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Financial Terms | |
Foreign Corrupt Practices Act (FCPA) |
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 Foreign Corrupt Practices Act (FCPA)Foreign Corrupt Practices Act (FCPA)a law passed by U.S. Congress in 1977 that makes it illegal for a U.S. company to engage in various “questionable” foreign payments and
Related Terms:Act of state doctrineThis doctrine says that a nation is sovereign within its own borders and its domestic ActiveA market in which there is much trading. Active portfolio strategyA strategy that uses available information and forecasting techniques to seek a activitya repetitive action performed in fulfillment of business functions activity analysisthe process of detailing the various repetitive actions that are performed in making a product or Activity-based budgetingA method of budgeting that develops budgets based on expected activities and cost drivers – see also activity-based costing. activity-based budgeting (ABB)planning approach applying activity drivers to estimate the levels and costs of activities necessary to provide the budgeted quantity and ![]() Activity-based costingA method of costing that uses cost pools to accumulate the cost of significant business activities and then assigns the costs from the cost pools to products or services based on cost drivers. activity based costing (ABC)A relatively new method advocated for the activity-based costing (ABC)a process using multiple cost drivers to predict and allocate costs to products and services; Activity-based costing (ABC)A cost allocation system that compiles costs and assigns 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 activity centera segment of the production or service activity drivera measure of the demands on activities and, Actual costThe actual expenditure made to acquire an asset, which includes the supplierinvoiced actual cost systema valuation method that uses actual direct ![]() ActualsThe physical commodity underlying a futures contract. Cash commodity, physical. ActuaryOne who uses statistical information to evaluate the probability of future events and prices insurance products. ADF (annuity discount factor)the present value of a finite stream of cash flows for every beginning $1 of cash flow. Allocation base A measure of activity or volume such as labourhours, machine hours or volume of production 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 activity ratiosRatios that measure how effectively the firm is managing its assets. Bill and Hold PracticesProducts that have been sold with an explicit agreement that delivery Bullet contractA guaranteed investment contract purchased with a single (one-shot) premium. Related: business-value-added activityan activity that is necessary for the operation of the business but for which a customer would not want to pay ![]() cash flow from operating activities, or cash flow from profitThis equals the cash inflow from sales during the period minus the cash Cash Flow Provided by Operating ActivitiesWith some exceptions, the cash effects of transactions Cash Flow Provided or Used from Financing ActivitiesCash receipts and payments involving Cash Flow Provided or Used from Investing ActivitiesCash receipts and payments involving CASH FLOWS FROM FINANCING ACTIVITIESA section on the cash-flow statement that shows how much cash a company raised by selling stocks or bonds this year and how much was paid out for cash dividends and other finance-related obligations. CASH FLOWS FROM INVESTING ACTIVITIESA section on the cashflow statement that shows how much cash came in and went out because of various investing activities like purchasing machinery. Cash settlement contractsFutures contracts, such as stock index futures, that settle for cash, not involving Cash transactionA transaction where exchange is immediate, as contrasted to a forward contract, which Characteristic lineThe market model applied to a single security. The slope of the line is a security's beta. Collection fractionsThe percentage of a given month's sales collected during the month of sale and each Completed-Contract MethodA contract accounting method that recognizes contract revenue 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 sales contractsSimilar to equipment trust certificates except that the lender is either the Consolidated Omnibus Budget Reconciliation Act (COBRA)A federal act Consumer Credit Protection ActA federal act specifying the proportion of ContractA term of reference describing a unit of trading for a financial or commodity future. Also, the actual ContractA formal written statement of the rights and obligations of each party to a transaction. Contract AccountingMethod of accounting for sales or service agreements where completion contract manufactureran external party that has been granted an outsourcing contract to produce a part or component for an entity Contract monthThe month in which futures contracts may be satisfied by making or accepting a delivery. contract vendoran external party that has been granted an Contract Work Hours and Safety Standards ActA federal act requiring federal contractors to pay overtime for hours worked exceeding 40 per week. Controlled foreign corporation (CFC)A foreign corporation whose voting stock is more than 50% owned Conversion factorsRules set by the Chicago Board of Trade for determining the invoice price of each cost of goods manufactured (CGM)the total cost of the Cost of manufactureThe cost of goods manufactured for subsequent sale. cost-plus contracta contract in which the customer agrees Creative Accounting PracticesAny and all steps used to play the financial numbers game, including critical success factors (CSF)any item (such as quality, customer Current Tax Payment Act of 1943A federal act requiring employers to withhold income taxes from employee pay. Davis-Bacon Act of 1931A federal act providing wage protection to nongovernment De factoExisting in actual fact although not by official recognition. 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 Discount factorPresent value of $1 received at a stated future date. discount factorPresent value of a $1 future payment. Employee Retirement Income Security Act of 1974 (ERISA)A federal act that sets minimum operational and funding standards for employee benefit Equal Pay Act of 1963A federal act requiring that both sexes receive equal pay Exact matchingA bond portfolio management strategy that involves finding the lowest cost portfolio 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 Fair Labor Standards Act of 1938A federal act creating standards of overtime Family and Medical Leave ActA federal act containing the rules for offering Farm Improvement and Marketing Cooperatives Loans ActSee here Federal Insurance Contributions Act of 1935 (FICA)A federal act authorizing the government to collect Social Security and Medicare payroll taxes. Federal Unemployment Tax Act (FUTA)A federal act requiring employers to pay a tax on the wages paid to their employees, which is then used to create a financing activitiesOne of the three classes of cash flows reported in the flexible manufacturing system (FMS)a production system in which a single factory manufactures numerous variations Floating-rate contractA guaranteed investment contract where the credit rating is tied to some variable Foreign banking marketThat portion of domestic bank loans supplied to foreigners for use abroad. Foreign bondA bond issued on the domestic capital market of anther company. Foreign bond marketThat portion of the domestic bond market that represents issues floated by foreign Foreign currencyforeign money. Foreign currency optionAn option that conveys the right to buy or sell a specified amount of foreign Foreign currency translationThe process of restating foreign currency accounts of subsidiaries into the Foreign direct investment (FDI)The acquisition abroad of physical assets such as plant and equipment, with Foreign equity marketThat portion of the domestic equity market that represents issues floated by foreign companies. Foreign exchangeCurrency from another country. Foreign ExchangeThe currency of a foreign country. Foreign exchange controlsVarious forms of controls imposed by a government on the purchase/sale of Foreign exchange dealerA firm or individual that buys foreign exchange from one party and then sells it to Foreign Exchange MarketA worldwide market in which one country's currency is bought or sold in exchange for another country's currency. Foreign Exchange ReservesA fund containing the central bank's holdings of foreign currency or claims thereon. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |