Accounting Terminology Listed Below Are Nine Technical Accounting Terms Introduced in This

question 61

Essay

Accounting terminology
Listed below are nine technical accounting terms introduced in this chapter:

Each of the following statements may (or may not) describe one of these technical terms. In the space provided below each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms.
_____ (a) The strategy of creating offsetting positions so that losses from currency fluctuations will be offset by gains resulting from the same fluctuations.
_____ (b) The price of foreign currency, stated in terms of the domestic currency.
_____ (c) An item likely to appear in the income statements of American-based importers when foreign exchange rates are rising.
_____ (d) The organization responsible for developing uniform worldwide accounting standards.
_____ (e) Payments made to foreign officials to expedite paperwork.
_____ (f ) The process of restating an amount of foreign currency in terms of the equivalent number of U.S. dollars.
_____ (g ) An item likely to appear in the income statements of American-based exporters when foreign exchange rates are falling.

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Definitions:

Contracting Efficiencies

Improvements in performance or cost savings achieved through outsourcing or entering into contracts for services.

Agency Costs

Expenses stemming from conflicts of interest between principals (owners) and agents (managers) in a corporation.

Decision Management

The process of making business decisions through repeatable and manageable methodologies, often aided by specialized software.

Standard Costs

Predetermined costs for materials, labor, and overheads used as benchmarks to evaluate actual production or manufacturing costs.