P Accounting Definitions Flashcards
<p>Pacman Defense</p>
<p>A takeover defense in which the target company issues more shares to dilute the acquirer's holdings and raise cash, then use the cash to attempt a takeover of the acquirer in a hostile bid. (HOCK)</p>
<p>Paid-In Capital</p>
<p>The amount paid by investors in exchange for stock. (Also called Contributed Capital.) (IMA)</p>
<p>Par (Face) Value</p>
<p>The value stated on a share. This is the amount of the legal capital of the company and this may not be distributed as a dividend. (HOCK)</p>
<p>Par Value</p>
<p>1. The dollar amount printed on the face of some stock certificates. 2. The face value of a bond. (IMA)</p>
<p>Parallel Simulation</p>
<p>An audit technique that uses real data rather than simulated data but processes it through tested or auditor controlled programs. The output from the parallel simulation is compared with the output from the real processing. (HOCK)</p>
<p>Participating Bonds</p>
<p>Bonds that earn interest and also receive some, or all, of the dividend paid to common shares. (HOCK)</p>
<p>Participating Preferred Shares</p>
<p>Preferred shares that earn the preferred dividend and also receive some, or all, of the dividend paid to common shares. (HOCK)</p>
<p>Participative</p>
<p>A type of budgeting that allows managers to participate in the preparation of budgets. (Also called Bottom-Up.) (IMA)</p>
<p>Participative Standard Setting</p>
<p>A standard setting process that involves all the employees who will be affected by the standard. When employees participate in setting the standards, they are more likely to accept them and not see them as unreasonable. (HOCK)</p>
<p>Payback</p>
<p>The period of time necessary to recover the cash cost of an investment from the cash inflows attributable to the investment. (IMA)</p>
<p>Payroll Cost</p>
<p>1. Payments to employees for labor services. 2. Taxes and tax-like payments an employer incurs as a legal condition of employment such as unemployment insurance paid to state and federal governments. (IMA)</p>
<p>Peak-Load Pricing</p>
<p>A pricing strategy that involves charging a higher price for the same product or service at times when demand is the greatest and a lower price at times when demand is lowest. (HOCK)</p>
<p>Penetration Pricing</p>
<p>Pricing technique of setting a relatively low initial price to attract new customers (a price usually lower than the market price.) (IMA)</p>
<p>Pension</p>
<p>An amount given to a person usually after retirement. (IMA)</p>
<p>Percentage-of-Completion Method</p>
<p>A method of accounting for long-term construction contracts where revenue and gross profit are recognized each period based upon the progress of the construction. (IMA)</p>
<p>Perfect Competition</p>
<p>A market structure characterized by a many individual sellers who are selling a standardized product. Because of this they are price takers and are unable to influence the price of the product. (HOCK)</p>
<p>Performance</p>
<p>A general term applied to part or all of the conduct or activities of an entity over a period of time, often with reference to some standard. (IMA)</p>
<p>Performance Evaluation</p>
<p>A management process of reviewing an employee's performance over a period of time, comparing that performance to expectations or standards, and communicating the results to the employee. (IMA)</p>
<p>Performance Measurement</p>
<p>A quantification of the effectiveness and efficiency with which the objectives of a responsibility center have been accomplished. (IMA)</p>
<p>Period Cost</p>
<p>An expenditure or loss that is charged to the current period rather than as a cost of the products produced in that period. (IMA)</p>
<p>Periodic Reconciliation</p>
<p>One of the four duties that needs to be segregated, this is the periodic reconciliation between how much of the item is supposed to be in the company, and how much actually is. (HOCK)</p>
<p>Phishing</p>
<p>A high-tech scam that uses spam e-mail to deceive consumers into disclosing their credit card numbers, bank account information, Social Security numbers, passwords or other sensitive personal information. (HOCK)</p>
<p>Physical Access Controls</p>
<p>Computer facility controls should be in place to protect the physical assets of the computer center: the hardware, peripherals, documentation, programs and data files in the library. (HOCK)</p>
<p>Physical Custody</p>
<p>One of the four duties that needs to be segregated, this is the keeping of the actual item that is being controlled. (HOCK)</p>
<p>Physical Inventory</p>
<p>A physical count of all inventories on hand. (IMA)</p>
<p>Physical Security</p>
<p>Involves things such as keeping servers and associated peripheral equipment in a separate, secure room with bars on the windows and use of blinds or reflective film on the windows for heat blocking as well as physical protection. It also includes password protection for servers; monitoring of hardware components to prevent them from being removed from the premises; security for offsite backup tapes; and biometrics to identify a person based on physical or behavioral characteristics. (HOCK)</p>
<p>Plant</p>
<p>Land, buildings, machinery, equipment, furniture and other fixed assets used to produce products. (IMA)</p>
<p>Plant-Wide Overhead</p>
<p>A single overhead rate for an entire plant used to allocate overhead costs to products produced in the plant. (IMA)</p>
<p>Poison Pills</p>
<p>A takeover defense in which provisions included in a corporation's charters, bylaws, or contracts that reduce the value of the target to potential tender offerors. (HOCK)</p>
<p>Poison Put</p>
<p>A takeover defense in which bondholders have the right to demand repayment if there is any change in control resulting from a hostile takeover. (HOCK)</p>
<p>Political Risk</p>
<p>The risk of loss when investing in a given country caused by changes in a country's political structure or policies, such as tax laws, tariffs, expropriation of assets, or repatriation of profits restrictions. (IMA)</p>
<p>Portfolio</p>
<p>A group of investments held by an institution or individual. (IMA)</p>
<p>Post-Audit</p>
<p>A set of procedures for evaluating the results of a capital budgeting project. (IMA)</p>
<p>Post-Retirement Benefits</p>
<p>Payments to which former employees may be entitled once they are no longer employed, including pension benefits, death benefits, health benefits, and life insurance. (IMA)</p>
<p>Postponable Cost</p>
<p>A cost that may be delayed to a future period with very little, if any, effect on the current operations and efficiency of the company. (HOCK)</p>
<p>Practical Capacity</p>
<p>Measure of capacity that is the maximum level at which the plant or department can operate efficiently. (IMA)</p>
<p>Practical Costs</p>
<p>A level of costs that would be challenging to attain, but attainable under normal conditions. (HOCK)</p>
<p>Preferred Stock</p>
<p>Capital stock that provides a fixed dividend paid before any dividends are paid to common shareholders. It takes precedence over common stock in the event of liquidation. (IMA)</p>
<p>Premises</p>
<p>The assumptions that are made during the budgeting process about the outlook for the environment in which its business operates. (HOCK)</p>
