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Financial Terms | |
Disclaimer of opinion |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
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Definition of Disclaimer of opinionDisclaimer of opinionAn auditor's statement disclaiming any opinion regarding the company's financial
Related Terms:Clean opinionAn auditor's opinion reflecting an unqualified acceptance of a company's financial statements. Except for opinionAn auditor's opinion reflecting the fact that the auditor was unable to audit certain areas Opinion shoppingA practice prohibited by the SEC which involves attempts by a corporation to obtain Subject to opinionAn auditor's opinion reflecting acceptance of a company's financial statements subject to Clean FloatA flexible exchange rate system in which the government does not intervene. Clean priceBond price excluding accrued interest. Flat price (also clean price)The quoted newspaper price of a bond that does not include accrued interest. ![]() Abusive Earnings ManagementThe use of various forms of gimmickry to distort a company's true financial performance in order to achieve a desired result. Abusive Earnings ManagementA characterization used by the Securities and Exchange Accounting and Auditing Enforcement Release (AAER)Administrative proceedings or litigation releases that entail an accounting or auditing-related violation of the securities laws. Accumulated Other Comprehensive IncomeCumulative gains or losses reported in shareholders' activity-based management (ABM)a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received ADF (annuity discount factor)the present value of a finite stream of cash flows for every beginning $1 of cash flow. Adjusted Cash Flow Provided by Continuing OperationsCash flow provided by operating Amortization factorThe pool factor implied by the scheduled amortization assuming no prepayemts. Annuity factorPresent value of $1 paid for each of t periods. ![]() annuity factorPresent value of an annuity of $1 per period. Asset/liability managementAlso called surplus management, the task of managing funds of a financial Audit CommitteeA subcommittee of a company's board of directors assigned the responsibility Auditor's reportA section of an annual report containing the auditor's opinion about the veracity of the Banker's acceptanceA short-term credit investment created by a non-financial firm and guaranteed by a Bankers AcceptancesA bill of exchange, or draft, drawn by the borrower for payment on a specified date, and accepted by a chartered bank. Upon acceptance, the bill becomes, in effect, a postdated certified cheque. Blue-chip companyLarge and creditworthy company. Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit CommitteesA committee formed in response to SEC chairman Arthur Levitt's initiative to improve the financial Bottom-up equity management styleA management style that de-emphasizes the significance of economic Budgetary controlThe process of ensuring that actual financial results are in line with targets – see variance Cash flow from operationsA firm's net cash inflow resulting directly from its regular operations CASH-FLOW STATEMENTA statement that shows where a company’s cash came from and where it went for a period of time, such as a year. Cash Flow statementA financial report that shows the movement in cash for a business during an accounting period. CASH FLOWS FROM OPERATIONSA section on the cash-flow Stockholders’ equity statement that shows how much cash came into a company and how much went out during the normal course of business. Cash management billVery short maturity bills that the Treasury occasionally sells because its cash Certainty equivalentAn amount that would be accepted in lieu of a chance at a possible higher, but Certified Management Accountant (CMA)a professional designation in the area of management accounting that Changes in Financial PositionSources of funds internally provided from operations that alter a company's chief financial officer (CFO)Officer who oversees the treasurer and controller and sets overall financial strategy. common-size income statementIncome statement that presents items as a percentage of revenues. Common stock/other equityValue of outstanding common shares at par, plus accumulated retained Company AcquisitionsAssets acquired to create money. May include plant, machinery and equipment, shares of another company etc. company cost of capitalExpected rate of return demanded by investors in a company, determined by the average risk of the company’s assets and operations. Company-specific riskRelated: Unsystematic risk Companyspecific RiskSee asset-specific risk computer-aided manufacturing (CAM)the use of computers to control production processes through numerically computer integrated manufacturing (CIM)the integration of two or more flexible manufacturing systems through the use of a host computer and an information networking system Conditional BuyerOne of two parties to a conditional sale agreement, the other being the conditional seller. Conditional SaleA type of agreement to sell whereby a seller retains title to goods sold and delivered to a purchaser until full payment has been made. Conditional Sale AgreementAn agreement entered into between a conditional buyer and a conditional seller setting out the terms under which goods change hands. Conditional sales contractsSimilar to equipment trust certificates except that the lender is either the Conditional SellerOne of two parties to a conditional sale agreement, the other being the conditional buyer. Configuration auditA review of all engineering documentation used as the basis Configuration controlVerifying that a delivered product matches authorizing contract manufactureran external party that has been granted an outsourcing contract to produce a part or component for an entity Control50% of the outstanding votes plus one vote. Control accountAn account maintained in the general ledger that holds the balance without the detail. The detail is maintained in a subsidiary ledger. control charta graphical presentation of the results of a control premiumthe additional value inherent in the control interest as contrasted to a minority interest, which reflects its power of control controllable costa cost over which a manager has the ability to authorize incurrence or directly influence magnitude Controllable profitThe profit made by a division after deducting only those expenses that can be controlled by the controllable variancethe budget variance of the two variance approach to analyzing overhead variances Controlled disbursementA service that provides for a single presentation of checks each day (typically in Controlled foreign corporation (CFC)A foreign corporation whose voting stock is more than 50% owned ControllerThe corporate manager responsible for the firm's accounting activities. controllerthe chief accountant (in a corporation) who is responsible controllerOfficer responsible for budgeting, accounting, and auditing. controllingthe process of exerting managerial influence on Convention statementAn annual statement filed by a life insurance company in each state where it does Conversion factorsRules set by the Chicago Board of Trade for determining the invoice price of each Corporate financial managementThe application of financial principals within a corporation to create and Corporate financial planningfinancial planning conducted by a firm that encompasses preparation of both Cost company arrangementArrangement whereby the shareholders of a project receive output free of Cost controlThe process of either reducing costs while maintaining the same level of productivity or maintaining costs while increasing productivity. cost control systema logical structure of formal and/or informal cost management system (CMS)a set of formal methods cost of goods manufactured (CGM)the total cost of the Cost of manufactureThe cost of goods manufactured for subsequent sale. costs of financial distressCosts arising from bankruptcy or distorted business decisions before bankruptcy. Country financial riskThe ability of the national economy to generate enough foreign exchange to meet critical success factors (CSF)any item (such as quality, customer Cutoff controlA procedure for ensuring that transaction processing is completed De factoExisting in actual fact although not by official recognition. Demand Management PolicyFiscal or monetary policy designed to influence aggregate demand for goods and services. Depository Trust Company (DTC)DTC is a user-owned securities depository which accepts deposits of 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 Discontinued OperationsNet income and the gain or loss on disposal of a business segment whose assets and operations are clearly distinguishable from the other assets and operations of an entity. Discount factorPresent value of $1 received at a stated future date. discount factorPresent value of a $1 future payment. DLOC (discount for lack of control)an amount or percentage deducted from a pro rata share of the value of 100% of an equity interest in a business, to reflect the absence of some or all of the powers of control. Dupont system of financial controlHighlights the fact that return on assets (ROA) can be expressed in terms Earnings ManagementThe active manipulation of earnings toward a predetermined target. Eligible bankers' acceptancesIn the BA market, an acceptance may be referred to as eligible because it is Exchange controlsGovernmental restrictions on the purchase of foreign currencies by domestic citizens or External Financial StatementsCorporate financial statements that have been reported on by an external independent accountant. FactorA financial institution that buys a firm's accounts receivables and collects the debt. FactorAn agent who buys and sells goods on behalf of others for a commission. Factor analysisA statistical procedure that seeks to explain a certain phenomenon, such as the return on a Factor modelA way of decomposing the factors that influence a security's rate of return into common and Factor of ProductionA resource used to produce a good or service. The main macroeconomic factors of production are capital and labor. Factor portfolioA well-diversified portfolio constructed to have a beta of 1.0 on one factor and a beta of FactoringSale of a firm's accounts receivable to a financial institution known as a factor. FactoringThe sale of accounts receivable to a third party, with the third party bearing FactoringThe discounting, or sale at a discount, of receivables on a nonrecourse, notification FactoringType of financial service whereby a firm sells or transfers title to its accounts receivable to a factoring company, which then acts as principal, not as agent. Factory overheadAll the costs incurred during the manufacturing process, minus the Finance CompanyCompany engaged in making loans to individuals or businesses. Unlike a bank, it does not receive deposits from the public. Financial accountingThe production of financial statements, primarily for those interested parties who are external to the business. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |