TECFEE flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Percentage point

The arithmetic difference between two percentages. A rate moving from 4% to 6% rises two percentage points but 50% in relative terms, so the unit must always be stated.

Hedging language

Words such as approximately, roughly, or in the region of that mark a figure as an estimate rather than a reported actual. Listening and reading items test whether the candidate keeps that distinction.

Recap signal

A phrase like to summarise or before I hand over that announces a restatement of key figures. The restated value is usually the one tested because it is the speaker's final position.

Fiscal versus calendar year

A fiscal year is any twelve-month reporting period chosen by the entity; a calendar year runs January to December. Reporting-period questions are answered by whichever the speaker or text names.

Negative polarity

Constructions such as not unlike, hardly certain, or far from complete that invert surface meaning. Transcribing the negation before selecting an option prevents the most common listening error.

Scope qualifier

A phrase such as consolidated, standalone, or excluding discontinued operations that defines which entities or periods a figure covers. A correct number under the wrong scope is a wrong answer.

Point-in-time versus flow

Balance-sheet items are stated as of a date; income and cash-flow items cover a period. Reading questions frequently test whether the candidate matched the stem to the right basis.

Footnote cross-reference

A pointer such as see Note 14 that often contains the exception or qualification overturning an answer drawn from the main narrative. Checking it is a decisive reading habit.

Comparator mismatch

The passage compares a figure to forecast while the stem asks about the prior year, or vice versa. The answer must use the comparator named in the question, not the one in the text.

Attribution in reports

Separating management assertions from auditor or regulator statements within the same document. A stem citing the auditors excludes management commentary even when both appear on one page.

Recognise versus disclose

Recognise means record an amount in the primary statements; disclose means report it in the notes. The two have different effects on the face of the financial statements.

Write down versus write off

A write-down reduces the carrying value of an asset to a lower amount; a write-off removes the asset entirely. Both hit profit, but only the write-off eliminates the balance.

Coupon versus yield

The coupon is the fixed rate paid on face value; the yield is the return relative to the current market price. A bond trading below par therefore yields more than its coupon.

Liquidity versus solvency

Liquidity is the ability to meet obligations as they fall due; solvency is having assets in excess of liabilities. A solvent entity can still fail because of a liquidity shortfall.

Shall, may, should

In regulatory and contractual drafting, shall creates an obligation, may grants permission, and should expresses expectation without binding force. Exam items turn on this modal distinction.

Third conditional

A structure such as had the covenant been breached, the loan would have been recalled. It describes a counterfactual, not an event that occurred, and must not be read as fact.

Uncountable financial nouns

Capital, funding, and liquidity take singular verbs and no plural form. Securities is the exception, being the plural of security in the investment sense.

Decision-first memo

A memo structure that states the recommendation in the first paragraph, then the strongest supporting figures, then the risks, so a reader who stops early still has the decision.

Number with basis

Any figure written with its unit, period, and measurement basis attached, for example revenue up 8% year on year on a constant-currency basis. Bare figures are not auditable prose.

Variance explanation triad

A complete variance note names the driver, quantifies its effect, and identifies any offset. Omitting the offset overstates the driver and is the usual weakness in written answers.

Nominalisation

Turning a verb into an abstract noun, as in a decision was made instead of we decided. It obscures who acted and weakens financial writing, so it is removed in revision.

Hedging calibration in writing

Using expected for forecasts, reported for actuals, and indicated for guidance. Applying will to an unaudited projection misrepresents certainty and is a common marking penalty.

Source line

A closing note naming author, date, and data basis, such as unaudited management accounts at 30 June. It makes a memo defensible when figures are later challenged.

Four-part verbal update

Headline result, one driver, one risk, next milestone. The structure keeps a two-minute spoken update inside its time budget and prevents drift into background.

Echo-back clarification

Repeating a figure with its unit and period before commenting, as in so that is 3.1%, annualised, net of fees? It prevents answering the wrong question in a live call.

Register in recommendations

Conventional phrasing such as we are overweight, we initiate at buy, or we see downside to. Using the wrong register signals unfamiliarity with professional investment communication.

Unknown-handling protocol

State what is known, name the missing input, and commit to a time to supply it. Silent estimation in a client conversation is the failure mode this protocol prevents.

Change-my-mind test

Stating in advance what evidence would overturn a recommendation. Including it distinguishes analysis from advocacy and is expected in a spoken defence of a view.

Speaking rate budget

Speech runs at roughly 130 to 150 words per minute, so a 90-second answer is about 200 words. That caps a response at three substantive points.

Billion scale ambiguity

English billion is 10^9 while some conventions use 10^12 for the same word. The target term must be fixed before translating any large monetary figure.

Date disambiguation

Numeric dates such as 03/04/2025 are read as 3 April in most conventions and 4 March in US usage. Target texts should spell the month to remove the ambiguity.

Covenant versus warranty

A covenant is a promise to do or not do something; a warranty is a statement of fact whose breach gives a remedy. Translating both with one generic term destroys the legal distinction.