Back-End CASE
(Computer Aided Software Engineering)
Tools used by programmers to facilitate the programming process.
Backup Storing one or more copies of data in case something goes wrong.
Backward Chaining In an expert system, a goal-oriented process of starting with a tentative conclusion and then looking for facts in the database that support that conclusion.
Bad Check Laws Laws enacted in the various states to encourage and facilitate the lawful use of checks. These statutes differ in the various jurisdictions and are generally enforced according to the state laws as well as local custom and usage.
Bad Debt Uncollectible accounts that are encountered due to poor credit decisions, aggressive credit policy or an unpredictable event.
Bad Debt Ratio A ratio of bad debt to sales.
Bad Debt Reserves It is necessary to anticipate accounts that may prove uncollectible and then establish a reserve of profits to which such uncollectible accounts will ultimately be charged.
Bad Faith “Actual intent” to mislead or deceive.
Bailee A legal term for a person to whom property is loaned or entrusted.
Bailment The delivery of property by one known as the bailor to another known as the bailee to be held in custody for certain purposes.
Bailor A person who entrusts property to another.
Balance Due The net aggregate owed after applying all debits and credits to an account.
Balance of Payments A record of all economic transactions between residents of one country and residence of the rest of the world during a given time period.
Balance of Trade The difference between the dollar value of a nation’s exports and the dollar value of its imports for a stated period of time.
Balance Sheet A financial statement listing the assets, liabilities, and owner’s equity of a business entity as of a specific date.
Balance Sheet Components See “Classification of Accounts” Appendix 1 of Glossary
Balanced Budget Amendment Proposed amendment to the U.S. Constitution, requiring a balanced federal budget.
Balloon Payment An obligation, loan or mortgage providing for routine smaller installments with a large final (balloon) payment to be made at maturity or at specified intervals.
Bang Out The intentional act of driving a company into insolvency in order to extract as much of the assets as possible from the company for the use of the operator(s). A term used by “underworld operators” but they rarely admit to knowledge of the term.
Bank Acceptance A draft payable on its maturity date that is accepted for payment by the issuing bank. The beneficiary may request that these drafts be discounted by the issuing bank and the funds (less discount) be paid to the beneficiary.
Bank Credit Credit for banking purposes is represented chiefly by depositors’ checking accounts. The prime significance of bank credit is twofold; bank credit, as checking account credit is in effect money, and bank credit forms the ultimate source of all other forms of credit in use today.
Bank Draft Commonly used by banks when dealing with other banks. It is a draft drawn by one bank to anyone’s order upon another bank.
Bank Holding Company A corporation that owns banks.
Bank Loans Money borrowed from the bank, usually of a short-term nature.
Bank Notes Papers promising a specific amount of money, in gold, to bearers who present them to issuing banks for redemption.
Bank Overdraft Occurs when a check is presented for collection and there are not sufficient funds on deposit to make normal payment.
Bank Reconciliation The analysis that details the items responsible for the difference between the cash balance recorded in the bank statement and the balance of the cash account in the ledger.
Bank Reference Information obtained about a customer from their bank, generally consisting of: how long there has been a banking relationship; what the average balances are; if any loans have been granted; when, why, and how often the account borrows; if there are secured loans and, by what collateral; date of latest financial statement on file with bank; and financial statement highlights.
Bankers’ Acceptance A draft or bill of exchange drawn on or accepted by a bank to pay specific bills for one of its customers when the bills come due.
Banking Day Under Article 4 Bank Deposits and Collection, this is the part of any day in which a bank is open to the public for carrying on substantially all of its banking functions.
Bankruptcy 1. The state of being unable to pay one’s creditors’ claims as they come due;

2. Referred to as the United States Bankruptcy Code. It is found in Title 11 of the United States Code and is referred to as “11 U.S.C. Š
___”. The Bankruptcy Code became effective October 1, 1979.

Bankruptcy Fraud Misconduct by a person or entity involved in or contemplates being involved in a formal bankruptcy proceeding.
Bankruptcy Proceedings The last resort for insolvent or distressed debtors.
Barrier to Entry Any impediment that prevents new firms from competing on an equal basis with existing firms in an industry.
Barter The direct exchange of goods for another without the use of money.
Barter System An economic system in which two parties trade certain goods or services that each needs to survive.
Base Year A reference year against which other years are measured.
Basic Corrective Action Determining how and why performance deviated and correcting the source of deviations.
Basis Points Refers to the yield on bonds. Each percentage point of yield in a bond equals 100 basis points. E.g., if a bond yield changes from 7.25% to 7.39%, that is a rise of 14 basis points.
Batch Processing Transaction processing in which transactions are gathered and stored for later execution.
BCG Matrix (Developed by the Boston Consulting Group) Strategy tool to guide resource allocation decisions based on market share and growth of strategic business units (SBU’s).
Bearer The person in possession of an instrument, document of title, or security payable to bearer or endorsed in blank.
Bearer Form A security is in bearer form when it runs to bearer according to its terms and not by reason of any endorsement.
Behavior The actions of people.
Behavior Science Theorists Psychologists and sociologist who rely on the scientific method for the study of organizational behavior.
Behavior Theories Theories identifying behaviors that differentiate effective from ineffective leaders.
Behavioral Component of an Attitude An intention to behave in a certain way towards someone or something.
Benchmarking 1. The search for the best practices among competitors or non-competitors that lead to their superior performance;

2. The process of determining one’s performance in relation to the “Best In Class.” Benchmarking consists of five phases: planning, analysis, integration, action and maturity. It is an important element of the quality process for improving performance.

Beneficiary 1. A person for whose benefit a trust, an insurance policy, a will, or a contract promise is made;

2. A person who is entitled under a letter of credit to draw or demand payment.

Beneficiary of a Letter of Credit The party due payment in the letter of credit.
Benefits Rewards available to an employee or group of employees as a part of organizational membership.
Benefits Portability Allows employees to move their pension benefits rights from one employer to another.
Bequest A gift of personal property by will.
Best Possible Days Sales Outstanding (BPDSO) An expression of the effect of sales terms on the operating cycle of the business. This calculation differs from DSO in that it only uses current A/R. Theoretically, BPDSO should somewhat correlate with standard selling terms.
Best Practices The procedures and policies that allow a business to outperform all other in a particular business process.
Betterment An expenditure that increases operating efficiency or capacity for the remaining useful life of a plant or asset.
Bias Systematic inaccuracy in data due to characteristics of the process of creating, collecting, processing, or presenting the data.
Bid An offering of money in exchange for property placed for sale.
Bid Purchasing A policy of requesting bids from several vendors and selecting the most attractive one.
Bilateral Contract One containing mutual promises with each party being both a promissor and a promisee. E.g. Y promises to wash X’s car on Tuesday. X promises to pay Y $15 if the car is washed on Tuesday. The two promisse’s are a bilateral contract.
Bill of Exchange A written order, which may be negotiable or non-negotiable, directing one party to pay a certain sum of money to him or to a third person.
Bill of Lading A document evidencing the receipt of goods for shipment, issued by a person engaged in the business of transporting or forwarding goods.
Bill of Materials A list of all the materials required to manufacture a product.
Bill of Particulars In legal practice, a written statement that one party to a lawsuit gives another, describing in detail the elements upon which the claim of the first party is based.
Bill of Sale Written evidence that the title to personal property has been transferred from one person to another.
Billing Cycle A period of time from one statement to the next, usually one month.
Binding Arbitration Negotiation in which both parties in a union/management dispute, agree to accept an impartial observer’s resolution of the dispute.
Bit Binary digit; see “byte”
Bits Per Second Measure of the speed of electronic data transmission.
Blank Indorsement (Endorsement) An indorsement which consists only of the signature of the indorser and does not state in whose favor it is made.
Bleed Out The intentional act of driving a company into insolvency in order to extract as much of the assets as possible from the company for the use of the operator(s). A term used by “underworld operators” but they rarely admit to knowledge of the term. Refers to the type of bustout in which the assets are drained from an existing company.
Board of Governors The main Federal Reserve System’s policy making body, which is made up of seven members.
Bodily Injury Liability Motor vehicle insurance that pays court awarded damages for bodily injury, up to the face value of the policy, if the injured person is judged liable for a motor vehicle accident.
Bona Fide In good faith.
Bona Fide Purchaser One who buys property without knowledge or notice of the interest in it of a third party.
Bonafide Occupational Qualifications (BFOQ) A legitimate reason why an employer can exclude persons on an otherwise illegal basis for consideration.
Bond 1. A promise under seal to pay money. The term generally designates the promise made by a corporation to pay money to bearer;

2. An IOU or promissory note issued as evidence of long-term indebtedness and a future promise to pay.

Bond Indenture A blanket agreement between a corporation and its bond holders that states the interest rate, maturity date, and other terms and conditions of the bond issue.
Bond Warehouse A federally approved warehouse under bond for the strict observance of the revenue laws; used for storing goods until duties are paid or otherwise properly released.
Bond Yield The percentage return that the investor will receive.
Book Value of Common Stock The amount per share that stockholders would theoretically receive if a company’s assets were sold on the balance sheet date.
Book Value of the Asset The difference between a plant asset account and its related accumulated depreciation account.
Bookkeeper A clerical worker who maintains the financial records that an accountant shapes into usable information.
Boot The balance owed the supplier when an old asset is traded for a new asset.
Bottleneck A condition that occurs when product demand exceeds production capacity.
Bounded Rationality Behavior that is rational within the parameters of a simplified model that captures the essential features of a problem.
Boycott A refusal to do business with a given party until certain demands are met.
Brainstorming An idea-generating process that encourages alternatives while withholding criticism.
Brand A name, symbol, design, or a combination of these that identifies a product or services of a company.
Breach of Contract Breaking a promise or not fulfilling an agreement to carry out a contractual responsibility.
Breach of Warranty An infraction of an agreement as to the quality, title, content or condition of a thing sold; may also be a failure to perform as promised.
Break-Even Analysis A method of determining the number of units that must be sold at a given price to recover cost and make a profit.
Break-Even Point The point at which sales revenue equals total cost.
Break-Even Volume Volume level at which a corporation reaches its break-even point, measured by the total fixed costs divided by the contribution margin per unit.
Bretton Woods Agreement An agreement signed by the major trading countries following WWII, which returned the world economy to a type of gold standard.
Brief A written or printed document, letter, or statement prepared by an attorney to serve as the basis of an argument in a pending case in court and usually filed for the information of the judge in a court hearing.
Broker A person employed to make contracts with third persons on behalf of his principal.
Budget 1. An outline of a business’s future plans, stated in financial terms;

2. A numerical plan for allocating resources to specific activities.

Budget Deficit Amount by which government spending for the year exceeds government revenues.
Budget Types See “capital expenditure budget, cash budget, expense budget, fixed budget, incremental budget, master budget, profit budget, revenue budget, static budget, variable budget, zero-based budget”
Bug Flaw in a computer program that cause it to produce incorrect or inappropriate results.
Bulk Sales Act Statutes designed to prevent defrauding of creditors in the transfer or sale of a substantial portion or all of the stocks of goods in bulk by a business debtor. Most states require notice of the proposed sale to all creditors in person or by mail. In some states, it is only necessary that the notice of intended transfer be recorded or published. The purpose of such statutes is to try to prevent creditors from being defrauded through a secret sale in bulk of a merchant’s goods, and to permit creditors to take action to protect their interests.
Bulk Transfer Transfer made outside the ordinary course of the transferor’s business, but involving a major part of the materials, supplies, merchandise, or other inventory of an enterprise subject to Article 6 Bulk Transfers.
Bureaucracy A form of organization marked by division of labor, hierarchy, rules and regulations and impersonal relationships.
Bureaus Government agencies charged with implementing legislation and financed by appropriations from legislative bodies.
Business An organization engaged in producing goods and services to make a profit.
Business Credit 1. Arises from a sale of goods by a manufacturer or by a distributor to another manufacturer or retailer;

2. The measure of the ability of a business to secure goods to be used commercially in exchange for a promise to pay at some specific future time.

Business Cycle The rise and fall of economic activity relative to the long term growth trend of the economy.
Business Entity Concept The concept that assumes that accounting applies to individual economic units and that each unit is separate and distinct from the persons who supply its assets.
Business Interruption Insurance Coverage that can be added to a basic fire insurance policy; it covers consequential losses, those that result from fire or other perils covered in the fire policy.
Business Process A collection of activities that takes one or more kinds of input and creates an output that is of value to the customer.
Business Process Reengineering The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed. From Reengineering The Corporation; A Manifesto For Business Revolution, Michael Hammer and James Champy
Business Risk The possibility that a company will not be able to meet ongoing operating expenditures.
Business Systems Planning Technique for outlining a firm’s information architecture.
Business Transaction The occurrence of an economic event or a condition that must be recorded in the accounting records.
Business-Level Strategy Seeks to determine how a corporation should compete in each of its businesses.
Bustout The intentional act of driving a company into insolvency in order to extract as much of the assets as possible from the company for the use of the operator(s). A term used by “underworld operators” but they rarely admit to knowledge of the term.
Buy Hedge A hedge created by purchasing a futures contract.
Buy-and-Hold-Strategy An approach to investing which involves holding the securities purchased until maturity.
Buyer Person who buys or contracts to buy goods.
Buyer in the Ordinary Course of Business A person who, in good faith and without knowledge that the sale to him is in violation of the ownership rights or security interest of a third party in the goods, buys in ordinary course, from a person in the business of selling goods of that kind.
Buyout The purchase of a controlling interest (or a controlling percent of shares) of a company’s stock. A leveraged buyout is done with borrowed money.
Bylaws Rules for government of a corporation or other organization.
Byte Eight (8) bits; enough to uniquely identify 256 different characters.

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