- Assets. First on the list of financial terms, assets are the economic resources a business has. ...
- Liabilities. ...
- Expenses. ...
- Accounts receivable. ...
- Cash flow. ...
- Cash flow statement. ...
- Profit and loss. ...
- Income statement.
What financial terms mean?
A term is the length of time between when a fixed-income security , such as a bond or note, is offered for sale and its maturity date. ... In general, the longer the term, the higher the rate of interest the investment pays, to offset the increased risk of tying up your money for a longer period of time.
What are the 4 types of finance?
- Cash flow lending. Cash flow loans are usually short-term loans to help you maximise a business opportunity or manage a lumpy cash flow. ...
- Crowdfunding. ...
- Angel investors. ...
- Venture capitalists. ...
- Small business loans.
What are the 3 areas of finance?
The three major areas of business finance are corporate finance, investments and financial markets, and risk management .
What are the basic financial terms?
- Assets. First on the list of financial terms, assets are the economic resources a business has. ...
- Liabilities. ...
- Expenses. ...
- Accounts receivable. ...
- Cash flow. ...
- Cash flow statement. ...
- Profit and loss. ...
- Income statement.
What are the two famous terms in finance?
- Compound interest. Compound interest is interest on the amount of money you have deposited or borrowed. ...
- FICO score. Getty Images. ...
- Net worth. ...
- Asset allocation. ...
- Capital gains. ...
- Rebalancing. ...
- Stock options. ...
- Defined-contribution plans.
What is the purpose of financial report?
The objective of financial reporting is to track, analyse and report your business income . The purpose of these reports is to examine resource usage, cash flow, business performance and the financial health of the business. This helps you and your investors make informed decisions about how to manage the business.
What is LOF finance?
Letter Of Offer. LOF. Life of Fund (finance) LOF.
What are the key terms used in financial analysis?
Key Takeaways
Four terms commonly used in earnings announcements are net income, EBITDA, GAAP, and EPS . News reports also look at how much companies have in free cash flow, total debt, and assets they have available in cash equivalents.
What are the 5 sources of finance?
- Personal Investment or Personal Savings.
- Venture Capital.
- Business Angels.
- Assistant of Government.
- Commercial Bank Loans and Overdraft.
- Financial Bootstrapping.
- Buyouts.
What are the 5 principles of finance?
The five principles are consistency, timeliness, justification, documentation, and certification .
Is finance easier than accounting?
So is Finance harder than Accounting to study? Accounting is a more difficult subject to master than finance . Accounting is more involved, with strict sets of arithmetic rules governing it. Finance requires an understanding of economics as well as some accounting.
What are the 3 major areas of financial management?
There are three broad areas of financial decision making – capital budgeting, capital structure and working capital management .
What is finance example?
Finance is defined as to provide money or credit for something. An example of finance is a bank loaning someone money to purchase a house . verb.
What does act stand for in finance?
The Automated Confirmation Transaction (ACT) Service is an automated reporting service in use by Nasdaq exchanges. Parties such as brokers or market makers are required to enter all trade confirmations into the ACT system for matching and clearing, including trades done over-the-counter.
What is a good guy in finance?
A good guy clause, typically found in rental agreements in New York City, is a provision that allows a tenant to be released from the liability of completing the agreed upon rental period , assuming the tenant vacates the rented space and leaves it in favorable condition.
