FC upload ms-dos Flashcards
(500 cards)
1
Q
definition
A
term
2
Q
An organization’s standards of behavior.
A
Corporate values
3
Q
The combination of processes and structures implemented by the board in order to inform, direct, manage and monitor the activities of the organization toward the achievement of its objectives.
A
Governance
4
Q
A department, division, team of consultants, or other practitioner(s) that provide independent, objective assurance and consulting services designed to add value and improve an organization’s operations.
A
Internal audit activity
5
Q
An independent, objective assurance and consulting activity designed to add value and improve an organization’s operations; brings a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
A
Internal auditing
6
Q
The conformity and adherence to policies, plans, procedures, laws, regulations, contracts, or other requirements.
A
Compliance
7
Q
The risk derived from the environment without the mitigating effects of internal controls.
A
Absolute risk OR Inherent risk
8
Q
A type of risk that revolves around the business impact that would be experienced if certain risks were realized.
A
Acceptable risk
9
Q
A risk level derived from an organization’s legal and regulatory compliance responsibilities, its threat profile, and its business drivers and impacts.
A
Acceptable risk level
10
Q
A level of control that is present if management has planned and organized in a manner that provides reasonable assurance that the organization’s risks have been managed effectively and that the organization’s goals and objectives will be achieved efficiently and economically.
A
Adequate control
11
Q
A condition that warrants attention as a potential or real shortcoming that leaves the organization excessively at risk.
A
Control deficiency
12
Q
The policies, procedures (both manual and automated), and activities that are part of a control framework, designed and operated to ensure that risks are contained within the level that an organization is willing to accept.
A
Control processes
13
Q
A structured, consistent, and continuous process across the whole organization for identifying, assessing, deciding on responses to, and reporting on opportunities and threats that affect the achievement of its objectives.
A
Enterprise risk management (ERM)
14
Q
Limitations of risk management, control, and governance related to human judgment, resource limitations, and the need to balance the costs of controls in relation to expected benefits.
A
Inherent limitations
15
Q
The type of risk found throughout the environment.
A
Pervasive risk
16
Q
The risk remaining after management takes action to reduce the impact and likelihood of an adverse event, including control activities in responding to a risk.
A
Residual risk
17
Q
The identification of risk, the measurement of risk, and the process of prioritizing risk or selecting alternatives based on risk.
A
Risk analysis
18
Q
The identification of risk, the measurement of risk, and the process of prioritizing risk (considering likelihood and impact) or selecting alternatives based on risk.
A
Risk assessment
19
Q
The assignment of risk into categories, such as financial risk, operational risk, strategic risk, or reputation risk.
A
Risk classification
20
Q
The method of recognizing possible threats and opportunities.
A
Risk identification
21
Q
A process to identify, assess, manage, and control potential events or situations to provide reasonable assurance regarding the achievement of an organization’s objectives.
A
Risk management
22
Q
The evaluation of the magnitude of risk, based on the likelihood and impact of risk occurrence.
A
Risk measurement
23
Q
Ranking risks, formally or informally, from the highest to the lowest, establishing the relative strength of each risk and the potential consequences of each.
A
Risk prioritization
24
Q
The actions taken to manage risk.
A
Risk response
25
The attitude and actions of the board and management regarding the importance of control within the organization; provides the discipline and structure for the achievement of the primary objectives of the system of internal control.
Control environment
26
The amount of risk an organization is willing to accept in pursuit of value.
Risk appetite
27
The comparison of an organization or project to similar internal or external organizations or projects, for the purpose of determining areas for potential improvement and to identify best practices. May also be used to assess likelihood and impact of potential events across an industry.
Benchmarking
28
The acceptable levels of variation relative to the achievement of objectives.
Risk tolerance
29
As related to risk, an uncertain event with a positive consequence.
Opportunity
30
A method of electronic funds transfer that sends payments in batches.
Automated clearing house (ACH)
31
A limiting factor, barrier, or constraint that slows down a product's total cycle time.
Bottleneck
32
A fundamental rethinking of business processes in order to achieve improvements in cost, quality, service, and speed.
Business process reengineering (BPR)
33
Any direct link between businesses and the use of online business marketplaces, such as EDI or online catalogs.
Business-to-business (B2B) e-commerce
34
Marketing and selling products to customers online.
Business-to-consumer (B2C) e-commerce
35
An online tool set for employees.
Business-to-employee (B2E) e-commerce
36
The maximum rate of output generated by a process.
Capacity
37
An organizational structure in which there are several levels of authority, a long chain of command, and a narrower span of control.
Centralized structure
38
The line of authority in an organization.
Chain of command
39
A manufacturing system that completely integrates all factory and office functions within an organization throughout the life cycle of a product or service.
Computer-integrated manufacturing (CIM)
40
An organizational structure in which there are fewer levels of authority, a shorter chain of command, and a wider span of control.
Decentralized structure
41
An organizational structure for grouping work into specialized units and jobs.
Departmentalization
42
Organizational structure in which divisions are fairly autonomous units.
Divisional structure
43
Conducting commercial activities over the Internet.
E-commerce
44
An intercompany communication directly between applications in standard format.
Electronic data interchange (EDI)
45
The transfer of monetary value and financial data from one bank to another.
Electronic funds transfer (EFT)
46
A language used for Internet applications; it is accessible by any type of computer platform, allows new tags to be defined, has interactive elements, and eases interapplication communication.
Extensible markup language (XML)
47
Products that are ready-to-wear, ready-to-eat, ready-to-drive, or ready-to-use and are waiting to be purchased.
Finished goods
48
An organizational structure in which authority and decision-making are arranged by functional groups such as finance, marketing, manufacturing, and research.
Functional structure
49
The management area that focuses on reducing the costs of holding and transporting inventory without sacrificing customer service.
Inventory management
50
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
51
An organizational structure that is a team and project-based approach between functions and divisions.
Matrix structure
52
Commerce over mobile devices such as smart cell phones.
Mobile e-commerce
53
An organization's formal decision-making framework and its way of organizing authority, responsibilities, and performance activities.
Organizational structure
54
A collection of analytical techniques that examine and measure the basic elements of processes in order to understand their activities, relationships, and contributions to organizational goals.
Process analysis
55
Two-dimensional graphic representations of an operation in terms of the flow of activity through a process using graphic elements to represent tasks, flow, and inventory (storage).
Process flowcharts
56
The number of employees who report to an individual in the chain of command.
Span of control
57
A global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash.
Supply chain OR Logistics network
58
A systems management philosophy that states that every system has at least one constraint (bottleneck or barrier) limiting its output in pursuit of some goal.
Theory of constraints (TOC)
59
Consists of raw materials that have been only partly transformed into their finished state or components that have not been installed or connected.
Work-in-process (WIP)
60
A graphical representation of the actual or ideal path followed by any service or product; provides a visual sequence of the steps in a process, illustrates the relationship between parts, and identifies what the process does or should do.
Flowchart
61
A quality process improvement approach that focuses on the customer experience by reducing the number of defects in a process until they approach statistical insignificance.
Six Sigma
62
A circumstance where an organization owns and controls several different subsidiaries to promote cost and efficiency benefits.
Vertical integration
63
Concentration on the words and messages of others.
Active listening
64
The way a person prefers to express himself or herself.
Communication style
65
Groups of individuals that form around topics of interest for the purpose of learning and innovation in an organization.
Communities of practice
66
The process of interpreting the meaning of a message.
Decoding
67
Creating a message in the best sensory mode (such as seeing or hearing) and the best tone, format, length, etc.
Encoding
68
The way an organization identifies and manages its intellectual capital for learning.
Knowledge management
69
The ways individuals and groups interact and cooperate in an organization.
Organizational dynamics
70
The process of selecting some information and filtering out other information as it is received based on our needs, interests, values, opinions, and past experiences.
Selective perception
71
Patterns of relationships between social units, or "actors."
Social networks
72
A two-way transfer of information between a sender and a receiver; can be verbal, written, or nonverbal.
Communication
73
An appraisal method that solicits evaluation feedback from everyone an employee interacts with, including subordinates, superiors, and internal and external customers, as well as the employee.
360-degree feedback OR Multisource rating
74
A project scheduling technique that divides a project into sequential activities with estimated start and completion times.
Activity chart OR Gantt chart OR Horizontal bar chart OR Milestone chart
75
A cooperative negotiation approach based on shared interests and objectives; focus is on presenting exchanges of value for each party.
Added-value negotiating
76
A process in which the parties in a dispute agree in advance that they will abide by the decision of an arbitrator who is chosen to hear both sides and make a judgment.
Arbitration
77
A performance appraisal method that requires the appraiser to mark an employee's level of performance on a specific form.
Category rating
78
Forecasting methods based on the assumption that the variable being forecast exhibits a cause-and-effect relationship with one or more other variables.
Causal forecasting methods
79
A quality tool that uses a visual to map out a list of factors that are thought to affect a problem or a desired outcome.
Cause-and-effect diagram OR Ishikawa diagram
80
A simple visual tool used to collect and analyze data.
Check sheet
81
An organizational structure with many groups or teams to accomplish organizational objectives.
Cluster organization
82
In the organizational setting, refers to specific advising for new learning and improved work performance.
Coaching
83
Performance appraisal methods in which the appraiser directly compares the performance of each employee with that of others.
Comparative methods
84
The advantage that one organization has over competitors in realizing above-average financial performance.
Competitive advantage
85
The data gathered about current and potential competitors.
Competitive intelligence
86
An industry with stronger and larger leaders that give it market focus.
Concentrated industry
87
Reducing and eliminating variations (defects) from a desired outcome (the target value).
Conformance
88
A statistical process that illustrates variations from normal in a situation over time.
Control chart
89
A competitive strategy in which an organization will minimize development, advertising, and other costs in order to offer products and services at a lower cost than competitors.
Cost leadership
90
A project management tool used to schedule, organize, and coordinate tasks within a project.
Critical path method (CPM) OR Program evaluation review technique (PERT)
91
A learning curve analysis model that calculates cumulative total time by multiplying the incremental unit by the cumulative average time per unit.
Cumulative average-time learning model
92
A forecasting model that attempts to develop forecasts through group consensus.
Delphi method
93
A competitive strategy in which an organization strives to make its products or services different and unique in the industry.
Differentiation
94
To sell off business units early in the decline stage by finding interested buyers.
Divest
95
Type of conflict that erodes relationships and derails progress toward goals.
Dysfunctional conflict
96
Relates to outputs and the degree to which an organization's goals and objectives are achieved.
Effectiveness
97
Minimizing the use of resources in a product or service process as compared to standard expectations; the ratio of the resources actually used to the resources that were planned to be used.
Efficiency
98
An industry in the early stages of development.
Emerging industry
99
A process for analyzing external and internal factors that are important to setting and carrying out strategy.
Environmental analysis OR Environmental scanning
100
A forecasting method used when conditions in the past are not likely to hold in the future; involves a group of experts, each considering information and then weighing in with an opinion or conclusion regarding a specific forecast.
Expert judgment
101
A smoothing method that uses a weighted average of past time series as the forecast; selects only one weight, that of the most recent observation.
Exponential smoothing
102
A research process that gathers information on the external environment that might affect the industry and organization, such as factors related to the economy, government, laws and regulations, societal and cultural concerns, and technology, as well as specific industry or competitor trends.
External analysis
103
A competitive strategy in which an organization appeals to a narrower segment of the industry.
Focus
104
Analyzing past and present data in order to project the future.
Forecasting
105
An industry made up of a number of smaller competitors with no strong market leader.
Fragmented industry
106
A group that is established to accomplish a specific ongoing purpose and remains in existence.
Functional group
107
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
108
An industry in which products or services are similarly created and distributed for markets in more than one country.
Global industry
109
The way groups and individuals act and react.
Group dynamics
110
A measurement of the frequency of particular elements contributing to an overall set of data.
Histogram
111
A lateral approach to owning and gaining control of activities at a same level of the value chain.
Horizontal integration
112
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
113
Groups that develop on their own, without a formal decision by management; may form spontaneously in response to a function or task or from a sense of shared experiences or interests.
Informal groups
114
A growth strategy used by many organizations to control aspects of product or service development or customer buying processes.
Integration
115
A research process that collects information on an organization's resources, capabilities, structure, limitations, etc.
Internal analysis
116
A process that identifies the activities and responsibilities of a job, its relative importance and relationship to other jobs, the personnel qualifications necessary to perform the job, and the conditions under which the work is performed.
Job analysis
117
The way a job and its tasks are organized; includes what the tasks are, in what order they are done, and how they are done.
Job design
118
Broadening the scope of a job with an expansion of similar or different tasks.
Job enlargement
119
Adding more depth to a job by adding responsibilities.
Job enrichment
120
A method of job enlargement where employees move between different tasks and jobs.
Job rotation
121
A document that lists the knowledge, skills, and abilities (KSAs) necessary to perform a job satisfactorily.
Job specifications
122
When a scheduled task begins before its predecessor task is completed.
Lead time
123
A person who influences others to accomplish organizational goals and objectives.
Leader
124
Skills that relate to imparting the vision and mission of an organization, setting strategy and direction, ensuring the overall financial stability of the organization, minimizing organizational risk, and inspiring others to achieve the goals.
Leadership skills
125
Skills that involve managing the people and processes that accomplish specific organizational objectives; include planning, organizing, staffing, directing, monitoring, and controlling.
Management skills
126
Cues in the marketplace about an organization's actions or possible actions.
Market signals
127
An industry that is fairly well established.
Mature industry
128
A process in which a neutral third party intervenes to help parties in a dispute negotiate their differences.
Mediation
129
A process whereby a mentor who has developed certain expertise shares that expertise with a protege.
Mentoring
130
A smoothing method that uses the average of the most recent data value set of a given time period.
Moving averages method
131
An industry in which the products and services are segmented by country and are not competitive from country to country.
Multidomestic industry
132
A process of bargaining between two or more parties to try to reach a mutually acceptable outcome.
Negotiation
133
A type of analysis that involves evaluating the network of tasks and functions that contribute to a project in order to determine the most efficient path for reaching the project goals.
Network analysis
134
A structure that involves relationships between multiple organizations or separate entities within an organization that perform different aspects of work.
Network structure
135
A strategy that focuses on the entire organization and its plans for moving into the future and achieving its goals and objectives.
Organizational strategy
136
A histogram that breaks down quality problems into their various causes and lists them from most to least prevalent.
Pareto diagram
137
A process that measures the degree to which an employee accomplishes the work requirements stated in the performance standards and then communicates that information to the employee.
Performance appraisal
138
An effort to be the first, or at least an early, entrant in a market and become the market leader.
Pioneering
139
A method to decide issues based on their merits rather than on competitive or cooperative negotiating tactics.
Principled negotiation
140
A two-dimensional graphic representation of an operation in terms of the flow of activity through the process. Examines the combination of inputs, tasks, and responsibilities that comprise a process.
Process-flow analysis
141
Refers to the quantity of an organization's outputs (products and services) in relationship to the inputs (human and physical resources).
Productivity
142
The process of planning, organizing, directing, and controlling an organization's resources (people, equipment, time, and money) so that objectives can be met within defined scope, time, and cost constraints.
Project management
143
Forecasting methods that involve the use of expert judgment.
Qualitative forecasting methods
144
An organization's standards of excellence for product or service output.
Quality
145
An in-depth review of a company's processes and strategy from a quality standpoint, including analysis of best and worst practices.
Quality audit
146
Refers to not having complete ownership and financial responsibility for value chain areas.
Quasi-integration
147
The process of generating a pool of qualified applicants for an organization's jobs.
Recruitment
148
A type of conformance that requires all products or services to meet a target value exactly, with no variation.
Robust quality conformance
149
Developing a conceptual scenario of the future based on a well-defined set of assumptions.
Scenario writing
150
A type of analysis that describes how changes in probabilities and/or changes in payoffs affect a recommended decision alternative.
Sensitivity analysis
151
A widely used quantitative analysis technique in which software tools model the operation of a system and perform various computations.
Simulation
152
The amount of additional time an activity can consume without delaying a project past the expected completion date.
Slack time
153
An analytical method in which random fluctuations from the irregular component of the time series are averaged out.
Smoothing
154
The process of identifying human capital needs for the internal audit function and internal audit activities and ensuring that qualified individuals are available for engagements.
Staffing
155
A document that indicates how an organization will carry out its mission, vision, goals, and objectives, given factors in the internal and external environments.
Strategic plan
156
The process organizations use to determine where they want to be and how they will get there.
Strategic planning
157
The plans and means for developing advantageous positions and outcomes.
Strategy
158
A method for analyzing the elements of industry structure and the factors that affect and drive industry competition.
Structural analysis
159
A group that is dictated by an organization's formal organizational chart or governance structure, typically with an appointed supervisor and subordinates.
Structural group
160
A common way to analyze internal and external information; SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
SWOT analysis
161
When cooperative efforts bring about a result that is much stronger and advantageous than the sum of the individual parts alone.
Synergy
162
A strategic approach to attracting, developing, engaging, and retaining the right people to meet current and future business needs.
Talent management
163
A group charged with the completion of a task; the group's formal existence is expected to end with the completion of the assigned task.
Task group
164
A series of measurements taken at successive points in time or over successive periods of time (hours, days, months, etc.).
Time series analysis
165
An integrated quality management system that involves managers and employees and uses quantitative methods to continually improve an organization's processes.
Total quality management (TQM)
166
The process in which people acquire the capabilities (knowledge and skills acquisition and development) to help them achieve organizational goals and objectives.
Training
167
A model to analyze an organization's value creation activities.
Value chain
168
A geographically dispersed organization that is linked together through electronic communications.
Virtual organization
169
Groups that collaborate but do not have a purpose toward express performance objectives and results.
Work groups
170
Conformance to a quality specification expressed as a specified range around a target.
Zero defects conformance
171
(1) The use of research to develop new processes and products or significantly improve existing ones; (2) the process of employees gaining new capabilities that are useful for both present and future jobs.
Development
172
The continuous process of planning and directing changes that occur within an organization to achieve an intended result.
Change management
173
Situation in which a party's opportunity cost for producing a good or service, in comparison to that of other goods and services it can apply its resources toward, is lower than the opportunity cost for other parties.
Comparative advantage
174
A situation in which members of a group make decisions without considering a range of alternatives and perspectives.
Groupthink
175
A person who implements an organization's strategy and provides the necessary structure for people and operations on a day-to-day basis.
Manager
176
The sale of a government-owned operation to a private investor.
Privatization
177
A smaller group of individuals that has been organized to accomplish a common purpose and performance objectives.
Team
178
Teams that are dispersed geographically and primarily communicate via electronic methods.
Virtual teams
179
An IT control related to the specific functioning of an application system that supports a specific business process.
Application control
180
A type of firewall that serves as an intermediary for communications between the external world and private internal servers; intercepts external packets and, after inspection, relays a version of the information, called a proxy, to the private server, and vice versa.
Application gateway/proxy server
181
In a database, fields relating to entities.
Attributes
182
A type of processing that accumulates data changes until a set time and then releases them to the database.
Batch processing
183
A binary digit; the item that is lowest in the database hierarchy.
Bit
184
Networking hardware that connects two or more LANs with similar architectures.
Bridge
185
A network topology that has a main line (bus); all devices are connected to the line.
Bus network
186
A set of processes developed for the entire enterprise, outlining the actions to be taken by the information technology (IT) organization, executive staff, and various business units in order to quickly resume operations in the event of a business disruption or service outage.
Business continuity plan
187
Any alphanumeric key; the item that is second-lowest in the database hierarchy.
Character
188
A type of control in which an extra digit is added that has an algorithmic relationship to the remaining digits to show if the number was incorrectly entered such as by transposition.
Check digits
189
A network architecture that uses servers for specialized functions; clients (the recipients of these functions) are PCs that send requests to the servers.
Client/server architecture
190
The sum of all infrastructure and applications required to connect two or more network nodes (computers and devices).
Computer network
191
A computer network formed by a group of organizations to assist in intercommunications.
Consortium network
192
A system of internal controls for managing the availability of computer and other resources and data after a processing disruption.
Contingency planning
193
Files intended to be accessible only by the creator that are used to store data about a user's preferences.
Cookies
194
IT controls that are used once errors, fraud, or other control issues have been detected. These are designed to allow manual or automated correction of errors or irregularities discovered by detective controls.
Corrective controls
195
The removal of redundancies and errors in a database.
Data cleansing
196
Describes the data and the relationships between data in a database, including logical access paths and records.
Data definition language
197
A master record concerning the data in a database.
Data dictionary
198
In a database, the specific data in fields.
Data items
199
A language that has commands for viewing or changing a database.
Data manipulation language
200
The capability of sifting through and analyzing large volumes of data to find certain patterns or associations.
Data mining
201
A user-friendly method of querying a database for information.
Data query language
202
An input/output node for a mainframe system, consisting of either just a display and entry devices or a PC running terminal emulation software.
Data terminal OR Dumb terminal
203
Database designed to collect the information from one or more transactional databases for purposes of multiyear storage of records and reporting.
Data warehouse
204
Any repository of data in a computer system.
Database
205
An application that links users and programs to a database and allows the database to be manipulated by multiple applications.
Database management system (DBMS)
206
A broad category of software systems designed not to make decisions but to enhance information available to management in making decisions.
Decision support systems (DSS)
207
Uses public key encryption and a hashing algorithm (information about the transmitted data) to prevent an original message from being reconstructed.
Digital signature
208
A plain language label referring to a numeric IP address.
Domain name
209
A hierarchical server network that maintains the domain names for conversion to IP addresses.
Domain name system (DNS)
210
A hardware control in which a process is done twice and compared.
Duplicate process check
211
A hardware control in which received data is returned to the sender for comparison.
Echo check
212
A type of control that involves automated tests on data fields.
Edit check
213
Use of a mathematical algorithm to scramble data so that it cannot be unscrambled without a numeric key code.
Encryption
214
A portfolio of technologies that help disparate applications communicate.
Enterprise application integration (EAI)
215
Modular suites of business applications that share data between modules seamlessly and store all data in a single repository.
Enterprise resource planning (ERP) systems
216
In a database, a record that relates to a person, place, or thing.
Entity
217
Software systems that capture the knowledge of a professional using a series of decision points; used to automate complex situations requiring judgment, such as the probability of loan default.
Expert systems
218
A network that is similar to an intranet but is designed for customers, external partners, or suppliers.
Extranet
219
Components that have redundancies in hardware or software to allow continued operations if a system fails.
Fault-tolerant components
220
In a database, a business object such as a name or an asset.
Field
221
A type of control that involves a check to see if information in an entry field is complete.
Field check
222
In a database, a collection of related records.
File
223
Allows transfer of large files between computers on a network or the Internet.
File Transfer Protocol (FTP)
224
A hardware/software combination that routes all communications to or from the outside world through it, blocking unauthorized traffic.
Firewall
225
A type of control that checks to see that data is entered in an acceptable format.
Format check
226
Networking hardware that connects networks with dissimilar architectures.
Gateway
227
A type of firewall that stops traffic flowing to a specific application such as File Transfer Protocol.
Gateway firewall
228
Entity-level IT controls that applies generally to the IT environment or overall mix of systems, networks, data, people, and processes.
General control
229
Software that functions at the operating system kernel level to detect and block abnormal application behavior before it executes.
Host IPS (HIPS)
230
Regular and encrypted versions of the communications standard for Internet message formatting and transmission.
HTTP/HTTPS (Hypertext Transfer Protocol/Secure HTTP)
231
In terms of networking hardware, a port switching communications device.
Hub
232
The illegal use of sensitive information to impersonate an individual over computer networks in order to defraud the person or commit a crime without the perpetrator's true identity being known.
Identity theft
233
The risk that inaccurate information is used to make a business decision.
Information risk
234
A type of control intended to prevent computer errors by controlling data as it manually or electronically enters the system.
Input controls
235
A type of control that tracks all read-only access to records.
Inquiry log
236
A network of networks that have devoted a portion of their processing power and data to public use.
Internet
237
A series of high-capacity trunk lines owned and operated by network service providers (e.g., long-distance telephone companies or governments).
Internet backbone
238
Numeric address for a specific computer located on the Internet, e.g., 128.6.13.42.
Internet protocol (IP) address
239
An organization that provides connection to the Internet via a TCP/IP (Transmission Control Protocol/Internet Protocol) connection or provides network services (IP network).
Internet service provider (ISP)
240
An internal network for employees built using thin-client tools, standards, and protocols of the World Wide Web and the Internet.
Intranet
241
In a database, the field used to identify an entity, such as employee number.
Key field
242
A type of control that requires data to be entered twice, by different persons if possible, and highlights any differences.
Keystroke verification
243
A type of computer network for a limited geographical area such as a building.
Local-area network (LAN)
244
A large computer capable of supporting massive inputs and outputs and many concurrent users.
Mainframe computer
245
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
246
Type of processing that is halfway between batch and real-time processing. Creates real-time entries that are posted to a temporary memo file (which allows the updated information to be viewed); at a designated time the memo file is batch-processed to update the master file.
Memo posting
247
Networking hardware that combines multiple channels into a single channel, such as multiple phone lines sharing a single physical phone line.
Multiplexer
248
Used by firewalls with packet filtering and stateful inspection to hide the internal host computer IP addresses from sniffer utilities.
Network address translation (NAT)
249
Hardware and software systems on a network that analyze incoming packet content, dropping malicious packets.
Network IPS (NIPS)
250
Software that allows multiple perspectives for a set of data to be analyzed.
Online analytical processing (OLAP)
251
A method of defining how messages should be sent through a network so that unrelated products can work together.
Open Systems Interconnection (OSI) reference model
252
The software interface between the hardware and the applications and end user.
Operating system (O/S)
253
Process or transaction-level controls that find errors and verify the accuracy, completeness and validity of output data after processing is complete.
Output controls
254
A general term describing a logical grouping of data passing through network layers.
Packet
255
A type of firewall that compares source and destination addresses to an allowed list, examining headers and other fields in packets of data.
Packet filtering
256
The installation of released bug fixes to applications that are already in production.
Patch management
257
A type of computer network that is a direct connection between two computers.
Peer-to-peer network
258
The means of preventing access to an asset such as locks and/or key cards preventing access to a building, to data centers, and to key operational areas.
Physical access controls
259
In terms of networking hardware, a physical connection point to a device.
Port
260
A type of proactive control that deters undesirable events from occurring.
Preventive control
261
In a database, a unique key field number (i.e., a proper noun) used to identify a specific entity.
Primary key
262
An encryption method in which a sender creates an encryption key and sends it to a trusted receiver, who can use it to decrypt all messages in that session.
Private key encryption
263
Automated error checks built into computer processing as well as segregation of duties such as controlling programmers' access to files and records. They check that data processing tasks are accurate, complete, and valid.
Processing controls
264
An encryption method in which two keys are created, private and public. The sender places the public key in a directory or an application automatically applies it to lock sent data; to decrypt the data, the private key must be used.
Public key encryption
265
In a database, a logical grouping of fields.
Record
266
A hardware control in which each transmitted data element receives an additional bit (character) of data mathematically related to the data; abnormal changes will void the mathematical relationship.
Redundant character check
267
A database management system that is arranged into two-dimensional files called tables, with links between tables that share a common attribute.
Relational database
268
A network topology in which the network is arranged in a circle, so two paths for data are available.
Ring network
269
In terms of networking hardware, an intelligent processor that networks devices using protocols.
Router
270
The overall rules for a database.
Schema
271
The processes an organization puts into place so that security controls and expenditures are fully commensurate with the risks to which the organization is exposed.
Security risk management
272
A powerful computer with high bandwidth dedicated to a specific task such as providing access to files or managing the common application needs of an organization.
Server
273
A software system design that allows for sharing of Web services as needed; a service consumer gets Web services from various service providers.
Service-oriented architecture (SOA)
274
A contract between an organization and a software vendor specifying terms of use.
Software license agreement
275
Making illegal duplicate copies of software or installation of software beyond what is allowed in a license agreement.
Software piracy
276
Unsolicited bulk e-mail.
Spam
277
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
278
A type of firewall that enhances packet filtering by monitoring packet flows in general.
Stateful inspection
279
Process or transaction-level controls that must be in place for management and governance controls to be effective. They are usually specific to a given application but may also control larger technical processes such as system access rights.
Technical controls
280
The combination of transfer protocol, domain name, directory path, and document name.
Uniform Resource Locator (URL)
281
A secure method of connecting two points on the Internet, often run by an Internet service providers.
Virtual private network (VPN)
282
Malicious code that attaches itself to storage media, documents, or executable files and is spread when the files are shared with others.
Virus
283
Use open Internet protocols and standards to create stand-alone, modular software called services that are capable of describing themselves and integrating with other similar services.
Web services
284
A computer network made up of local-area networks over a large area (e.g., nation or world) using multiple transmission media.
Wide-area network (WAN)
285
Self-replicating malicious software that can disrupt networks or computers.
Worm
286
A process designed to provide reasonable assurance regarding the achievement of objectives in the categories of effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations.
Internal control
287
A method of inventory costing in which all variable and fixed manufacturing costs are included as inventoriable costs; thus inventory "absorbs" all manufacturing costs.
Absorption costing OR Full costing
288
A record of transactions that fit within a specific category.
Account
289
A capital budgeting method that measures the return on a project in terms of net operating income.
Accounting rate of return (ARR) method
290
An accounting system that records transactions as they occur, recognizing revenue when earned and expenses when incurred, regardless of when the cash is actually paid.
Accrual basis accounting
291
Either accrued revenues, which are earned revenues yet to be received as cash or recorded, or accrued expenses, which are incurred but unpaid expenses yet to be recorded.
Accruals
292
Unpaid expenses that accrue as a liability until paid, including salaries, rents, etc.
Accrued expenses
293
Costing systems that accumulate costs and assign them to a particular cost object such as a product or service.
Accumulation costing systems
294
Any type of action, work, or movement performed within an entity.
Activity
295
A logical grouping of activities, actions, movements, or sequences of work.
Activity center
296
A measurement of the amount of an activity used by a cost object.
Activity cost driver
297
A method of assigning costs to products, services, and customers based on the consumption of resources caused by activities.
Activity-based costing (ABC)
298
A cost measurement system that records the actual costs incurred for direct materials, direct labor, and overhead (by allocating actual amounts).
Actual costing system
299
The historical costs paid for goods or services.
Actual costs
300
Any tax for which the tax base is the value of a good, service, or property.
Ad valorem tax
301
An account that increases an asset, liability, or equity account, for example, premium on bonds payable.
Adjunct account
302
Assigning costs to a cost object.
Allocation
303
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 OR Cost driver
304
A type of review that examines relationships among information.
Analytical auditing OR Analytical review
305
A security that requires periodic payments in equal amounts per equal length periods and in which the interest is compounded over the same interval.
Annuity
306
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
307
A theory that states that multiple factors (rather than just one factor, beta) affect a security's return, such as unexpected earnings announcements or a change in interest rates.
Arbitrage pricing theory
308
Resources obtained or controlled by an organization as a result of past transactions or events that will probably result in future economic benefits to the organization.
Assets
309
A financial statement that shows what an organization owns and owes and where the money for the ownership originated.
Balance sheet
310
A schedule to explain any differences between a bank statement and cash on the books.
Bank reconciliation
311
A promise to pay a sum of cash at a set maturity rate plus a specific rate of periodic interest on the face value.
Bond indenture
312
The output level at which total revenues and total costs are equal.
Break-even point
313
A type of merger in which operations of two or more organizations are brought under common control.
Business combination
314
Bonds that the issuer can call and retire before maturity, such as during periods of high interest rates.
Callable bonds
315
Tax levied on the profit released upon the sale of a capital asset.
Capital gains tax
316
The par value of issued shares of stock.
Capital stock
317
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
318
Bank-issued time deposits for large sums with a fixed maturity; can be negotiable or nonnegotiable.
Certificates of deposit (CDs)
319
The practice of inflating sales figures by forcing more products through a distribution channel than the channel can actually sell.
Channel stuffing
320
The process of reducing all temporary or nominal accounts to zero so they are ready to be used in the next period.
Closing
321
Unsecured promissory notes issued by nonfinancial corporations and bank holding companies.
Commercial paper (CP)
322
The default classification for an organization's public shares granting a portion of ownership.
Common stock
323
Minimum balance requirements set by banks as partial compensation for their services.
Compensating balances
324
Prudence and adequate consideration of the risks and uncertainty in business situations when presented with situations that require judgment.
Conservatism
325
Existing situations or circumstances with an uncertain potential for gain or loss; tied to certain future events that may or may not occur.
Contingencies
326
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
327
A 12-to 18-month budget system that rolls forward one month (or quarter) as the current month (or quarter) is completed.
Continuous budgeting
328
A type of account that reduces an asset, liability, or equity account, such as discount on bonds payable.
Contra account
329
The amount remaining from sales revenue after variable expenses are deducted.
Contribution margin
330
Government protection granted to authors and artists of all types.
Copyright
331
Any resource that must be given up to obtain some objective.
Cost
332
Any object that can have a cost applied to it and can be used to determine how much a particular thing or activity costs.
Cost object
333
A budget that includes the total and per unit production cost for a period.
Cost of goods sold budget
334
A revenue deferral method that defers all profit recognition until cash collections exceed cost of goods sold.
Cost recovery method
335
The risk that the other party to a transaction will not fulfill their obligations; includes settlement risk and credit risk.
Counterparty risk
336
Cash and cash equivalents and assets held for sale or expected to be realized in the current operating cycle or within one year of the balance sheet date.
Current assets
337
Liabilities that are expected to be settled within the normal operating cycle or one year of the balance sheet date.
Current liabilities
338
A measure of an organization's potential for paying down current liabilities; a larger number indicates more assets in relation to debt and therefore greater ability to pay holders of short-term debt.
Current ratio
339
Data regarding customers, such as customer lists and contracts with customers.
Customer intangibles
340
Bonds that have no collateral (are unsecured).
Debenture bonds
341
The ratio of all an organization's debts to all of its assets; provides a general measure of ability to repay creditors.
Debt ratio
342
A ratio that measures an organization's ability to cover long-term liabilities from owners' equity.
Debt to equity ratio
343
The risk that a lender will not recoup the interest and/or principal when payments on debt become due.
Default risk
344
A type of pension plan in which the employer promises a specific level of benefits starting at retirement.
Defined benefit plan
345
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
346
A report that tracks the number of units moving through a department, provides a computation of unit costs, and shows how costs were charged to that department.
Departmental production report
347
An asset's original cost less its salvage value.
Depreciable base
348
A method of allocating the cost of tangible assets over the periods of expected use.
Depreciation
349
Contracts requiring one party to pay another party some amount based on an underlying price or value.
Derivative instruments
350
The increase or decrease in costs as a result of one more or one less unit of output.
Differential costs OR Incremental costs
351
A method of inventory costing in which all variable manufacturing costs are included as inventoriable costs except for fixed manufacturing costs, which are treated as costs of the period in which they are incurred.
Direct costing OR Variable costing
352
Any costs that can be easily and accurately traced to a cost object (usually direct labor and direct materials).
Direct costs
353
A type of lease in which the lessee uses the lease to finance the purchase of an asset.
Direct financing lease
354
A type of budget that can help an organization plan production processes to smooth out production and keep a consistent workforce size throughout the year.
Direct labor budget
355
A type of budget that determines the required materials and the quality level of the materials used to meet production.
Direct materials budget
356
A type of budget that is concerned with direct purchases of material components and finished goods.
Direct materials purchase budget
357
A type of budget that specifies the material components and the cost of the materials in the direct materials budget.
Direct materials usage budget
358
A method of estimating the stock value of constantly growing dividends that assumes that the dividend will grow at a constant rate g, based either on historical growth rates or on an analyst's forecasts.
Dividend growth model
359
An accounting system in which each transaction is recorded in at least two places a debit to one account and a credit to another account.
Dual-entry accounting
360
The ratio of total earnings to number of shares outstanding; a commonly used measure of a company's value to investors.
Earnings per share
361
Any entity that has separately identifiable accounting and accountability; could be an individual, type of corporation, or business unit.
Economic entity
362
The risk that fluctuations in exchange rates will affect the future cash flows or value of an organization.
Economic exposure
363
Determined by deducting the weighted average cost of capital from after-tax net income plus interest expense.
Economic value added (EVA)
364
The residual ownership interest in an organization's assets after deducting all of its liabilities.
Equity (shareholders' equity or net assets)
365
A measure of work done on partially completed units expressed in terms of how many completed units could have been created with the same amount of work in the period under consideration.
Equivalent unit (EU)
366
The volatility of exchange rates between an organization's primary currency and any currencies used by its subsidiaries and trading partners.
Exchange rate risk
367
Securities traded on an organized exchange with standardized contracts.
Exchange-traded securities
368
Depletion or outflows of assets and/or incurrence of liabilities resulting from an organization's production or delivery of goods or services as part of its primary ongoing operations.
Expenses
369
The amount of a bond owed at maturity.
Face value
370
The amount an asset could be acquired for (or sold) or a liability incurred (or settled), assuming willing parties that are not involved in a liquidation.
Fair market value OR Fair value
371
An independent, nonprofit group under authority of the US Securities and Exchange Commission that sets accounting standards.
Financial Accounting Standards Board (FASB)
372
The ability of an organization to respond to unexpected opportunities by changing amounts and timing of cash flows.
Financial flexibility
373
Cash, ownership interests, and rights or obligations set by contract to receive or remit cash or other financial instruments.
Financial instruments
374
The use of fixed interest in the form of debt or preferred equity stock with the expectation of earning a greater return than the cost of the fixed interest.
Financial leverage OR Trading on the equity
375
Any lease that transfers substantially all of the risks and rewards of owning an asset, whether title is or is not eventually transferred.
Financing lease
376
Bonds secured by real estate.
First mortgage bonds OR Mortgage bonds
377
An accounting assumption that the oldest goods are used or sold first; calculates the unit cost using only the costs incurred and work performed during the current accounting period.
First-in, first-out (FIFO) inventory valuation method
378
A government's use of taxes and spending to achieve its macroeconomic goals.
Fiscal policy
379
Portions of the total cost that remain constant regardless of changes in the level of activity over the relevant range.
Fixed costs
380
An over-the-counter contract between a buyer and a seller who agree today on a price and delivery date for the future.
Forward
381
An agreement to buy foreign currency in the future at a price determined by the forward market, often as a fair value hedge against the cash flow variability from changes in exchange rates.
Forward exchange contract
382
Binding contracts that fix the price of an asset in advance and give the buyer the risks of asset ownership at a fraction of the asset's cost; usually settled in cash prior to the settlement date.
Forward-type contracts
383
A principle that recognizes that statement preparers must make compromises between a level of detail sufficient to help users with their decisions while condensing that information enough to keep it understandable.
Full disclosure principle
384
The currency of a subsidiary's primary economic environment.
Functional currency
385
The value of an investment at a particular date in the future assuming that compound interest is applied.
Future value
386
Forwards traded on an established exchange or its clearinghouse.
Futures
387
The primary ledger for an organization, containing all asset, liability, equity, revenue, and expense accounts.
General ledger
388
The excess of the price paid for a subsidiary over the fair value of the subsidiary's net assets.
Goodwill
389
Bonds issued by government entities; repaid either through general tax revenues (general obligation bonds) or through revenues of the item financed (revenue bonds).
Government bonds
390
The money remaining from sales revenues after deductions for the cost of goods sold.
Gross profit
391
The ratio of gross profit (or net sales minus cost of goods sold) to sales.
Gross profit margin
392
The party in a derivative transaction who is attempting to reduce an underlying business risk (usually loss of profitability).
Hedger
393
The principle that using the values actually paid or received is more reliable than estimates of current value.
Historical cost
394
A combination of traditional debt or equity financing with an embedded derivative, such as a convertible bond or convertible preferred stock.
Hybrid instruments
395
Accounts that are restricted as to what cash in the account can be used for, such as for clearing large amounts of checks or for specific disbursements such as payroll, dividends, or travel expenses.
Imprest accounts
396
Bonds that pay interest only when the organization has profits.
Income bonds
397
A summary of the profitability or success of an organization over a period of time, such as a year.
Income statement
398
Any costs that are related to a cost object but cannot be easily and accurately traced to the product (such as overhead).
Indirect costs
399
Bonds issued by tax-exempt state or local governments to finance public projects.
Industrial revenue bonds
400
A revenue deferral method that recognizes revenue as cash is collected from prior sales; used for sales on installment where title for the goods is held until the final payment is collected.
Installment sales method
401
Assets that have no physical substance; exclude financial instruments by definition.
Intangibles
402
The rate of return promised by an investment project over its useful life; takes into account the opportunity cost of projects as well as the time value of money.
Internal rate of return (IRR)
403
Those costs associated with the manufacture of goods or the provision of services.
Inventoriable costs OR Manufacturing costs OR Product costs
404
A costing system that assigns costs to a specific job (a distinct unit, batch, or lot of a product or service).
Job costing OR Job-order costing
405
A budgeting method that incorporates continuous improvement by focusing on planned future operating processes rather than current operating practices.
Kaizen budget
406
An accounting assumption that the newest purchases are used or sold first; ending inventory consists of the oldest purchases, including purchases possibly made years ago, so this method undervalues held inventory, assuming inflation.
Last-in, first-out (LIFO) inventory valuation method
407
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
408
Bank-issued documents that guarantee payment of an amount given that specified conditions are met.
Letters of credit (L/Cs)
409
Direct financing leases where there is an intermediary between the lessor and the lessee (long-term creditor).
Leveraged leases
410
A cost management method that considers the entire cost life cycle of a product or service.
Life-cycle costing
411
Dividends that are paid as a return of the stockholders' investment rather than from retained earnings (e.g., a liquidation).
Liquidating dividends
412
An organization's ability to pay its current and future obligations efficiently and on time without undue hardship. They measure an organization?s solvency by comparing assets to liabilities.
Liquidity
413
Any liabilities not qualifying as current.
Long-term liabilities
414
Decreases in net assets (equity) due to incidental or peripheral transactions except those resulting from investments by or distributions to owners.
Losses
415
An inventory valuation method in which cost is the original cost and market refers to the market-determined cost to reproduce or replace the item, the lower of which becomes the new value.
Lower of cost or market (LCM) \*NOT multi-term
416
A type of budget that includes all production costs other than direct materials and direct labor.
Manufacturing overhead budget OR Overhead budget
417
The change in total cost divided by the change in quantity, or the extra cost of one more output unit.
Marginal cost
418
The amount of money an organization can raise before increasing the cost of capital.
Marginal cost of capital
419
A transfer pricing model that sets the internal transfer price for a good or service at the going market price.
Market price model
420
An accounting principle that states that when practical to do so, expenses should be recognized in the period in which the corresponding revenues are recognized.
Matching principle
421
A threshold level above which items would make a difference to a decision-maker (material) and below which the items are insignificant (immaterial).
Materiality
422
A method of mitigating risks by matching the maturities of liabilities to the maturities of assets.
Maturity matching
423
A type of budget that shows the amount of merchandise an organization needs to purchase during a period.
Merchandise purchases budget
424
A computer network of local-area networks for a city, campus, or other medium-sized area.
Metropolitan-area network (MAN)
425
Theft of a material amount of an organization's assets.
Misappropriation of assets
426
A type of risk that involves having no model for monitoring or identifying risk levels.
Model risk
427
Short-term, highly liquid instruments issued by a borrower who has outstanding credit.
Money market instruments
428
Notes issued by local or state governments; can be exempt from some taxes and are liquid but not risk-free.
Municipal notes
429
A transfer pricing model that sets the transfer price through negotiation between the buyer and the seller (managers of different business units).
Negotiated price model
430
Capital investment decision model in which the present value of a project's cash inflows is compared to the present value of the project's cash outflows; the difference between these values determines whether or not the project is an acceptable investment.
Net present value (NPV) method
431
The sales price of an asset, usually inventory, less the costs of completion and transportation or disposal that can be predicted within reason.
Net realizable value (NRV)
432
Making choices that are free from bias toward a predetermined result and that place the relevance and reliability of information above other concerns.
Neutrality
433
Any assets that do not qualify as current assets, including property, plant, and equipment.
Noncurrent assets
434
All the items that cannot be included in product costs and must be expensed in the period in which they occur.
Nonmanufacturing costs OR Operating expenses OR Period Costs
435
A cost measurement system that applies actual costs for direct materials and direct labor to a job, process, or other cost center and then uses a predetermined rate to assign overhead to cost centers.
Normal costing system
436
Legal loopholes that allow organizations to acquire funds without having to report a related liability on the balance sheet.
Off-balance-sheet accounting (OBSA) methods
437
Plans that identify needed resources and the way these resources will be acquired for all day-to-day activities of an organization, including sales and services, production, purchasing, marketing, and research and development.
Operating budgets
438
Short-term, pure rental agreements where the asset and the related liability remain off the lessee's books (they simply debit lease expense and credit cash).
Operating leases
439
The proportion of fixed costs used in the production of goods or services.
Operating leverage
440
A measure of operational efficiency as well as effective pricing and cost controls. Calculated as the proportion of net sales less cost of goods sold plus operating expenses (i.e., selling, general, and administrative expenses) to net sales.
Operating profit margin
441
A hybrid costing system that incorporates elements of job costing and process costing; assigns direct materials to each job or batch but assigns direct labor and overhead in a manner similar to process costing.
Operation costing
442
Type of derivative in which the buyer pays a premium or a percentage of the underlying asset's value to get the right, but not the obligation, to purchase or sell the asset over a particular period.
Option-type contract
443
An annuity that requires payment at the end of each period.
Ordinary annuity
444
Privately arranged trades (no exchange intermediary); allow customization to meet investors' needs.
Over-the-counter trading
445
(1) The amount of a bond owed at maturity; (2) a nominal price per share, set at issuance, usually at a low price to make it unlikely that a stock price will go below this value.
Par value
446
An association between two or more persons or corporations to be co-owners in a business for profit, such as a law firm.
Partnership (business type)
447
The exclusive right to sell, use, or manufacture something for a period of 20 years.
Patent
448
A capital investment decision model that focuses on the payback period.
Payback method
449
The time required for an organization to recover its original investment in a project.
Payback period
450
Tax that is levied directly on wages and salaries.
Payroll tax
451
Deferred employee compensation to be paid during retirement.
Pension
452
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
453
The use of debt contracts that use money that the organization doesn't have; occurs because derivatives require little or no money up front.
Portfolio leverage risk
454
A theory that states that as most financial assets are held in portfolios, measuring portfolio risk and finding the value of the portfolio are more important than individual asset risks and returns.
Portfolio theory
455
A control that involves preparing a log of all checks to be disbursed and sending it to the bank; the bank then pays only items that reconcile.
Positive pay
456
A balance that is prepared after closing to show that debits and credits of the real accounts (assets, liabilities, and shareholders' equity) are equal.
Post-close trial balance
457
To record an item from the journal into the general ledger, including summarizing and classifying the items.
Posting
458
Stock that has both debt and equity qualities; gives preference in liquidation and has a fixed but optional dividend.
Preferred stock
459
Either prepaid expenses, which are cash paid for goods or services prior to their consumption and treated as assets, or unearned revenues, which are cash received from customers as prepayment for goods or services and treated as liabilities.
Prepayments
460
In standard costing, the amount that should be paid for the quantity of input to be used.
Price standard
461
A costing system that accumulates product or service costs by process or department and then assigns them to a large number of nearly identical products by dividing the total costs by the total number of units produced.
Process costing system
462
The process of accumulating, classifying, and assigning direct materials, direct labor, and factory overhead costs to products and services.
Product costing
463
The plan for acquiring resources and combining them to meet sales goals and maintain a specific level of inventory.
Production budget
464
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
465
A type of dividend paid in the form of property, investments, etc., accounted for at the fair value of the assets given.
Property dividends
466
A tax based on the value of taxable property, including residential housing, farms, factories, and business equipment.
Property tax
467
In standard costing, the amount of input that should be used per unit of output.
Quantity standard
468
A ratio that is similar to the current ratio but eliminates inventory, which is considered the least liquid portion of current assets and therefore the least available for reducing current debts.
Quick ratio
469
Describes assets that can be readily converted to cash without significant extra expense through sale in an active market at prices that can be easily determined.
Realizable
470
Describes assets such as goods or services that are exchanged for cash or claims to cash.
Realized
471
A type of processing in which a record is processed as soon as it is submitted.
Real-time processing
472
To record revenue as a journal entry.
Recognize
473
Costs yet to be incurred that differ between alternatives.
Relevant costs
474
The range of activity within which the assumptions about variable and fixed costs are valid.
Relevant range
475
A measure of the neutrality of the sources of information, faith that the information represents what it purports to represent, and its independent verifiability.
Reliability
476
The currency in which a parent company presents its financial statements.
Reporting currency
477
The assurance that descriptions of events and financial transactions correspond closely to what occurred in reality.
Representational faithfulness
478
The sale of product or inventory with an agreement to buy back the goods in the future; (2) a type of money market instrument in which a securities dealer issues a government security, agreeing to repurchase it on a specific date.
Repurchase agreement
479
A methodical process or search designed to discover new knowledge.
Research
480
An economic element applied or used to perform activities (such as salaries and materials).
Resource
481
A measurement of the amount of resources consumed by an activity.
Resource cost driver
482
The process of recognizing subunits (responsibility centers) within an organization, assigning responsibilities to the managers of those subunits, and evaluating the performance of those managers.
Responsibility accounting
483
Any portion of an organization in which the manager is given responsibility for costs, profits, revenues, or investments; can be a single individual, a department, a functional area, or a division.
Responsibility center
484
The accumulated net incomes (losses) that have been retained in an organization.
Retained earnings OR Undistributed earnings
485
Enhancements or inflows of assets and/or settlements of liabilities generated when an organization makes or delivers goods or services as part of its primary ongoing operations.
Revenues
486
A 12- to 18-month budget system that rolls forward one month (or quarter) as the current month (or quarter) is completed.
Rolling budget
487
A projection of expected sales in units and expected selling prices.
Sales budget
488
A percentage of the amount paid for some purchases of goods and services.
Sales tax
489
The estimated value of an asset if sold at the end of its depreciation period or service life.
Salvage value
490
An asset-backed security that makes a pool of assets into a type of mutual fund by selling shares in the pooled principal and interest payments.
Securitization
491
A type of budget that includes nonmanufacturing expenses.
Selling and administrative expenses budget
492
Bonds that have staggered maturity dates.
Serial bonds
493
A liability that accrues interest expense based on a settlement rate determined by actuaries, reflecting the interest rate needed to settle the assets if the plan were terminated.
Service cost
494
An inventory cost flow method in which each specific item in inventory held or sold is tracked separately; most often used for special order or low-volume, high-cost goods.
Specific identification method
495
The counterparty that accepts the opposite position from the hedger in a derivative transaction, taking on higher market risk with the expectation of greater returns.
Speculator
496
A cost measurement system in which costs are assigned to products using quantity and price standards for direct materials, direct labor, and overhead using a predetermined (standard) rate.
Standard costing system
497
A financial statement used to show cash levels as of two moments in time the beginning of the period and the end.
Statement of cash flows
498
A financial statement that starts with the balances from the end of the prior period and shows changes due to net income (loss) and dividends for the period or any new issuances or repurchases of stock.
Statement of shareholders' equity
499
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
500
Bonds that have a lesser claim to cash in a default situation than other bonds.
Subordinate bonds
