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FINANCIAL DICTIONARY & GLOSSARY: FA - FI
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factoring - selling debts or receivables at a discount to someone who will try to collect the debt at full value.

factors of production or inputs - resources used by firms in their production processes, namely land (and the natural resources in it), labor and capital.

factory cost - prime cost (direct material and labor costs) plus overhead (US) or overheads (GB).

fair presentation - what American law requires accounts of a company's financial position to give.

Federal Reserve Board ("The Fed") - the US central bank, made up of a group of twelve regional banks.

fee or fees - money paid to accountants, lawyers, private schools, etc.

fiduciary note issue - paper money (banknotes) that is not backed by reserves of gold.

file for chapter 11 - in the US, to propose a recovery plan and be temporarily protected from creditors and given time to attempt to solve problems.

final goods - goods that have been completed and are ready for sale.

finance - funds and their provision and management; to provide funds.

finance houses - institutions that lend money, at a high interest rate, for hire purchase or installment credit.

financial instruments - all the different ways of raising money, including bonds, shares, warrants, etc.

financial statements - the balance sheet, the profit and loss account (or income statement), the funds flow statement, etc.

financial supermarket - the name given to financial conglomerates arising from recent deregulation.

firm - another word for a partnership or other business.

first-in, first-out (FIFO) - method of inventory valuation that assumes that the goods received first are sold first.

fiscal - relating to government finances (taxation, expenditure, etc.).

fiscal year - an arbitrarily chosen 12-month period for tax purposes.

Fisher equation - MV = PT, where M is money supply, V its velocity of circulation, P the price level, and T the volume of transactions.

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