Part 0 - Any Sources

Question 1

Layaway credit

Answer 1

Place a deposit and “lay the product away”, then pay balance while pickup

Question 2

Installment, revolving

Answer 2

~ (above)

Question 3

Corporate governance

Answer 3

System of rules, procedures and practices, controlled

Question 4

Overhead expenses

Answer 4

Ongoing business expenses that cannot be directly attributed to a specific activity

Question 5

Call market

Answer 5

Market participants place orders to buy or sell at certain bid or offered (ask) prices, which are then batched together and matched at predetermined time intervals

Question 6

Liability

Answer 6

Legal debts a company owes to third-party creditors

Question 7

Whims

Answer 7

Sudden desire/change in mind, usually unexplained

Question 8

Assertive

Answer 8

Forceful personality

Question 9

Underwriter

Answer 9

Party or individual, assumes risk for exchange payment (insurance premium)

Question 10

Treasurer

Answer 10

Oversees company’s cash management, capital managing, investments

Question 11

Standard setting bodies

Answer 11

Professional org.s setting standards for accounting

Question 12

Accounting regulation

Answer 12

Include standards

Question 13

GAAP (not an org)

Answer 13

Generally accpeted accounting principles

Question 14

FASB

Answer 14

As covered above, under SEC and aims to improve GAAPs

Question 15

*SEC

Answer 15

Securities and Exchange Commission (securities market only)

Question 16

Professional organization

Answer 16

Professional association better, associations related to a specific skill or job

Question 17

AICPA

Answer 17

American Institute of Certified Public Accountants

Question 18

Securities Act

Answer 18

1933

Question 19

Securities Exchange Act

Answer 19

1934

Question 20

Trust Indenture Act

Answer 20

1939

Question 21

Accrued expenses

Answer 21

= Liabilities, unpaid payments

Question 22

Break-even point

Answer 22

When a business starts to profit, covers up cost of investment

Question 23

Amortization

Answer 23

Spreading out payments over time

Question 24

Internal rate of return

Answer 24

Discount rate at which the net present value (NPV) of an investment equals zero

Question 25

Six Sigma

Answer 25

A method (quality control) allowing businesses to perform better, by minimizing defects/wastes

Question 26

Outstanding shares

Answer 26

Shares owned by shareholders

Question 27

Risk retention

Answer 27

Keep the risk instead of transferring it

Question 28

Intestacy

Answer 28

No will written as a deceased person

Question 29

Commodities exchange

Answer 29

(Part of commodities market), platform with procedural assistances

Question 30

Differential costs

Answer 30

Option A - Option B, subtraction, simple

Question 31

Solvency

Answer 31

Business’s ability to pay debts by analyzing ratios

Question 32

FICA

Answer 32

Federal Insurance Contributions Act, a category of tax

Question 33

Activity Based Costing

Answer 33

Allocate cost more precisely based on how much money it actually takes to produce

Question 34

Costing procedures

Answer 34

Taking all costs into consideration, addition

Question 35

Economies of scale

Answer 35

Bigger companies experience lower costs

Question 36

Regression

Answer 36

Turning data into graphs and find patterns

Question 37

Independent board member

Answer 37

No material connection with the corporation (BOD)

Question 38

Decentralized

Answer 38

Spreading the power of control

Question 39

Lobbying

Answer 39

Individuals or groups present arguments to the gov, for their benefit

Question 40

Affinity partnership

Answer 40

Collaboration of business and an org, b targets members/audiences of the org

Question 41

General ledger

Answer 41

Huge “notebook” for accountants, all transactions recorded

Question 42

Trial balance

Answer 42

Used to identify errors of the general ledger

Question 43

Working capital cycle (WCC)

Answer 43

Time taken for current assets and current liabilities INTO cash