Glossary of Terms
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- Factor:
- An entity that buys accounts receivable.
- Factoring:
- The selling or transferring of receivable.
- Factory overhead costs:
- A collection of production-related costs that cannot be conveniently or economically traced directly to a product unit.
- Financial accounting:
- The process of generating accounting information that is communicated in the form of financial statements to those outside the organization.
- Financial Accounting Standards Board (FASB):
- The body that primary responsibility for developing and issuing Statements of Financial Accounting Standards, rules on accounting practice.
- Financial position:
- The economic resources that belong to a company and the claims against those resources at a point in time.
- Financial statements:
- The primary means of communicating important accounting information to users.
- Finished Goods Inventory:
- The inventory account that holds the costs assigned to all completed products that have not been sold.
- First-in, first-out (FIFO) method:
- An inventory cost method based on the assumption that the costs of the first items acquired should be assigned to the first items sold.
- Fiscal year:
- Any twelve-month accounting period used by an economic entity.
- Fixed costs:
- Cost totals that remain constant within a relevant range of volume or activity.
- Flexibility principle:
- The principle that holds that the design of an accounting system must have enough flexibility to allow the volume of transactions to grow and organizational changes to be made.
- FOB destination:
- A term related to transportation charges that mean that the seller bears transportation costs to the destination.
- FOB shipping point:
- A term related to transportation charges that mean that the buyer bears transportation costs from the point of origin.
- Footings:
- Working totals of columns of numbers. To "foot" means to total a column of numbers.
- Fraudulent financial reporting:
- The intentional preparation of misleading financial statements.
- Freight in:
- Transportation charges on merchandise purchased for resale. Also called transportation in.
- Full disclosure:
- The convention that requires that financial statements and the notes to them present all information relevant to the users' understanding of the company's financial condition.