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Definition of Roll over
Reinvest funds received from a maturing security in a new issue of the same or a similar security.
Most term loans in the Euromarket are made on a rollover basis, which means that the loan is
An IRA that an individual sets up for the express purpose of receiving
The sum of cash, accounts receivable, and short-term marketable
Current means that these liabilities require payment in
This calculation is used by states to determine the unemployment
Schedule of depreciation rates allowed for tax purposes.
The ratio of net credit sales to average accounts receivable, a measure of how
A bond indenture restriction that permits additional borrowing on if the ratio of assets to
The ratio of net sales to total assets.
The number of times that financial obligations (for interest, principal payments,
A service that provides for a single presentation of checks each day (typically in
A foreign corporation whose voting stock is more than 50% owned
The corporate manager responsible for the firm's accounting activities.
The purchase of a contract to offset a previously established short position.
Ratios used to test the adequacy of cash flows generated through earnings for purposes of
A short call option position in which the writer owns the number of shares of the underlying
Covered call writing strategy
A strategy that involves writing a call option on securities that the investor
Covered interest arbitrage
A portfolio manager invests dollars in an instrument denominated in a foreign
Covered or hedge option strategies
Strategies that involve a position in an option as well as a position in the
A put option position in which the option writer also is short the corresponding stock or has
The return at which two alternative projects have the same net present value.
Debt-service coverage ratio
Earnings before interest and income taxes plus one-third rental charges, divided
Doctrine of sovereign immunity
Doctrine that says a nation may not be tried in the courts of another country
Similar to the reverse repurchase agreement - a simultaneous agreement to sell a security held in a
Fixed asset turnover ratio
The ratio of sales to fixed assets.
Fixed-charge coverage ratio
A measure of a firm's ability to meet its fixed-charge obligations: the ratio of
Purchase or sale of forward foreign currency in order to offset a known future cash flow.
See: Government securities.
Government National Mortgage Association (Ginnie Mae)
A wholly owned U.S. government corporation
Government sponsored enterprises
Privately owned, publicly chartered entities, such as the Student Loan
Negotiable U.S. Treasury securities.
Interest coverage ratio
The ratio of the earnings before interest and taxes to the annual interest expense. This
Interest coverage test
A debt limitation that prohibits the issuance of additional long-term debt if the issuer's
The ratio of annual sales to average inventory which measures the speed that inventory
The theory that in certain situations, institutions wish to sell their shares but postpone the
An indicator that attempts to define when prices have moved too far and too
Overfunded pension plan
A pension plan that has a positive surplus (i.e., assets exceed liabilities).
A strategy of using futures for asset allocation by pension sponsors to avoid disrupting the
Overnight delivery risk
A risk brought about because differences in time zones between settlement centers
A repurchase agreement with a term of one day.
When a security is expected to appreciate at a rate faster than the overall market.
The supposition that investors overreact to unanticipated news, resulting in
The tendency of a pool of MBSs to reflect an especially high rate or prepayments the first time
Investors are not able to buy all of the shares or bonds they want, so underwriters must
In a rights issue, arrangement by which shareholders are given the right to apply
Over-the-counter market (OTC)
A decentralized market (as opposed to an exchange market) where
Portfolio turnover rate
For an investment company, an annualized rate found by dividing the lesser of
Price discovery process
The process of determining the prices of the assets in the marketplace through the
An upward movement of prices. Opposite of reaction.
Receivables turnover ratio
Total operating revenues divided by average receivables. Used to measure how
Risk controlled arbitrage
A self-funding, self-hedged series of transactions that generally utilize mortgage
A person willing to accept lower expected returns on prospects with higher amounts of risk.
The risk that a central bank will impose foreign exchange regulations that will reduce or
General term referring to transfer of control of a firm from one group of shareholder's to another
Total asset turnover
The ratio of net sales to total assets.
Mutual Funds: A measure of trading activity during the previous year, expressed as a percentage of
A short call option position in which the writer does not own shares of underlying stock
A short put option position in which the writer does not have a corresponding short stock
The number of times a company sold out and replaced its average stock of goods in a year. The formula is:
MACRS (Modified Accelerated Cost Recovery System)
A depreciation method created by the IRS under the Tax Reform Act of 1986. Companies must use it to depreciate all plant and equipment assets installed after December 31, 1986 (for tax purposes).
Money owed to the bank in a cheque account where payments exceed receipts.
The profit made by a division after deducting only those expenses that can be controlled by the
A general term referring to period costs, such as selling, administration and financial expenses.
Any cost other than a direct cost â€“ may refer to an indirect production cost and/or to a non-production expense.
The process of spreading production overhead equitably over the volume of production of goods or services.
The rate (often expressed per hour) applied to the time taken to produce a product/service, used to allocate production overheads to particular products/services based on the time taken. May be calculated on a business-wide or cost centre basis.
A general term referring to indirect costs.
A method of budgeting in which as each month passes, an additional budget month is added such that there is always a 12-month budget.
The business income or sales of goods and services.
The amount paid to employees for services rendered; synonymous with salary expense and wage expense.
A journal used to record the payroll of a company.
Payroll tax expense
The amount of tax associated with salaries that an employer pays to governments (federal, state, and local).
Payroll taxes payable
The amount of payroll taxes owed to the various governments at the end of a period.
accounts receivable turnover ratio
A ratio computed by dividing annual
asset turnover ratio
A broad-gauge ratio computed by dividing annual
Refers to recouping, or regaining, invested capital over
inventory turnover ratio
The cost-of-goods-sold expense for a given
overhead generally refers to indirect, in contrast to direct,
Fixed Assets Turnover Ratio
A measure of the utilization of a company's fixed assets to
Fixed Charge Coverage Ratio
A measure of how well a company is able to meet its fixed
Inventory Turnover Ratio
Provides a measure of how often a company's inventory is sold or
Total Asset Turnover Ratio
A measure of the utilization of all of a company's assets to
the amount of overhead that has been assigned to Work in Process Inventory as a result of productive activity; credits for this amount are to an overhead account
a ratio measuring asset productivity and showing the number of sales dollars generated by each dollar of assets
a cost over which a manager has the ability to authorize incurrence or directly influence magnitude
the budget variance of the two variance approach to analyzing overhead variances
the chief accountant (in a corporation) who is responsible
the process of exerting managerial influence on
fixed overhead spending variance
the difference between the total actual fixed overhead and budgeted fixed overhead;
fixed overhead volume variance
see volume variance
the fixed overhead volume variance;
a credit balance in the overhead account
any factory or production cost that is indirect to
overhead application rate
see predetermined overhead rate
overhead efficiency variance
the difference between total budgeted overhead at actual hours and total budgeted
overhead spending variance
the difference between total actual overhead and total budgeted overhead at actual
predetermined overhead rate
an estimated constant charge per unit of activity used to assign overhead cost to production or services of the period; it is calculated by dividing total budgeted annual overhead at a selected level of volume or activity by that selected measure of volume or activity; it is also the standard overhead application rate
see continuous budgeting
standard overhead application rate
a predetermined overhead rate used in a standard cost system; it can be a separate variable or fixed rate or a combined overhead rate
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