TExES Business and Finance (276) Prep Manual & Extras Latest 2023 Already Passed

xES Business and Finance (276) Prep Manual & Extras Latest 2023 Already Passed Income Statement Produced once a month to ensure expense review and control Income Statement' Allows a company to determine how much money is coming in and how it's being spent Promissory Note Indicates a loan and debt financing to raise capital Convertible Securities Used to raise capital by way of equity financing Convertible Securities' Stock or bond, that can be converted to another type of security Convertible' Securities Another type of bond or stock Direct Stock Offerings Used to raise capital by equity financing Initial Public Offering (IPO) Raises capital through equity financing Withdrawal of money from account via ATM Amt is deducted from the customer's account balance Customer's access privilege Occurs after the server connection has been established and the verification that the customer holds an account has occurred Establishing the server connection First step that must occur for a process to begin Verification that a customer holds an account This must occur before a withdrawal can occur Creditworthiness The key determinant of how likely it is that the loan will be repaid Lending company examines Current cash flow, not past liabilities Expenses associated with employee risk management Unrelated to any of the characteristics that a lending company will be reviewing Entrance of a competitor to the market Unrelated to the characteristics that a lending company will be reviewing Doctrine of Insurable Interest A person will suffer financial or other kinds of loss when they lose or damage a particular property Doctrine of Contribution A defendant who has paid more than his/her share of the award has a claim against other jointly liable parties for the excess payment Doctrine of Subrogation The ability of one person to take the place of another in regard to a lawful claim/ demand or right against a third party Doctrine of Indemnification The ability to financially restore a property as it was prior to the incident Perpetual Inventory System Records actual costs affiliated with inventory using a physical count Periodic Inventory System Inventory does not become part of the count of goods to be sold Temporary Inventory System Does not account for inventory errors Just-in-time Inventory System Inventory goods are not on hand until needed Prepaid Insurance' Paid in advance and hold value Prepaid' Insurance A refund could be requested for the unused portion 'Prepaid Insurance Is expensed only as it is used Liability An obligation that is due and is unrelated to the sale of a product or service Equity Ownership in stock or other securities Salvage Value Used as a component of the depreciation calculation Market Value Bases its price on a supply and demand of the item Market Value' Not used in straight-line depreciation Enterprise Value Economic value of a company Enterprise Value' Not used in a straight-line depreciation' Replacement Value Equals the cost to replace an asset at market price 'Replacement Value 'Not used in a straight-line depreciation Supply management Another term for Traditional Purchasing Department Traditional Purchasing Department Has evolved into a position of greater importance and esteem within a company Supply Management' Has evolved into a position of greater importance and esteem with a company' Quality of goods and services decrease due to Suppliers constantly forced to reduce prices Loss of standing among consumers and in the market can occur due to A company offering inferior products and services Damage control Is expensive and may not work Why has purchasing changed to rational? It has been discovered that relationships with suppliers can lead to cooperation so that mutual benefit occurs Cost to form a partnership Less expensive than the cost to form a corp., joint venture, or cooperative Cost to form a corporation Expensive and requires extensive documentation