Terms
U
uncertainty: as used by economists, the
situation where not only is the exact outcome unknown, but
the range of outcomes and/or their probabilities of occurring
are also unknown
Uncovered (Naked) Option: A written option
position that does not have a corresponding position in
the underlying stock.
underemployed-Workers who hold a part-time
job but prefer to work full time or hold jobs that are far
below their capabilities.
underground markets: markets for goods
and services that are illegal, or where legal goods and
services are sold in an illegal way
Unearned revenue: A liability caused by
receipt of cash in advance of earning revenue.
Uniform Bank Performance Report: A standardized
document for insured banks that includes a balance sheet,
income statement, financial ratios, peer group comparisons,
and other analytical data.
Units-of-production method: An accounting
method under which depreciation expense is based on actual
usage.
Unqualified opinion with explanatory language:
An opinion rendered by an independent auditor of financial
statements stating that the financial statements have been
presented fairly in accordance with generally accepted accounting
principles, but there are items which the auditor wishes
to explain to the user.
Unqualified opinion: An opinion rendered
by an independent auditor of financial statements stating
that the financial statements have been presented fairly
in accordance with generally accepted accounting principles.
unrealized capital gain: an increase in
the value of an asset that has not been "realized"
by the asset's owner, because the asset has not been sold
Unrealized gains (losses) on marketable equity securities:
The gains (losses) disclosed in the equity section resulting
from the accounting rule that requires investments in marketable
equity securities to be carried at the lower of cost or
market value.
unsecured debt: debt that is not backed
by collateral.
unsystematic risk: Risk that is unique
to an individual, company, or industry.
use right: gives an owner the right to
use or control something, but not necessarily to sell the
property or give it away
util: an imaginary unit in which utility
is measured
utility function: a curve showing the relation
of utility levels to consumption levels
utility: pleasure or satisfaction derived
from goods, services, or events
