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Accounting Definitions > T-U-V Accounting Definitions > Flashcards

T-U-V Accounting Definitions Flashcards

1
Q

<p>T-Value</p>

A

<p>A measure of the reliability of each independent variable, which is the degree to which each independent variable has a valid, long-term relationship with the dependent variable. The t-value for each independent variable evaluates the contribution of that independent variable to the multiple regression analysis. (HOCK)</p>

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2
Q

<p>Tactical Planning</p>

A

<p>A plan for achieving the entity's objectives covering a relatively short time period, usually one year. (IMA)</p>

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3
Q

<p>Target Costing</p>

A

<p>A cost management tool used to reduce the overall cost of a product over its entire life cycle. The target is a predetermined cost that should result in an acceptable price to customers as well as an acceptable return to the organization. (IMA)</p>

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4
Q

<p>Target Pricing</p>

A

<p>Setting a selling price for a product or service based on the value of the product or service to the customer, constrained by competitor's prices of similar items. (IMA)</p>

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5
Q

<p>Target Return</p>

A

<p>The amount of return that is the goal of management. (HOCK)</p>

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6
Q

<p>Tariffs</p>

A

<p>Taxes levied on goods imported into a country. (IMA)</p>

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7
Q

<p>Taxation</p>

A

<p>The act of a government imposing a levy on individuals or corporations. (IMA)</p>

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8
Q

<p>Technical Insolvency</p>

A

<p>Not paying liabilities as they are due. This is not bankruptcy, but repeated or long-term technical insolvency may force a company into bankruptcy. (HOCK)</p>

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9
Q

<p>Test Data</p>

A

<p>Input data that is prepared by an auditor that contains both valid and invalid data. The auditor can use this data to test a system to see if the system processes the data correctly. (HOCK)</p>

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10
Q

<p>Theoretical Costs</p>

A

<p>The level of costs that would be attainable only under the best possible conditions. (HOCK)</p>

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11
Q

<p>Theory of Constraints</p>

A

<p>A method of optimizing a process when faced with limiting factors and bottlenecks. (IMA)</p>

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12
Q

<p>Theory Of Constraints (TOC)</p>

A

<p>A means of making decisions at the operational level that will impact a company's profitability positively. It requires the maximization of contribution in the department, or stage, of the production process that has the lowest level of capacity. (HOCK)</p>

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13
Q

<p>Three-Way Overhead Analysis</p>

A

<p>Overhead variance analysis in which three overhead variances are used - the volume, efficiency and spending variances. (HOCK)</p>

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14
Q

<p>Throughput Contribution</p>

A

<p>Revenue less direct material costs of goods sold. (IMA)</p>

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15
Q

<p>Throughput Contribution Margin</p>

A

<p>The rate at which contribution margin dollars are being earned at each step in the production process. This needs to be maximized for the stage of production that is the constraint. (HOCK)</p>

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16
Q

<p>Throughput Costing</p>

A

<p>An inventory costing method that treats all costs except those related to variable direct materials as costs of the accounting period in which they are incurred. The variable direct material costs are the only ones included in inventory values. (Also called Super-Variable Costing.) (IMA)</p>

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17
Q

<p>Time Drafts</p>

A

<p>A financial instrument that is payable at a specified point in the future. (IMA)</p>

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18
Q

<p>Time Series</p>

A

<p>A sequence of observations that are ordered in time. (IMA)</p>

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19
Q

<p>Time Value of Money</p>

A

<p>The concept that money now is worth more than in the future, even after adjusting for inflation, because the money now can earn interest until the time the money in the future would be received. (IMA)</p>

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20
Q

<p>Times Interest Earned</p>

A

<p>The ratio of earnings before interest, income taxes, and extraordinary items (EBIT) to annual interest expense. A measure of the entity's ability to make interest payments when they are due; i.e., the number of times interest is covered by earnings. (Also called Interest Coverage.) (IMA)</p>

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21
Q

<p>Tombstone Ad</p>

A

<p>An advertisement, usually placed in a business periodical, announcing the offering and its dollar amount and identifying members of the underwriting syndicate. It also must state that it is not an offer to sell the securities, that the securities are offered only by prospectus, and indicate where a copy of the prospectus can be obtained. (HOCK)</p>

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22
Q

<p>Top Down Budgeting</p>

A

<p>A budgeting process that starts with the top levels of the organization. (HOCK)</p>

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23
Q

<p>Top-Down Approach</p>

A

<p>An approach to auditing internal controls whereby specific risk factors are identified to determine the scope and evidence required in the assessment of internal control. (Also called Risk-based Approach.) (IMA)</p>

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24
Q

<p>Total Fixed Overhead Variance</p>

A

<p>The difference between the actual fixed overhead incurred and the amount that was applied using the standard rate and the standard usage for the actual level of output. (HOCK)</p>

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25
Q

<p>Total Labor Variance</p>

A

<p>The difference between the standard labor costs for the actual level of output (the flexible budget) and the actual costs incurred by the company. (HOCK)</p>

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26
Q

<p>Total Material Variance</p>

A

<p>The difference between the actual direct materials costs for the period and the standard costs for the standard amount of materials at the standard price per unit for the level of output actually produced (the flexible budget). (HOCK)</p>

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27
Q

<p>Total Variable Overhead Variance</p>

A

<p>The difference between actual variable overhead costs and the variable overhead that was applied to production. (HOCK)</p>

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28
Q

<p>Tracking Stock</p>

A

<p>A class of common stock that is tied to the performance of a particular division within the corporation; a way of divesting a business line without losing complete control. (IMA)</p>

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29
Q

<p>Trade Credit</p>

A

<p>Buying goods and services on account; a form of short-term financing. (IMA)</p>

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30
Q

<p>Trade Discount</p>

A

<p>A reduction in the stated selling price based on quantities ordered or purchased. (IMA)</p>

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31
Q

<p>Trading Securities</p>

A

<p>Securities bought and held principally for the purpose of selling them in the near term with the objective of generating profits from short-term price changes.</p>

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32
Q

<p>Transaction Controls</p>

A

<p>Internal controls within information systems to review individual transactions for accuracy, completeness, and validity. (IMA)</p>

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33
Q

<p>Transaction Gains or Losses</p>

A

<p>Gains or losses that result from a change in exchange rates between the functional currency and the currency in which a foreign currency transaction is denominated. (IMA)</p>

34
Q

<p>Transaction Processing</p>

A

<p>The component of an information system that converts economic events into financial transactions, records financial transactions in the accounting records, and distributes financial information to operating personnel. (IMA)</p>

35
Q

<p>Transfer Pricing</p>

A

<p>Price at which goods and services are transferred from one profit center to another. (IMA)</p>

36
Q

<p>Transferred-In Costs</p>

A

<p>The total costs that come with the new product from the previous department. They are similar to Raw Materials but in reality will include all of the costs (material and conversion costs) from the previous department. (HOCK)</p>

37
Q

<p>Transferring (Sharing) The Risk</p>

A

<p>One of the four responses to risk, transferring the risk is when the risk of loss is wholly, or partially, transferred to another organization. The main example of transferring risk is the purchase of insurance. (HOCK)</p>

38
Q

<p>Translation Adjustments</p>

A

<p>Adjustments that result when an entity's financial statements are translated from the entity's functional currency into the reporting currency. (IMA)</p>

39
Q

<p>Transmission</p>

A

<p>In communications, the mechanism by which the message is transferred from the sender to the intended recipients. (IMA)</p>

40
Q

<p>Treasury Bills (T-bills)</p>

A

<p>Short term securities issued by the U.S. Treasury with minimum denominations of $10,000 and maturities of three months, six months and one year. They are issued at a discount to face value. (IMA)</p>

41
Q

<p>Treasury Bonds</p>

A

<p>Long term securities issued by the U.S. Treasury with minimum denominations of $1,000 and maturities of ten years or more. (IMA)</p>

42
Q

<p>Treasury Notes</p>

A

<p>Medium term securities issued by the U.S. Treasury with minimum denominations from $1,000 and maturities of two to ten years. (IMA)</p>

43
Q

<p>Treasury Stock</p>

A

<p>Fully-paid capital stock reacquired by the issuing company through gift, purchase, or otherwise, and available for resale or cancellation. (IMA)</p>

44
Q

<p>Trend Projection</p>

A

<p>A method of forecasting that is used with a time series that has a long-term upward or downward trend. (HOCK)</p>

45
Q

<p>Trojan Horse</p>

A

<p>A computer program that appears to perform a useful and innocent function, however, it is actually a malicious program that is harmful when executed. (IMA)</p>

46
Q

<p>Unavoidable Costs</p>

A

<p>A cost that can be avoided if a particular option is selected. It is a cost that would go away if a certain decision were made. (HOCK)</p>

47
Q

<p>Uncollectible Accounts Receivable</p>

A

<p>An Account Receivable that has been reviewed and a determination made that the amount due will not be collected. (IMA)</p>

48
Q

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

A

<p>During the period the amount of factory overhead that was applied was less than the actual factory overhead incurred during the period. This means that not enough costs were allocated to the units produced and there is a debit balance in the factory overhead control account at the end of the period. (HOCK)</p>

49
Q

<p>Unexpected Loss</p>

A

<p>Loss in excess of the expected average loss. (IMA)</p>

50
Q

<p>Unfavorable Variance</p>

A

<p>The amount by which actual cost exceeds standard or budgeted cost, or the amount by which actual revenue is less than standard or budgeted revenue. (IMA)</p>

51
Q

<p>Unit Contribution</p>

A

<p>The difference between the selling price and the variable cost of one unit of a product. (IMA)</p>

52
Q

<p>Unit Cost</p>

A

<p>The cost of one unit of a product or of one unit of a cost element of a product. It is usually obtained by dividing a total cost by the total number of units. (IMA)</p>

53
Q

<p>Unit-Level Activities</p>

A

<p>These activities are performed for each unit that is produced. Some examples are hours of work, inspecting each item, operating a machine and performing a specific assembly task. (HOCK)</p>

54
Q

<p>Unitary Elasticity</p>

A

<p>A measure of the price sensitivity of a product in which a certain percentage change in price will lead to an equal percentage change in the demand for the product. (HOCK)</p>

55
Q

<p>Unsystematic Risk</p>

A

<p>The risk of price change due to the unique circumstances of a specific security or enterprise, as opposed to the overall market. This risk can be virtually eliminated from a portfolio through diversification. (Also called Company Risk.) (IMA)</p>

56
Q

<p>Upstream Costs</p>

A

<p>Costs incurred prior to the time a product is manufactured, including research and development and design. (IMA)</p>

57
Q

<p>Utility</p>

A

<p>The relative satisfaction or need gratification derived from a good or service. (IMA)</p>

58
Q

<p>Valuation</p>

A

<p>The process of determining the value of an asset, a security, or an entire entity. (IMA)</p>

59
Q

<p>Value</p>

A

<p>Attributed worth, expressed in money and applied to a particular asset, to services rendered, to a group of assets, or to an entire business unit, such as the value of a plant or business enterprise. (IMA)</p>

60
Q

<p>Value at Risk (VAR)</p>

A

<p>The worst loss that might be expected from holding a security or portfolio over a given period of time, given a specified level of probability. (IMA)</p>

61
Q

<p>Value Chain</p>

A

<p>The basic business functions that increase the usefulness to the customer of a product or service. For a manufacturing entity, the functions typically include Research and Development, Design, Production, Marketing, Distribution, and Customer Service. (IMA)</p>

62
Q

<p>Value Engineering</p>

A

<p>An evaluation of the activities in the Value Chain to reduce costs without sacrificing customer satisfaction. (IMA)</p>

63
Q

<p>Value-Added</p>

A

<p>Activities and processes that add value or usefulness to consumers of a product or service. (IMA)</p>

64
Q

<p>Value-Based Pricing</p>

A

<p>A pricing strategy where the selling price of a good or service is based primarily on the customer's perceived value of the good or service. (IMA)</p>

65
Q

<p>Variable Cost</p>

A

<p>An operating expense that varies directly, and proportionately, with sales or production volume, facility utilization, or some other measure of activity. (IMA)</p>

66
Q

<p>Variable Costing</p>

A

<p>Method of inventory costing that includes all direct manufacturing costs and variable indirect manufacturing costs as inventory (fixed indirect manufacturing costs are excluded). (Also called Direct Costing.) (IMA)</p>

67
Q

<p>Variable Manufacturing Costs</p>

A

<p>Include all of the variable costs of production - labor, materials and variable overheads - that were incurred in the production of the units sold. (HOCK)</p>

68
Q

<p>Variable Nonmanufacturing Costs</p>

A

<p>All variable costs that are not part of the production process. This includes, but is not limited to, marketing, selling, general and administrative costs that are variable in nature. (HOCK)</p>

69
Q

<p>Variable Overhead Efficiency Variance</p>

A

<p>Cost driver inputs actually used less the inputs that should have been used multiplied by the budgeted rate. (IMA)</p>

70
Q

<p>Variable Overhead Expenses</p>

A

<p>The portion of overhead costs that increase (decrease) as the number of units produced increase (decrease). (IMA)</p>

71
Q

<p>Variable Overhead Spending Variance</p>

A

<p>Actual amount of overhead incurred less the expected amount based on the flexible budget. (IMA)</p>

72
Q

<p>Variable Overhead Variances</p>

A

<p>Variances connected to variable factory overhead. (HOCK)</p>

73
Q

<p>Variance</p>

A

<p>The difference between actual results and standard budgeted results. (IMA)</p>

74
Q

<p>Venture Capitalists</p>

A

<p>Early investors in a company, venture capitalists often receive shares of the business and seats on the board in addition to the interest that they charge. (HOCK)</p>

75
Q

<p>Verifiability</p>

A

<p>The ability, through agreement among measures, to ensure that information represents what it purports to represent or that the chosen method of measurement has been used without error or bias. (IMA)</p>

76
Q

<p>Vertical analysis</p>

A

<p>Compares each amount on a financial statement with a base amount selected from the same year; e.g., advertising as a percent of sales. (IMA)</p>

77
Q

<p>Vertical Merger</p>

A

<p>A merger of two or more companies who are at different stages of production and distribution of a product. (HOCK)</p>

78
Q

<p>Virus</p>

A

<p>A self-replicating computer program that infects the host computer by spreading copies of itself into other executable programs. (IMA)</p>

79
Q

<p>Virus Hoax</p>

A

<p>An e-mail telling you that a file on your computer is a virus when it isn't. (HOCK)</p>

80
Q
A

Accounting Definitions (15 decks)

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