These principles are the rules by which accounting is applied to all types of businesses.
What are Generally Accepted Accounting Principles?
100
Typically the largest & highest-earning asset in a credit union.
What are loans?
100
This ratio measures the health of the loan portfolio.
What is delinquent loans to total loans?
100
This committee is responsible for reporting to the board of directors the results of the ALM review.
What is ALCO?
100
This item is typically the largest liability item on a credit union's books.
What are shares?
What are member savings?
200
This ratio describes the credit union's net income as a percentage of average assets
What is Return on Assets? (ROA)
200
These are considered earning assets.
What are loans & investments?
200
This ratio shows the degree to which member deposits have been loaned to members.
What is the loan to share ratio?
200
The difference between rate sensitive assets and rate sensitive liabilities.
What is GAP?
200
This type of share has a stated maturity.
What are certificates of deposit?
300
This organization governs the credit union's requirements to make sure they are not doing business with terrorists
What is the Office of Foreign Asset Control? (OFAC)
300
These are considered non-earning assets?
What are fixed assets?
What is accrued income?
What are prepaid expenses?
300
This ratio describes how much the credit union makes on the spread between the yield on earning assets and the cost of funds.
What is net interest margin / average assets?
300
This measure compares the value of assets and liabilities based upon current and forecasted interest rate environments.
What is NEV? (Net Economic Value)
300
This item represents the amount of money that a credit union owes its' members but has yet to be paid.
What is accrued dividends?
400
This internal rating system is used for evaluating the soundness of a credit union on a uniform basis and to help identify those institutions that may require special supervisory attention or concern.
What is CAMEL?
400
This accounting practice is the process of spreading the cost of a non-earning asset over mulitiple periods in which they are used.
What is depreciation?
400
What index at Focus FCU measures both delinquent loans and charges offs as a single measure?
What is the misery index?
400
This test is designed to help a credit union understand the possible decrease in earnings and capital when interest rates rise and fall.
What is a shock test?
400
The only source of credit union capital.
What are the earnings generated by the credit union's operations?
500
This acronym is short for the general ledger account used to reserve money that may not be repaid for loans.
What is ALLL? (Allowance for Loan & Lease Losses)
500
This ratio dictates the health of a credit union's operational earnings.
What is Return on Asset? (ROA)
500
.8 or better is considered a healthy ratio in this measurement, according to the NCUA.
What is Return on Asset? (ROA)
500
This risk is associated with having either too much cash or not enough cash.
What is liquidity risk?
500
This is the biggest direct impact on the capital positon of a credit union.