Term
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Definition
| Amounts owed to creditors for goods and services bought on credit, they must be paid within 90 days |
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Term
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Definition
| Amounst due a business from customers for goods and services sold on credit; generally they must be paid within 90 days. |
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Term
| Accrual Method of Accounting |
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Definition
| Method of accounting that recognizes revenue when earned and expenses when incurred in order to aprpriately match income with expenses in an accounting period |
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Term
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Definition
| A deduction from intangible assets to show the total amount of periodic changes to income over the estimated useful lives of those assets. Also called Reserve for Amortization |
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Term
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Definition
| The obligation to pay business expenses that were incurred, but not paid, during an accounting period |
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Term
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Definition
| A deduction from fixed assets to show the total amount of periodic changes to income over the estimated useful lives of those assets. Also called Reserve for Depreciation. |
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Term
| Additional Paid-in Capital |
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Definition
| The total excess of the shareholders' investment in the company over the par or stated value of its common or preferred stock. Also called Paid-in Capital |
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Term
| American Institute of Certified Public Accountants (AICPA) |
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Definition
| The major professional public accounting group that sets standards of practice for Certified Public Accountants. |
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Term
| Allowance for Doubtful Accounts |
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Definition
| Amounts deducted from the total accounts receivable balance to recognize that some customers will not pay what they owe. (Bad debt reserve) |
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Term
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Definition
| Perodic changes to income to recognize the distribution of the cost of the company's intangible assets over the estimated useful lives of those assets |
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Term
| Antidilution (to Earnings per Common Share) |
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Definition
| An increase in earnings (or decrease in loss) per common share that assumes that convertible securities wer converted, stock options and warrants were exercised or other shares were issued upon satisfaction of certain conditions. When antidilution occurs the per-share amount that it produces is not used as the reported per-share amount. |
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Term
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Definition
| Something owned by and having continuing value to its owner or a business |
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Term
| Audit (of financial statements) |
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Definition
| A systematic examination of a company's financial statements to determine if the amounts and disclosures in the reports are fairly stated and follow generally accepted accounting principles |
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Term
| Avaliable for Sale Securities |
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Definition
| Securities not classified as held-to-maturity or trading. They are carried at the fair market value, with any changes in teh value (less applicable taxes) reported in shareholders' equity in the balance sheet. When sold, any gain or loss will be realized and reported in the income statement. |
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Term
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Definition
| A report showing the financial position or condition of a business at a given date. |
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Term
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Definition
| Formal, sercured or unsecured debt obligations specifying interest and repayment terms |
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Term
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Definition
| The adjusted shareholder's equity for each classs of stock divided by the number of shares of each such class |
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Term
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Definition
| The relationship that each security (debt or equity) bears to total debt and equity, less intangible assets, expressed as a ratio. |
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Term
| Cash and Cash Equivilents |
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Definition
| Generally, bank accounts and currency on hand, and short-term, highly liquid securities with a maturity under 90 days, such as U.S. Treasury bills. |
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Term
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Definition
| A report showing cash receipts and disbursements compilied and totaled by operating, investin and/or financing activities. |
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Term
| Certified Public Accountant |
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Definition
| Professional title granted to people who pass a comprehensive test on accounting, auditing and business law. CPA's usually perform audits of a company's financial statements. |
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Term
| Changes in Shareholders' Equity, Statement |
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Definition
| A report providing the details, by category, of all activity in the all components of shareholders' equity, for the period covered by that report. |
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Term
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Definition
| Dividends paid on each share of common stock expressed as a percentage of the market price of those shares. |
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Term
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Definition
| The par or stated value of the common stock (the basic ownership interest in a corporation) issued by a company as reported in its balance sheet. |
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Term
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Definition
| Securities, other than common stock, such as certain convertible securities (stocks or bonds), stock options or warrants, which are considered to be common stock, and are recognized in the primary earnings-per-common share computation. |
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Term
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Definition
| The percentage that common stockholders' equity reduced by intangible assets bears to total tangible capitalization (the sum of shareholders' equity and long-term debt reduced by intangibles) |
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Term
| Contigently Issuable Shares |
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Definition
| Shares of stock the issuance of which depends on the occurance of certain events |
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Term
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Definition
| A debt or equity security that may under certain circumstances be exchanged for or converted into another security, generally common stock. |
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Term
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Definition
| The total cost to purchase and/or manufacture all of the company's products that were sold during a period. |
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Term
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Definition
| Cash or other assets that will be converted to cash or consumed within the normal operating cycle, generally one year. |
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Term
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Definition
| A liability that must be paid within the normal operating cycle, generally one year. |
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Term
| Current Portion of Long-Term Debt |
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Definition
| The portion of long-term debt that is due within one year of the balance-sheet date. |
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Term
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Definition
| The relationship of current assets to current liabilities, expressed as a ratio. |
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Term
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Definition
| Formal, unsecured debt obligations (bonds or notes) that are backed only by the general credit of the issuer rather than certain of its assets. |
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Term
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Definition
| The practice of adjusting the original cost of a debt instrument as principal payments are received and any purchase discount or premiom is written off to income over the life of the instrument. |
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Term
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Definition
| The ratio of total debt (liabilities) to total shareholders' equity. |
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Term
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Definition
| The obligation to pay income taxes in future years generally arising from transactions involving noncurrent assets and/or liabilities. |
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Term
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Definition
| Expenditures for items that will benefit future periods beyond one year from the balance-sheet date. |
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Term
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Definition
| The process of recognizing, by a charge against income, the reduction in teh cost of a natural resource (mineral, oil, gas) due to its withdrawl and use or sale. |
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Term
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Definition
| Periodic changes to income to recognize the cost of "wear and tear" of a company's fixed assets over the estimated useful lives of those assets. |
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Term
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Definition
| The reduction in common earnings per share (or increase in loss) if convertible securities are converted, stock options and warrants are exercised or other shares are issued. |
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Term
| Dividend Payout Percentage |
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Definition
| Dividends per share divided by earnings per share, expressed as a percentage |
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Term
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Definition
| The dividend paid on each share of each class of stock as a percentage of the market price of those shares. |
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Term
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Definition
| Payments, generally declared by the Board of Directors, from retained earnings to shareholders to compensate them for their investment. |
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Term
| Earnings per Common Share |
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Definition
| Net income reduced by preferred dividends and divided by the average outstanding number of common shares during the accounting period. |
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Term
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Definition
| The period of time over which the owner of an asset (physical or intangible) estimates that that asset will continue to be of prodcutive use or have continuing value. |
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Term
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Definition
| The amount at which an item could be exchanged between willing unrelated parties, other than in forced liquidation. It is usually the quoted market price when a market exists for the item. |
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Term
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Definition
| Nonoperating items that are both unusual and occur infrequently. |
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Term
| Financial Acounting Standards Board |
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Definition
| The independent, private-sector organization designated to establish standards for financial accounting and reporting. It is the body that issues GAAP, generally accepted accounting practices. |
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Term
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Definition
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Term
| Financial Statement Ratio |
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Definition
| A mathmatical relationship between two or more amounts reported in financial statements. Financial statement ratios can provide relative measures of, and insights into, the health, condition and performance of a company. |
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Term
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Definition
| An inventory-costing method that states inventory at its most current cost while charging the cost of sales in the order the inventory was accumulated. |
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Term
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Definition
| Another term for the property, plant and equipment, used in teh operation of business |
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Term
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Definition
| Additional details and disclosures about the figures and information contained in a company's financial statements. |
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Term
| Foreign Currency Translation Adjustments |
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Definition
| The cumulative adjustment, reported in the Equity section of the balance sheet, resulting from the translation of a foreign subsidiary's into the currency of the parent company. |
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Term
| Fully Diluted Earning per Common Share |
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Definition
| The amount of current earnings or loss per share reflecting the maximum dilution (that is, negative impact) assuming the issuance of all potentially dilutive shares. |
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Term
| Generally Accepted Accounting Practices (GAAP) |
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Definition
| The rules and standards followed in recording transactions and in preparing financial statements. |
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Term
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Definition
| An intangible asset that represents the excess of the amount paid for an acquired company over the fair market value of the net assetsof that company. Basically, it is the value of the name and reputation of the acquired company. |
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Term
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Definition
| The excess of sales over cost of sales or the profit from sales before considering operating, general and other expenses. |
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Term
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Definition
| Gross margin expressed as a percentage of sales |
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Term
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Definition
| Debt securities that eh holder/owner has the ability and intent to hold maturity. They are carried at amoritized cost (original cost less principal payments and premium or discount amortization) |
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Term
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Definition
| A company with a large proportion of bonds and preferred stock outstanding relative to the amount of common stock. |
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Term
| Impairment (Permanent) of Loans (Investments) |
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Definition
| The probability that he lender (investor) wil not collect all amounts in accordance iwth the loan agreement. |
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Term
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Definition
| Report summarizing the revenues and expenses and reporting the net income (or loss) of a business for an entire accounting period. |
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Term
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Definition
| The amount of income tax expense reported for the period. It is often referred to as the Tax Provision or Provision for Income taxes. |
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Term
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Definition
| The obligation to pay federal, foreign, state and local income taxes that are due within one year from the balance sheet date. |
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Term
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Definition
| Nonphysical assets with continuing value, such as goodwill, copyrights, trademarks and frachises. |
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Term
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Definition
| Payments by borrowers of funds to compensate lenders for the use of their funds. |
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Term
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Definition
| The number of times the annual interest on debt obligations is covered by income for the year before considering interest on teh debt obligations and taxes. |
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Term
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Definition
| The costs of goods on hand that were purchased and/or manufactured or that are being manufactured for sale to customers |
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Term
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Definition
| The number of times the average inventory is sold during the year. |
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Term
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Definition
| Securities (debt or equity) held for strategic purposes and/or long-term appreciation or income. |
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Term
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Definition
| An inventory-costing method that states inventory at its earliest cost while charging cost of sales at its latest cost (in reverse order that the inventory was accumulated) |
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Term
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Definition
| Relates a company's long-term debt to its capital structure. Also, it is the practice of obtaining capital using borrowed funds or preferred stock, rather than common stock. |
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Term
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Definition
| An obligation to pay for assets or goods or services acquired or to repay borrowed funds. |
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Term
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Definition
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Term
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Definition
| Borrowed funds due after one from the balance sheet date. |
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Term
| Lower of Cost or Market Rule. |
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Definition
| The rule is that inventory should be valued at its cost or market value, whichever is lower. The intent is to provide a conservative figure in valuing a company's inventory. |
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Term
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Definition
| Obligations that are due after one year from the balance-sheet date. |
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Term
| Management Discussion and Analysis (MD&A) |
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Definition
| An SEC-required report in which management provides selected financial data to highlight significant trends in the company's financial position or operating results. |
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Term
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Definition
| The price at which a good can be sold in the open market. |
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Term
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Definition
| Readily liquid securities (debt or equity) that can be converted into cash on very short notice. |
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Term
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Definition
| Formal, secured debt obligations that are backed by certains specific assets of the issuer. |
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Term
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Definition
| The final result of all revenue and expense items for the period. Often referred to as the "bottom line" |
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Term
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Definition
| Term meaning the value or amount has been adjusted for the effects of applicable taxes. |
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Term
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Definition
| Net income expressed as a percentages of sales |
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Term
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Definition
| The excess of quick assets over current liabilities. |
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Term
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Definition
| Short or Long-term obligation, evidenced bya formal borrowing agreement (such as a promissory note), to repay borrowed funds. |
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Term
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Definition
| The profit or loss generated by a company's normal, recurring operating activities before considering nonoperating items, income taxes, gains or losses from disposals of a segment of the business and extraordinary items. |
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Term
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Definition
| Operating income expressed as a percentage of sales. |
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Term
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Definition
| All debt due after one year from the balance-sheet date that is not reported elsewhere in the balance sheet. |
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Term
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Definition
| The nominal or face value of a security assigned by the issuer for balance-sheet reported elsewhere in teh balance sheet. |
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Term
| Preferred Dividend Coverage |
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Definition
| The number of times the preferred dividend is covered (earned) by net income. |
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Term
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Definition
| An equity security that entitiles its holders to certain preferences over common shareholders, such as dividends, liquidation value and convertibility into other securities. |
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Term
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Definition
| The percentage that preferred stockholders' equity bears to total tangible capitalization (the sum of shareholders' equity and long-term debt reduced by intangibles) |
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Term
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Definition
| Payments in advance for goods or services, which will be consumed and deucted from income during the future, normal operating cycle, generally one year. |
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Term
| Price-Earnings Ratio (P/E ratio) |
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Definition
| The comparison of the market price of a share of stock to the earnings per share of that stock, expressed as a ratio. |
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Term
| Primary Earning per Common Share |
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Definition
| The amount of earnings attributable to each share of common stock, including common stock equivalents. |
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Term
| Property, Plant and Equipment |
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Definition
| Assets not intended for sale that are used to manufacture, display, warehouse, and transport the company's products and houses it employees. |
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Term
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Definition
| Assets that can be converted to cash quickly |
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Term
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Definition
| The relationship between quick assets and current liabilities, expressed as a ratio. |
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Term
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Definition
| The total profit or loss of the company less the total of all dividends paid, since the company's startup. |
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Term
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Definition
| Net income for the period expressed as a percentage of average shareholders' equity for the period |
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Term
| Securities and Exchange Commission |
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Definition
| The main securities regulatory authority in the U.S. |
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Term
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Definition
| The total of shareholders' investmetns in teh company and total profits or losses since the start-up of the company, less all dividends and/or capital distributions, unrealized gain on avaliable-for-sales securities and any foreign currency translation adjustments since the company's start-up. |
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Term
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Definition
| The nominal or face value of a security assigned by the issuer in lieu of par value for balance-sheet reporting. It has no relation to market value. |
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Term
| Stock option, (Publicly Traded) |
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Definition
| A security bought and sold in the public securities markets that provides the holder the right, but not necessarily the obligation, to buy or sell a specified security in the quantity, at the amount, and during the time period specified in the option. |
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Term
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Definition
| The excess of curent assets over current liabilities. |
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Term
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Definition
| A security, generally evidenced by a certificate, giving the holder the right to purchase securities, such as common stock, at a specified price. Warrants are common stock equivalents and may dilute earnings per common share. |
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Term
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Definition
| The difference between the cost (or previously reported fair market value) of an asset held at the balance sheet date and its fair market value at that date. |
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Term
| Stock Option, Comensatory (or Unissued Stock) |
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Definition
| An agreement, usually between an issuer an dits executives/employees, that grants the right to purchase securities, such as common stock at a specified price. Options are common stock equivilents and may dilute earnings per common share. |
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Term
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Definition
| Securitites (debt or equity) bought and sold frequently, principally to generate short-term profits. They are carried at fair market value, with any changes in teh value reported in income. |
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Term
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Definition
| The total cost of any of the company's stock that has been repurchased or otherwise reacquired from shareholders and held in the company's treasury. |
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