Term
| When the dollar is weakening... |
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Definition
it takes more dollars to buy ONE Euro.
But when we translate European revenues into the US, our income increases. |
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Term
| When the dollar is strengthening... |
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Definition
it takes less dollars to buy ONE Euro.
But when we translate European revenues into the US, our income decreases. |
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Term
Dollar Weakens = Assets, Liabilities and Income ___
Dollar Strenghtens =Assets, Liabilities and Income ___ |
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Definition
$$ weakens = Income INCREASES
$$ strengthens = Income DECREASES
Fluctuations are held on the Balance Sheet because it is expected that fluctuations over time will balance out, therefore keeping it off the Income Statement. |
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Term
| When Taxes Due does not equal Tax Expense... |
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Definition
either a liability or assets account is adjusted.
(Deferred Tax Asset or Liability) |
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Term
Timing Differences:
If it starts out as a Deferred Tax Liability/Deferred Tax Assets...
**Remember: When recording transaction, Cash and Rev/Exp are BOTH negative |
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Definition
| it stays as a deferred tax liabaility/deferred tax asset its entire life, even when it starts reversing (increase/decerase) |
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Term
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Definition
| Tax Rate * (Book Value - Tax Basis) |
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Term
| Examples for Deferred Tax Assets: |
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Definition
| Warranties and Bad Debt Expense |
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Term
| Deferred Tax Assets go into... |
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Definition
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Term
| Deferred Tax Liabilities go into... |
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Definition
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Term
| What is a Loss Tax Carryforward? |
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Definition
When a company reports Net Loss in a previous period, it can carryforward that loss to decrease the amount of tax it pays on Net Income in a future period.
Ex/
2004 Net Loss: $50
2005 Net Income: $75
Can carryforward the loss of $50, and therefore, only pay income tax on $25 |
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Term
| Valuation Allowance: ... Need more info |
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Definition
| See Slide 38 - Need more explanation |
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Term
Extraordinary items must be...
They are segregated from the... |
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Definition
1. Unusual
AND
2. Infrequent
..Income Statement |
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Term
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Definition
(Net Income - Preferred Dividends)
_________________________________
Weighted Average Common Stock |
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Term
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Definition
(Net Income - Preferred Dividends)
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(Weighted Average Common Stock + an adjustment of additional shares of stock reflecting the effect of the potential exercise of the stock options)
See Slide 64 - 66
KNOW!!! |
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Term
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Definition
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Term
| It is common practice to set exercise price to _________________ on the grant date. |
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Definition
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