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What is meant by “Financial Changes”? The changes in the net working capital from other than operating transactions, such as the sale or purchase of noncurrent assets are called financial changes.

What is meant by the accounting term “Foreign Currency Translation”? An accounting term meaning that one currency is restated in terms of another currency is called foreign currency translation.

What are foreign currency transactions? Transactions that are denominated in foreign currency. For example, a U.S. firm makes a sale to an overseas firm and agrees to accept payment in foreign currency, or a purchase is made from an overseas firm and payment must be made in the foreign currency.

What is meant by fully diluted eps? Fully diluted eps is the net income available to common shareholders as calculated by the weighted average number of common shares outstanding, plus all dilutive securities, whether or not they are considered common stock equivalents.

What is meant by FICA Taxes? A combination of Old Age Survivors and Disability Insurance (O.A.S.D.I.) and Medicare Insurance; also called social security taxes.

What is a franchise? A franchise is a right to use a formula, design, technique, or the right to conduct business in a certain territory.

What is meant by FOB Shipping Point? FOB Shipping Point is the terms sale in which legal title to the goods transfers from the seller to the buyer when those goods leave the seller’s warehouse, and as a result, the buyer pays the freight charges.

What is meant by the accounting term FOB Destination? Definition FOB Destination is the terms of the sale in which the legal title of the goods not pass until they reach the buyer’s receiving point. and as a result, the seller pays the freight.

What is the Full Disclosure Principle? Full Disclosure Principle is an accounting convention requiring that a firm’s financial statement provide users with all relevant information about the various transactions in which a firm has been involved.

What are financial statement footnotes? The footnotes accompanying the financial statement, narrative explanations of the important aspects of various items in the statement.

What is Fiscal Year? Fiscal Year is a year that ends on the last day of any month other than December.

What are the Financial Statements? Financial Statements are the reports with which financial information about a particular enterprise is communicated to users.  

FASB is a private sector body that has responsibility for developing and issuing accounting standards.

Functional authority is the right to command action laterally and downward with regard to a specific function or specialty.

Full cost is the sum of all the costs in all the business function (research and development, product design, manufacturing, marketing, distribution, and customer service).

Flexible-budget variance is the difference between actual results and the flexible budget amounts for the actual output achieved. Also called, for brevity, budget variance.

Fixed-price contract is the Contract reimbursement method in which the price the contractor receives is established at the outset.

Mathematical statement of the relationships among all the operating activities, financial activities, and other major internal and external factors that may affect decisions is called Financial planning model.

Financial accounting can be defined as the focuses on how accounting can serve external decision makers. Heavily constrained by generally accepted accounting principles. Contrast with management accounting.