Part 3 Flashcards
The banking system that is made up of the European Central Bank and the local central banks of the 27 member states of the European Union.
European System of Central Banks (ESCB)
A method of mitigating risks by matching the maturities of liabilities to the maturities of assets.
Maturity matching
A set of standards used as the basis for many countries’ national accounting requirements.
International financial reporting standards (IFRS)
A tax that applies the equivalent of a sales tax to every operation that creates value.
Value-added tax (VAT)
In a database, the field used to identify an entity, such as employee number.
Key field
An accounting system in which an organization recognizes revenue only when cash is received and expenses only when cash is paid out.
Cash basis accounting
A computer network of local-area networks for a city, campus, or other medium-sized area.
Metropolitan-area network (MAN)
Reducing and eliminating variations (defects) from a desired outcome (the target value).
Conformance
Securities traded on an organized exchange with standardized contracts.
Exchange-traded securities
A type of unemployment caused by ups and downs in the business cycle, specifically by a lack of demand for labor.
Cyclical unemployment
Liabilities that satisfy two criteria: the amount of the loss can be estimated reasonably, and all available information implies that it is probable a liability will exist on or before the financial statement date.
Contingent liabilities
IT controls that determine and mitigate risks to critical assets, sensitive data, or operations, including standards, organizational structure, and physical and environmental controls.
Management controls
A cost measurement system that records the actual costs incurred for direct materials, direct labor, and overhead (by allocating actual amounts).
Actual costing system
When the US Federal Reserve System buys or sells government securities (bonds, notes, and bills) in the open market from the public.
Open market operations
An IT control related to the specific functioning of an application system that supports a specific business process.
Application control
A measurement of the amount of resources consumed by an activity.
Resource cost driver
Existing situations or circumstances with an uncertain potential for gain or loss; tied to certain future events that may or may not occur.
Contingencies
The accumulated net incomes (losses) that have been retained in an organization.
Undistributed earnings
The software interface between the hardware and the applications and end user.
Operating system (O/S)
A project scheduling technique that divides a project into sequential activities with estimated start and completion times.
Horizontal bar chart
Quotations of the number of units of one currency needed to exchange for a unit of a different currency.
FX rates
A legal minimum on the price of a good or service.
Price floor
A hedge of the foreign currency exposure of a net investment in a foreign operation, an unrecognized firm commitment, an available-for-sale security, or a foreign-currency-denominated forecasted transaction.
Foreign currency exposure hedge
A product pricing strategy that uses a relatively low market entry price in order to attract large numbers of buyers to win a large market share.
Market penetration pricing
The maximum amount of a good that may be imported to a country in a given time period.
Import quotas
Any tax for which the tax base is the value of a good, service, or property.
Ad valorem tax
In terms of networking hardware, a physical connection point to a device.
Port
A type of contract that requires a contractor to successfully perform the contract and deliver supplies or services for a price agreed to up front.
Lump sum contract
Determined by deducting the weighted average cost of capital from after-tax net income plus interest expense.
Economic value added (EVA)
Dividends that pay shares of stock, reclassifying a portion of retained earnings as paid-in capital instead of reducing total assets or shareholders’ equity.
Stock dividends
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
Contract that provides a lessee (the renter) less than total interest in a property or good owned by the lessor (the lender of the item).
Lease
A type of pension plan that defines the required annual contribution to the plan but makes no guarantee of the ultimate benefit level paid.
Defined contribution plan
The excess of the price paid for a subsidiary over the fair value of the subsidiary’s net assets.
Goodwill
The difference in costs between any two alternatives.
Incremental costs
A system of internal controls for managing the availability of computer and other resources and data after a processing disruption.
Contingency planning
A costing system that assigns costs to a specific job (a distinct unit, batch, or lot of a product or service).
Job costing
A government’s use of taxes and spending to achieve its macroeconomic goals.
Fiscal policy
Costs yet to be incurred that differ between alternatives.
Relevant costs
Detective controls that find errors and verify the accuracy and reasonableness of output data after processing is complete.
Output controls
Type of analysis that helps managers understand the interrelationships among cost, volume, and profit by focusing on the interactions among prices of products, volume or level of activity, per unit variable costs, total fixed costs, and mix of products sold.
Cost-volume-profit (CVP) analysis
Any factor that has a cause-and-effect relationship with costs, such as a rise in sales volume that affects a rise in sales commissions.
Allocation base
A type of analysis that looks at the gap between the organization and benchmark competitor that has the best quality in the industry.
Gap analysis
Bonds issued by tax-exempt state or local governments to finance public projects.
Industrial revenue bonds
A type of budget that is used when a project is completely separate from other elements of an organization or is the only element of a company.
Project budget
The existence of barriers to free trade.
Protectionism
The historical costs paid for goods or services.
Actual costs
Prudence and adequate consideration of the risks and uncertainty in business situations when presented with situations that require judgment.
Conservatism
A hardware control in which a process is done twice and compared.
Duplicate process check
Bonds secured by real estate.
First mortgage bonds
A network topology in which each device is wired to a central device that routes data to or from other devices, eliminating the need to wire between devices.
Star network
Trade barriers such as licensing requirements, unrealistic quality standards, or undue amounts of red tape in customs.
Nontariff trade barriers (NTBs)
A method of theoretically making a risk-free profit from the price differences between markets through the simultaneous purchase of an investment in one market and sale in another.
Arbitrage
A type of conformance that requires all products or services to meet a target value exactly, with no variation.
Robust quality conformance
Bonds that have staggered maturity dates.
Serial bonds
A budget that includes the total and per unit production cost for a period.
Cost of goods sold budget
An online tool set for employees.
Business-to-employee (B2E) e-commerce
A smoothing method that uses the average of the most recent data value set of a given time period.
Moving averages method
Government protection granted to authors and artists of all types.
Copyright
The party in a derivative transaction who is attempting to reduce an underlying business risk (usually loss of profitability).
Hedger
Type of asset-backed security in which finance companies (acting as factors) purchase receivables and collect payments from customers directly, also charging a fee to the seller to compensate for bad debts.
Pledging receivables/factoring
A comprehensive manufacturing production and inventory control methodology in which materials arrive exactly as they are needed for each stage of the production process.
Just-in-time (JIT) manufacturing
A system for pricing products or services that are transferred from one organizational subunit to another within the same organization.
Transfer pricing
Policies that address factors that will, over time, increase the potential of full-capacity output of the economy.
Supply-side policies
A learning curve analysis model that measures increased efficiency by adding the incremental time for each unit to the previous total time; average time per unit is then calculated by dividing total time by the number of units.
Incremental unit-time learning model
