W-X-Y-Z Accounting Definitions

Question 1

<p>Warrant</p>

Answer 1

<p>A certificate entitling the holder to buy a specified number of shares for a specified time for a specified price. (IMA)</p>

Question 2

<p>Warranty</p>

Answer 2

<p>A promise by a seller to correct, for a stated period of time, deficiencies in products sold. (IMA)</p>

Question 3

<p>Waste</p>

Answer 3

<p>The material that is left over after production is complete. It is simply unused and is now unusable materials. (HOCK)</p>

Question 4

<p>Weak-Form Efficiency</p>

Answer 4

<p>A market efficiency theory that says that market prices of securities reflect all historical information: price movements and trading volume, and that investors will not be able to "beat the market" by basing their analysis and strategy solely on past price movements. (HOCK)</p>

Question 5

<p>Weighted Average Cost of Capital (WACC)</p>

Answer 5

<p>An average representing the required return on all of a company's securities. Each source of capital, such as stocks, bonds, and other debt, is weighted in the calculation according to its percentage of the company's capital structure. (IMA)</p>

Question 6

<p>Weighted Average Standard Price Of The Actual Mix</p>

Answer 6

<p>The standard amount of how much one unit of the actual mix should have cost using the standard prices. (HOCK)</p>

Question 7

<p>Weighted Average Standard Price Of The Standard Mix</p>

Answer 7

<p>The standard amount of how much one unit of the standard mix should have cost using the standard prices. (HOCK)</p>

Question 8

<p>Weighted Moving Average</p>

Answer 8

<p>A method of calculating central tendency over time in an attempt to identify long-term trends. For each time period after the initial one, the earliest value is dropped from the calculation and the most recent one is added in, to make an average over the same length of time. More recent data points are weighted higher than earlier data points. (IMA)</p>

Question 9

<p>Whistleblower</p>

Answer 9

<p>Person who tells the public or someone in authority about alleged dishonest or illegal activities occurring within an organization. (IMA)</p>

Question 10

<p>White Knight Defense</p>

Answer 10

<p>A takeover defense in which the target company looks for another company to take them over. The target company will search for a company that they see as more favorable for them to be sold to. (HOCK)</p>

Question 11

<p>Work-in-Process Inventory</p>

Answer 11

<p>The costs incurred to date on products for which production has begun but has not been completed. (IMA)</p>

Question 12

<p>Working Capital</p>

Answer 12

<p>Current Assets less Current Liabilities. (Also called Net Working Capital.) (IMA)</p>

Question 13

<p>Worm</p>

Answer 13

<p>A program that replicates itself from system to system without the use of any host file. The difference between a worm and a virus is that the worm does not require the use of an infected host file, while the virus does require the spreading of an infected host file. (HOCK)</p>

Question 14

<p>Write-Off</p>

Answer 14

<p>Charging the cost of an asset to expense or to a loss account. (IMA)</p>

Question 15

<p>Yield</p>

Answer 15

<p>Income as a percentage of price. (IMA)</p>

Question 16

<p>Yield Curve</p>

Answer 16

<p>A graph illustrating the various rates at various maturities at any given moment. (HOCK)</p>

Question 17

<p>Yield Variance</p>

Answer 17

<p>The difference between the actual quantity of material used for a given amount of product and the standard quantity of the material required for that amount of product, priced at the standard cost per unit of material. (IMA)</p>

Question 18

<p>Zero Balance Account</p>

Answer 18

<p>A disbursement (checking) account that has a zero balance. As checks are submitted for payment, funds are transferred from another account to exactly cover the amount of the checks, generally on a daily basis. (IMA)</p>

Question 19

<p>Zero-Base Budgeting</p>

Answer 19

<p>A budgeting process in which the budget is prepared without any reference to, or use of, the current period's budget and the likely operating results for the current period. (HOCK)</p>

Question 20

<p>Zero-Based Budgeting</p>

Answer 20

<p>Preparing a budget from the ground up, as though the budget were being prepared for the first time. Alternative means of conducting activities and alternative budget amounts are evaluated. (IMA)</p>

Question 21

<p>Zero-Coupon Bonds</p>

Answer 21

<p>Bonds that do not pay any interest, but they sell at a price significantly less than the face value. The large discount on the sale of the bonds offsets the fact that there is no interest payment. (HOCK)</p>