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Financial Terms | |
business intelligence (BI) system |
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Definition of business intelligence (BI) systembusiness intelligence (BI) systema formal process for gathering and analyzing information and producing intelligence to meet decision making needs; requires information about
Related Terms:Accelerated cost recovery system (ACRS)Schedule of depreciation rates allowed for tax purposes. AccountabilityThe process of satisfying stakeholders in the organization that managers have acted in the best interests of the stakeholders, a result of the stewardship function of managers, which takes place through accounting. Accounting systemA set of accounts that summarize the transactions of a business that have been recorded on source documents. Accumulation binA location in which components destined for the shop floor are actual cost systema valuation method that uses actual direct Adjusted EBITDAConventional earnings before interest, taxes, depreciation, and amortization (EbiTDA) revised to exclude the effects of mainly nonrecurring items of revenue or gain and expense or loss. ArbitrageThe simultaneous buying and selling of a security at two different prices in two different markets, ![]() ArbitrageThe purchase of securities on one market for immediate resale on ArbitrageTransactions designed to make a sure profit from inconsistent prices. Arbitrage-free option-pricing modelsYield curve option-pricing models. Arbitrage Pricing Theory (APT)An alternative model to the capital asset pricing model developed by ArbitrageursPeople who search for and exploit arbitrage opportunities. Asset/liability managementAlso called surplus management, the task of managing funds of a financial Attribute biasThe tendency of stocks preferred by the dividend discount model to share certain equity Automated storage/retrieval systemA racking system using automated systems Automatic StabilizerAny feature built into the economy that automatically cushions fluctuations. ![]() Availability floatChecks deposited by a company that have not yet been cleared. availability floatChecks already deposited that have not yet been cleared. Bank for International Settlements (BIS)An international bank headquartered in Basel, Switzerland, which Base probability of lossThe probability of not achieving a portfolio expected return. Basic business strategiesKey strategies a firm intends to pursue in carrying out its business plan. Biased expectations theoriesRelated: pure expectations theory. Bid-askedspread The difference between the bid and asked prices. Bid priceThis is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically BidderA firm or person that wants to buy a firm or security. Big BangThe term applied to the liberalization in 1986 of the London Stock Exchange in which trading was big bathA street-smart term that refers to the practice by many businesses Big BathA wholesale write-down of assets and accrual of liabilities in an effort to make the Big BoardA nickname for the New York Stock Exchange. Also known as The Exchange. More than 2,000 Bill and Hold PracticesProducts that have been sold with an explicit agreement that delivery Bill of exchangeGeneral term for a document demanding payment. Bill of ladingA contract between the exporter and a transportation company in which the latter agrees to Bill of materialsA listing of all the materials and quantities that go to make up a completed product. bill of materialsa document that contains information about Bill of materialsAn itemization of the parts and subassemblies required to create a Bill of materials (BOM)A listing of all parts and subassemblies required to produce one BinA storage area, typically a subdivision of a single level of a storage rack. Bin transferA transaction to move inventory from one storage bin to another. Binomial modelA method of pricing options or other equity derivatives in Binomial option pricing modelAn option pricing model in which the underlying asset can take on only two Breeder bill of materialsA bill of material that accounts for the generation and Building a binomial treeFor a binomial option model: plotting the two Business cycleRepetitive cycles of economic expansion and recession. Business CycleFluctuations of GDP around its long-run trend, consisting of recession, trough, expansion, and peak. Business Expansion InvestmentThe use of capital to create more money through the addition of fixed assets or through income producing vehicles. Business failureA business that has terminated with a loss to creditors. business process reengineering (BPR)the process of combining information technology to create new and more effective Business riskThe risk that the cash flow of an issuer will be impaired because of adverse economic business-value-added activityan activity that is necessary for the operation of the business but for which a customer would not want to pay Capital MobilityA situation in which assets can easily be purchased by foreigners. Cash management billVery short maturity bills that the Treasury occasionally sells because its cash charge-back systema system using transfer prices; see transfer Clearing House Automated Payments System (CHAPS)A computerized clearing system for sterling funds Clearing House Interbank Payments System (CHIPS)An international wire transfer system for high-value Combination matchingAlso called horizon matching, a variation of multiperiod immunization and cash Combination strategyA strategy in which a put and with the same strike price and expiration are either both Commercial Business Loan (Credit Insurance)An agreement between a creditor and a borrower, where the creditor has loaned an amount to the borrower for business purposes. Competitive biddingA securities offering process in which securities firms submit competing bids to the Contingent LiabilityAn obligation that is dependent on the occurrence or nonoccurrence of Contingent pension liabilityUnder ERISA, the firm is liable to the plan participants for up to 39% of the net ConvertibilityThe degree of freedom to exchange a currency without government restrictions or controls. cost control systema logical structure of formal and/or informal cost management system (CMS)a set of formal methods Cost Plus Estimated Earnings in Excess of BillingsRevenue recognized to date under the percentage-of-completion method in excess of amounts billed. Also known as unbilled accounts Covered interest arbitrageA portfolio manager invests dollars in an instrument denominated in a foreign Cumulative probability distributionA function that shows the probability that the random variable will Currency arbitrageTaking advantage of divergences in exchange rates in different money markets by Current liabilitiesAmount owed for salaries, interest, accounts payable and other debts due within 1 year. Current liabilitiesbills a company must pay within the next twelve months. Current liabilitiesAmounts due and payable by the business within a period of 12 months, e.g. bank overdraft, creditors and accruals. current liabilitiesCurrent means that these liabilities require payment in Current LiabilitiesDebts or other obligations coming due within a year. Current liabilityThis is typically the accounts payable, short-term notes payable, and DebitOne side of a journal entry, usually depicted as the left side. debitFunds which have been deducted from your account. The opposite of a debit is a credit. debit cardA card which enables you to directly access your bank account when paying for purchases. So instead of paying in cash or with a credit card, a debit card allows the specified amount of the purchase to be electronically debited, or withdrawn, from your bank account. See Interac Direct Payment for an explanation of the actual procedures that you follow at the point of sale (POS) terminal to use your debit card. debit memoA record of the funds which have been debited from your account. Deferred Tax LiabilityFuture tax obligation that results from the origination of a temporary Defined EBITDAA measure of EbiTDA that is outlined or defined in a debt or credit agreement. design for manufacturability (DFM)a process that is part of the project management of a new product; concerned with finding optimal solutions to minimizing product failures DisabilityInability to work due to injury or sickness. Disability InsuranceInsurance that pays you an ongoing income if you become disabled and are unable to pursue employment or business activities. There are limits to how much you can receive based on your pre-disability earnings. Rates will vary based on occupational duties and length of time in a particular industry. This kind of coverage has a waiting period before you can begin collecting benefits, usually 30, 60 or 90 days. The benefit paying period also varies from 2 years to age 65. A short waiting period will cost more that a longer waiting period. As well, a long benefit paying period will cost more than a short benefit paying period. Disability Insurance (Credit Insurance)Group Insurance designed to cover monthly obligations due to a borrower being unable to work due to sickness or injury. DLOM (discount for lack of marketability)an amount or percentage deducted from an equity interest to reflect lack of marketability. Du Pont systemA breakdown of ROE and ROA into component ratios. Due billAn instrument evidencing the obligation of a seller to deliver securities sold to the buyer. Dupont system of financial controlHighlights the fact that return on assets (ROA) can be expressed in terms earnings before interest and income tax (EBIT)A measure of profit that Earnings before interest and taxes (EBIT)A financial measure defined as revenues less cost of goods sold Earnings before interest and taxes (EBIT)The operating profit before deducting interest and tax. Earnings before interest, taxes, depreciation and amortization (EBITDA)The operating profit before deducting interest, tax, depreciation and amortization. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)An earningsbased measure that, for many, serves as a surrogate for cash flow. Actually consists of working EBITEarnings before interest and taxes. The measure often is used to gauge coverage of fixed charges. EBITAbbreviation for earnings before interest and taxes. EBITAEarnings before interest, taxes, and amortization expense. EBITDAEarnings before interest, taxes, depreciation, and amortization. EBITDA MarginEbiTDA divided by total sales or total revenue. EBITDAREarnings before interest, taxes, deprecation, amortization, and rents. Electronic Federal Tax Payment Systems (EFTPS)An electronic funds transfer system used by businesses to remit taxes to the government. 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