FC upload ms-dos II Flashcards
(130 cards)
1
Q
Events that occur after the balance sheet date (usually the end of the fiscal year) but before the financial statement issuance date; they should be disclosed if material (i.e., useful to users), such as sale of a plant.
A
Subsequent events
2
Q
Any costs that have already been incurred and that cannot be changed by any decision made now or in the future.
A
Sunk costs
3
Q
An over-the-counter (possibly dealer-orchestrated) exchange or swap between two counterparties of required payment streams for a specific time period.
A
Swap
4
Q
An issue of bonds that all have the same maturity date.
A
Term bonds
5
Q
Loans with floating or fixed interest and a fixed maturity.
A
Term loans
6
Q
The concept that money received today is worth more than money received tomorrow because the money could be invested to earn a return greater than the original investment.
A
Time value of money
7
Q
The concept that information must be available at the time the decisions need to be made or it will be of no value.
A
Timeliness
8
Q
A measure of an organization’s ability to service all of its liabilities; the number of times a company can cover fixed obligations with earnings before interest and taxes (EBIT).
A
Times interest earned
9
Q
The financing advanced to a buyer to facilitate sales; results in an account receivable.
A
Trade credit
10
Q
The practice of manufacturers inducing their wholesalers to carry more inventory than they can reasonably sell.
A
Trade loading
11
Q
Symbols or words that distinguish an organization or product.
A
Trade names OR Trademarks
12
Q
The risk of poorly trained investors making poor choices.
A
Trader risk
13
Q
A system for pricing products or services that are transferred from one organizational subunit to another within the same organization.
A
Transfer pricing
14
Q
The risk that fluctuations in exchange rates will affect reported income.
A
Translation exposure
15
Q
The most common money market instrument; government securities that are highly liquid with an active secondary market and that mature in a year or less.
A
Treasury bills (T-bills)
16
Q
Stock that has been repurchased by the issuing organization, reducing both assets and stockholders’ equity.
A
Treasury stock
17
Q
A tax that is collected for a particular need, such as a gas tax levied to maintain roads.
A
Use tax
18
Q
A ratio used as a prospecting tool to determine the maximum loss over a future period of time given an assigned level of probability.
A
Value at risk
19
Q
A tax that applies the equivalent of a sales tax to every operation that creates value.
A
Value-added tax (VAT)
20
Q
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.
A
Variable cost model
21
Q
Costs that rise and fall as a firm’s output level rises and falls.
A
Variable costs
22
Q
The extent to which a high degree of consensus can be formed between independent measurers when using the same techniques.
A
Verifiability
23
Q
The proportion of debt used in an organization times the after-tax cost of debt, plus the proportion of equity used times the cost of equity.
A
Weighted average cost of capital (WACC)
24
Q
A method for calculating the equivalent units of production for a department that uses the number of units transferred to the next department or to finished goods plus the equivalent units in the department’s ending WIP inventory.
A
Weighted average method
25
The incremental cost required to surpass the prior marginal cost of capital break point.
Weighted marginal cost of capital
26
Paper or electronic documents arranged in columnar format for accumulating and recording adjusting entries when preparing financial statements.
Working papers
27
The combination of the present values of separate cash flows.
Yield-to-maturity (YTM)
28
Disbursement accounts that are maintained at a zero balance.
Zero-balance accounts (ZBAs)
29
A type of budget that starts with zero dollars allocated to budget items rather than making incremental changes to already existing allocations.
Zero-based budget
30
Bonds that carry zero or very low interest but are instead issued at a substantial discount from par value, resulting in amortized discounts (a tax deduction) to maturity and no payments until maturity.
Zero-coupon bonds
31
The accumulated resources of an organization raised through debt and equity financing and through the organization's productive efforts.
Capital
32
A specific cash amount levied on a particular commodity, such as liquor.
Excise tax
33
Falsified reporting designed to mislead financial statement users, usually by understating or overstating assets/liabilities or revenues/expenses.
Fraudulent financial reporting
34
Increases in net assets (equity) due to incidental or peripheral transactions except those resulting from investments by or distributions to owners.
Gains
35
The broad guidelines and specific procedures for accounting that have substantial authoritative support in the business community.
Generally Accepted Accounting Principles (GAAP)
36
A set of standards required or permitted for use by over 115 countries (including supranational bodies such as the European Commission), created to provide harmony among the regulations and accounting standards related to financial reporting across national boundaries.
International financial reporting standards (IFRS)
37
The potential benefits given up when one alternative is selected over another.
Opportunity costs
38
The way we interpret verbal or nonverbal messages by our own references.
Attribution
39
An activity in which a group generates new ideas; ideas are accepted without criticism and are then evaluated together.
Brainstorming
40
A regular pattern of expansion (recovery) and contraction (recession) in the level of economic activity.
Business cycle
41
Situation in which a country takes over the assets of an organization.
Confiscation
42
A measure of the collective changes in the cost of living for the average consumer household.
Consumer price index (CPI)
43
A licensing agreement whereby an organization manufactures for a foreign market.
Contract manufacturing
44
An increase in production costs that reduces supply and increases prices.
Cost-push inflation
45
An in-kind trade made between parties, typically through a trading organization.
Countertrade
46
The ability to understand and communicate effectively across cultures.
Cultural intelligence
47
A type of unemployment caused by ups and downs in the business cycle, specifically by a lack of demand for labor.
Cyclical unemployment
48
An increase in aggregate demand that pulls up the price level.
Demand-pull inflation
49
Attempt to eliminate or reduce the severity of recessions, or maintain growth at a noninflationary pace, through active fiscal and monetary policy.
Demand-side policies
50
The interest rate on loans that the Federal Reserve makes to commercial banks.
Discount rate
51
Accepting and respecting individual differences and being inclusive of such things as different backgrounds, values, beliefs, experiences, and skills.
Diversity
52
The situation in which a host county acquires more ownership of a foreign business.
Domestication
53
Situation in which an exporter sells a product for less in a foreign country than the product sells for in the domestic market; designed to drive competitors out of an industry and then allow the exporter to raise its prices to make a profit.
Dumping
54
An increase in real gross domestic product over a period of time.
Economic growth
55
Any economic statistic, such as the unemployment rate, GDP, or the inflation rate, that indicates how well the economy is doing and how well it will do in the future.
Economic indicator
56
In terms of international operations, an orientation in which the home country headquarters largely controls home country and host country operations.
Ethnocentric orientation
57
The bank that is responsible for monetary policy covering the 13 member countries of the European Union that have adopted the euro as their currency.
European Central Bank (ECB)
58
The executive body of the European Union.
European Commission (EC)
59
The European Union's financing institution; provides financing for capital investment furthering European Union policy objectives.
European Investment Bank (EIB)
60
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)
61
A customs and economic union of 27 (as of January 2012) independent, democratic European countries (called member states) supporting free trade and fixed exchange rates.
European Union (EU)
62
Payments a government makes to a business that exports goods; the firm will export the good up to the point at which the domestic price exceeds the foreign price by the amount of the subsidy.
Export subsidies
63
When an organization sells its products or services to foreign customers, either directly or indirectly through an intermediary.
Exporting
64
The situation in which a country takes over an organization's assets without adequate compensation.
Expropriation
65
The central banking system of the US; uses monetary policy to help the economy achieve full-employment GDP.
Federal Reserve System (the Fed)
66
A system in which the exchange rates for currencies are determined by market supply and demand as are the prices of other financial assets such as stocks and bonds.
Flexible exchange rate OR Floating exchange rate
67
Sets a minimum value for an adjustable interest rate.
Floor
68
A planning tool to identify forces for and against change to help make better decisions.
Force field analysis
69
A situation in which an international organization owns part or all of an operation in another country.
Foreign direct investment (FDI)
70
A type of license whereby use of an entire business is licensed.
Franchising
71
The absence of artificial barriers to trade among different nations.
Free trade
72
The amount of unemployment due to the normal workings of the labor market.
Frictional unemployment
73
An agreement that sets forth binding tariffs between member countries; generally means that the countries cannot raise their tariffs from the agreed-upon levels.
General Agreement on Tariffs and Trade (GATT)
74
In terms of international operations, an orientation in which there is strong interdependence between the home and host countries; the approach is to develop worldwide standards and objectives that serve both universal and local purposes.
Geocentric orientation
75
A strategy in which an organization can produce products or services anywhere from a global location.
Global strategy
76
The total market value of all goods and services produced in the economy in one year.
Gross domestic product (GDP)
77
When individuals say things indirectly and implicitly; reading between the lines is important because the words could have different meanings and some things may be left unsaid.
High-context language
78
The country where an organization's headquarters are.
Home country
79
A foreign country that an organization conducts business in.
Host country
80
The maximum amount of a good that may be imported to a country in a given time period.
Import quotas
81
When an organization buys products, supplies, or services from a foreign country.
Importing
82
The decrease in the purchasing power of money and the increase in the general price level for goods and services.
Inflation
83
The agreed-upon payment for use of resources.
Interest
84
Being able to conduct transactions within a firm; facilitates transfer of technology from one branch of the company to another without selling the technology.
Internalization
85
Situation in which the organizations in a strategic alliance form a separate entity.
International joint venture (IJV)
86
An international agency charged with promoting economic stability and preventing global depression by providing loans to usually stable countries during times of crisis.
International Monetary Fund (IMF)
87
A strategy in which an organization's home country controls the value chain at home but still produces and markets global products.
International strategy
88
Agreements between two separate organizations to accomplish a single project together.
Joint ventures
89
An innovative thinking process to challenge the status quo and generate unconventional alternatives.
Lateral thinking
90
An agreement between an organization and another party to, for example, use a technology or a patent.
Licensing
91
When individuals say things very directly and explicitly; the meaning is in the words they use and the specific situation is not as important to discern.
Low-context language
92
The science of economic concerns on a national level.
Macroeconomics
93
A system in which the currency rate normally fluctuates according to supply and demand but is also supported by currency interventions by central banks in order to stabilize or alter rates.
Managed floating exchange rate system
94
A strategy in which the organizations in host countries are subsidiaries with their own control of operations.
Multidomestic strategy OR Multilocal strategy
95
An organization that serves customers in various countries.
Multinational organization
96
A trade agreement that lowered trade barriers among the US, Mexico, and Canada.
North American Free Trade Agreement (NAFTA)
97
Quantities of foreign currencies held by the central bank of every nation.
Official reserves
98
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
99
The point at which economic activity reaches a temporary maximum.
Peak
100
Any government or political action that would harm a country's business environment.
Political risk
101
In terms of international operations, an orientation that gives much latitude to the host country to make decisions locally and direct operations.
Polycentric orientation
102
The cost of a product or service to the customer.
Price
103
A legal maximum on the price of a good or service.
Price ceiling
104
A legal minimum on the price of a good or service.
Price floor
105
The existence of barriers to free trade.
Protectionism
106
Study of perceptions of space and personal contact.
Proxemics
107
Government control of the quantity supplied of a specific item; used to ensure fair distribution of scarce resources.
Rationing
108
A period of at least six months after a peak and before a trough during which the economy declines as measured by gross domestic product.
Recession
109
A period characterized by an expansion in the economy during which employment and economic output increase.
Recovery
110
In terms of international operations, an orientation in which there is high coordination and communication within a specific region.
Regiocentric orientation
111
A strategy that combines aspects of the multinational, international, and multilocal strategies; focus is on producing regional products with a regional value chain.
Regional strategy
112
Regulations regarding the minimum amount of resources that banks must hold against deposits.
Reserve requirements
113
A process of developing several future alternatives, or scenarios, to help prepare for future uncertainties.
Scenario building
114
An assumption or generalization made about someone that is not reflective of the person.
Stereotype
115
Agreements between organizations from different countries to conduct business.
Strategic alliances
116
A type of unemployment that exists when there is enough demand to provide full employment but the types of demand don't match the available labor force.
Structural unemployment
117
Policies that address factors that will, over time, increase the potential of full-capacity output of the economy.
Supply-side policies
118
Excise taxes imposed on the imports of particular goods or services.
Tariffs
119
The way organizations are able to capitalize on the use of technology and expand research and development and other capabilities through global telecommunication networks.
Technoglobalism
120
The use or threat of violence for political reasons.
Terrorism
121
Corporations that span borders in their organizational structures; they play a significant role in world trade.
Transnational corporations (TNCs)
122
A strategy in which an organization's home and host countries are closely connected to operate on a worldwide basis.
Transnational strategy
123
A pricing agreement between two parties that allows a buyer or seller to trigger a particular pricing formula at the time of their choosing; a type of futures trading that allows the buyer and seller to protect themselves from anticipated price fluctuations.
Trigger pricing
124
A period during which economic output is at its lowest level following a recession or depression.
Trough
125
Measured by dividing the number of people actively seeking employment by the total workforce.
Unemployment
126
A situation in which firms voluntarily limit the amount of their exports to specific countries, generally to avoid more stringent trade barriers or the imposition of import quotas.
Voluntary export restrictions (VERs)
127
Situation in which an organization owns all of a foreign operation.
Wholly owned subsidiary
128
A group of five international organizations responsible for providing financing and advice to countries for economic development and elimination of poverty.
World Bank
129
An organization established by the General Agreement on Tariffs and Trade that administers trade agreements, provides a forum for negotiations, and handles disputes between trading partners.
World Trade Organization (WTO)
130
Special government auditing standards published by the US Comptroller General.
Yellow Book
