non-monetary Exchange</p>

A

<p>The exchange of goods or services between entities for which no monetary instruments are involved. (Also called Barter.) (IMA)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

<p>Non-price Competition</p>

A

<p>Methods firms use to attract customers other than price reductions, including advertising, free gifts, special packaging, etc. (IMA)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

<p>Non-value Added</p>

A

<p>An activity that increases a good's costs without increasing its value to the consumer. (IMA)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

<p>Noncash Investing And Financial Activities</p>

A

<p>A classification of events on the statement of cash flows for those investing and financing activities that do not include cash. (HOCK)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

<p>Noncontrollable, Traceable Fixed Costs</p>

A

<p>Fixed costs that cannot be controlled by the manager within a time span of one year or less. (HOCK)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

<p>Noncurrent Assets</p>

A

<p>Assets that are not expected to be sold, consumed or converted into cash during the normal operating cycle of a business or one year, whichever is longer. (HOCK)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

<p>Noncurrent Liabilities</p>

A

<p>Liabilities that are not expected to be settled within the normal operating cycle of the business or 12 months, whichever is longer. (HOCK)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

<p>Nonmanufacturing Overheads</p>

A

<p>Costs that are not involved in the production of the product. Even if these costs were not incurred the product could still be manufactured. Period costs are usually expensed when they are incurred. (HOCK)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

<p>Nonrecurring Items</p>

A

<p>One-time occurrences for an entity involving unusual income or expense. (IMA)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

<p>Normal (Or Extended Normal) Costing System</p>

A

<p>A cost allocation system that allocates overhead costs based on the actual number of the allocation base that was actually used in production. (HOCK)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

<p>Normal Cost</p>

A

<p>A costing system whereby cost objects are assigned the sum of direct materials and labor resources consumed plus an allocation of overhead based on normal capacity. (IMA)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

<p>Normal Profit</p>

A

<p>The net earnings for an enterprise that recognizes that a reasonable return on capital (both debt and equity) is one of the costs of the enterprise. (IMA)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

<p>Normal Spoilage</p>

A

<p>Inherent product deterioration that is expected even under the best operating conditions. It is unavoidable in the short run. (IMA)</p>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

<p>Notes Payable</p>

A

<p>A short-term debt instrument whereby the issuer promises repayment on or before a specified date. (IMA)</p>

31
Q

<p>Objective</p>

A

<p>What it is that is intended to be accomplished at the organizational or enterprise level. Objectives are similar to goals, but objectives are created at the enterprise or company level. (HOCK)</p>

32
Q

<p>Objective Function</p>

A

<p>In Linear Programming, the variable to be maximized (profit) or minimized (cost). (IMA)</p>

33
Q

<p>Objectivity</p>

A

<p>A trait of financial reporting that emphasizes the verifiable, factual nature of events or transactions and minimizes personal judgment in the measurement process. (IMA)</p>

34
Q

<p>Obsolescence</p>

A

<p>The loss in usefulness of an asset caused by technological or market changes. (IMA)</p>

35
Q

<p>Off-Balance Sheet Financing</p>

A

<p>Financing from sources other than debt and equity offerings that are not reflected on an entity's balance sheet, such as joint ventures, partnerships, and operating leases. (IMA)</p>

36
Q

<p>Off-Peak Pricing</p>

A

<p>A pricing strategy that charges a lower price for the good during times of the day or year when demand is lower. (HOCK)</p>

37
Q

<p>Oligopoly</p>

A

<p>A market situation in which a small number of sellers comprise the entire industry. (IMA)</p>

38
Q

<p>Open Interest</p>

A

<p>The total number of outstanding options contracts for each asset at the end of each day. (HOCK)</p>

39
Q

<p>Operating Activities</p>

A

<p>Any item that is not classified as either an investing or financing activity is an operating activity. Operating activities are generally part of the company's main business activities and central operations. (HOCK)</p>

40
Q

<p>Operating Budget</p>

A

<p>Detailed projection of all estimated revenue, expenses, and income based on forecasted sales revenue during a given period (usually one year). (Also called Operational Budget.) (IMA)</p>

41
Q

<p>Operating Cycle</p>

A

<p>The average time between the acquisition of materials or services and the final cash realization from the sale of products. (IMA)</p>

42
Q

<p>Operating Decisions</p>

A

<p>Decisions concerned with the best use of the company's limited resources. (HOCK)</p>

43
Q

<p>Operating Effectiveness</p>

A

<p>An assessment of whether or not the controls are functioning as they are intended to function. (HOCK)</p>

44
Q

<p>Operating Expenses</p>

A

<p>Expenses incurred in the course of ordinary activities of an entity. (IMA)</p>

45
Q

<p>Operating Income</p>

A

<p>Earnings before Interest and Taxes. (IMA)</p>

46
Q

<p>Operating Lease</p>

A

<p>A lease that does not meet the criteria for capitalized a lease; accounted for as rental payments. (IMA)</p>

47
Q

<p>Operating Leverage</p>

A

<p>The percent of fixed costs in a company's cost structure. (IMA)</p>

48
Q

<p>Operating Profit</p>

A

<p>The profit from a firm's core ongoing business operation. (IMA)</p>

49
Q

<p>Operating Profit Margin</p>

A

<p>A financial ratio represented as operating profit divided by sales. (Also called Operating Profit Margin Percentage.) (IMA)</p>

50
Q

<p>Operational Audit</p>

A

<p>A process of obtaining and evaluating evidence about operating procedures and events as compared with established criteria of good performance. (IMA)</p>

51
Q

<p>Operational Budget</p>

A

<p>A plan for the revenues and expenses associated with operating activities of a given period. (Also called Current Budget.) (IMA)</p>

52
Q

<p>Operational Plans</p>

A

<p>Developed from the tactical plans. Operational plans focus on implementing the tactical plans to achieve operational goals, and operational plans include budgeted amounts. It is operational plans that drive the day-to-day operations of the company. Operational plans are developed by middle and lower-level managers. (HOCK)</p>

53
Q

<p>Operational Risk</p>

A

<p>Risks resulting frombreakdowns in internal procedures, people and systems. (IMA)</p>

54
Q

<p>Operations</p>

A

<p>Activities of an entity that deal with producing, delivering and selling goods or services. (IMA)</p>

55
Q

<p>Opportunity Costs</p>

A

<p>The value of the forgone alternatives. (IMA)</p>

56
Q

<p>Option</p>

A

<p>A legal right to buy or sell something at a specific price within in a specified time. (IMA)</p>

57
Q

<p>Optional-Product (Feature) Pricing</p>

A

<p>A pricing strategy in which different optional products and/or features are available for the customer to purchase if they choose to. (HOCK)</p>

58
Q

<p>Ordering Cost</p>

A

<p>The cost of preparing a purchase order, and the special processing and receiving costs related to the number of orders processed. (IMA)</p>

59
Q

<p>Organization Structure</p>

A

<p>The arrangement of responsibilities within an entity. (IMA)</p>

60
Q

<p>Organizational Culture</p>

A

<p>The set of key values, beliefs, understanding and norms of an organization. (IMA)</p>

61
Q

<p>Organizational Goals</p>

A

<p>A desired future state that the organization attempts to attain. (IMA)</p>

62
Q

<p>Organizational Independence</p>

A

<p>The internal audit function should not be unduly influenced by individuals or departments within the company. This means that the internal audit function should not have any direct relationships with the various departments it will be auditing. Reporting directly to the board of directors achieves this organizational independence. (HOCK)</p>

63
Q

<p>Out-Of-The-Money</p>

A

<p>When the exercise price of the option is unfavorable to the holder of the option, the option is out-of-the-money because the option has no value due to the difference between the option price and the market price. (HOCK)</p>

64
Q

<p>Output Controls</p>

A

<p>Output controls ensure that a complete and accurate audit trail of the results of processing is reported to appropriate individuals for review. (IMA)</p>

65
Q

<p>Outsourcing</p>

A

<p>The process of purchasing goods and services from outside vendors rather than producing the same goods or providing the same services within the company. (IMA)</p>

66
Q

<p>Over-Applied Factory Overhead</p>

A

<p>During the period the amount of factory overhead that was applied was more than the actual factory overhead incurred during the period. This means that too many costs were allocated to the units produced and there is a credit balance in the factory overhead control account at the end of the period. (HOCK)</p>

67
Q

<p>Overdraft</p>

A

<p>A facility (usually at a bank or other financial institution) enabling an account holder to borrow up to an agreed amount, often for an agreed time. (IMA)</p>

68
Q

<p>Overhead</p>

A

<p>Indirect costs. (IMA)</p>

69
Q

<p>Overhead Allocation Rate</p>

A

<p>The amount of manufacturing overhead that will be charged (allocated) to each unit of a product for each unit of the allocation basis (direct labor hours, machine hours, and so on) used by that product during production. (HOCK)</p>

70
Q

<p>Overhead Allocations</p>

A

<p>Methods used to assign overhead costs to products, activities, or processes</p>

71
Q

<p>Overhead Budget</p>

A

<p>The estimated or planned expenditures of an entity for overhead costs (costs other than those directly related to products or services). (IMA)</p>

72
Q

<p>Overhead Rate</p>

A

<p>The ratio of overhead costs for a specific period related to the amount of some measurable causal factor during the same period. (Also called Burden Rate.) (IMA)</p>

73
Q
A

Accounting Definitions (15 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions