Face Value: The amount of the issuer's liability stated in
the security document.
Factor: To sell accounts receivable at a discount before they
are due.
Fair Market Value: The current value of an asset, e.g., the
amount at which an asset could be sold or purchased in an arm's-length transaction.
FASB (Financial Accounting Standards Board): The private organization
responsible for establishing the standards for financial accounting and reporting
in the United States.
FCPA (Foreign Corrupt Practices Act): Legislation requiring
any company that has publicly-traded stock to maintain records that accurately
and fairly represent the company's transactions; additionally, requires any
publicly-traded company to have an adequate system of internal accounting controls.
FICA (social security) taxes: Federal Insurance Contributions
Act taxes imposed on employee and employer; used mainly to provide retirement
benefits.
FIFO (first-in, first-out): An inventory cost flow whereby
the first goods purchased are assumed to be the first goods sold so that the
ending inventory consists of the most recently purchased goods.
Financial Accounting: The area of accounting concerned with
reporting financial information to interested external parties.
Financial Accounting Standards Board (FASB): The private organization
responsible for establishing the standards for financial accounting and reporting
in the United States.
Financial Statements: Reports such as the balance sheet, income
statement, and statement of cash flows, which summarize the financial status
and results of operations of a business entity.
Financing Activities: Transactions and events whereby resources
are obtained from, or repaid to, owners (equity financing) and creditors (debt
financing).
Fiscal Period: Any period at the end of which a business determines
it's financial position and the results of it's operations.
Fiscal Year: An entity's reporting year, covering a 12 month
accounting period.
Fixed Budget: A budget setting forth dollar amounts that are
not subject to changed based on the volume of goods or services to be provided.
Floor: The minimum market amount at which inventory can be
carried on the books; equal to net realizable value minus a normal profit.
FOB (free-on-board) destination: A business term meaning that
the seller of merchandise bears the shipping costs and maintains ownership until
the merchandise is delivered to the buyer.
FOB (free-on-board) shipping point: A business term meaning
that the buyer of merchandise bears the shipping costs and acquires ownership
at the point of shipment.
Foreign Corrupt Practices Act (FCPA): Legislation requiring
any company that has publicly-traded stock to maintain records that accurately
and fairly represent the company's transactions; additionally, requires any
publicly-traded company to have an adequate system of internal accounting controls.
Form 941: The IRS form filed quarterly to report income tax,
FICA, and Medicare withholdings.
Form 1099: An IRS form sent to certain vendors whom you have
paid more than $600 during the year.
Franchise: An entity that has been licensed to sell the product
of a manufacturer or to offer a particular service in a given area.
Freight-in: An account used with the periodic inventory method
for recording the costs of transporting into a firm all purchased merchandise
intended for sale; added to purchases in calculating cost of goods sold.
Freight Collect: The buyer pays the shipping costs.
Functional Currency: The currency in which a subsidiary conducts
most of its business; generally, but not always, the currency of the country
where it does most of its spending and earning.
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