- 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 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 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 5 rules in finance?
Basic financial planning can be covered in five simple blocks: Savings, investment, tax planning, medical expenses and life protection .
What are the basic terms of 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 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 six financial principles?
There are six foundational principles that can be used to study finance: money has a time value; the higher the reward, the greater the risk ; diversification of investments can reduce overall risk; financial markets are efficient in pricing securities; a manager’s and stockholders’ objectives may differ; and reputation ...
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 is finance example?
They are activities that involve the inflow or outflow of money. Examples include buying and selling products (or assets), issuing stocks, initiating loans, and maintaining accounts . When a company sells shares and makes debt repayments, these are both financial activities.
What are the two main types of finance?
Financing is the process of funding business activities, making purchases, or investments. There are two types of financing: equity financing and debt financing .
What does 1h21 stand for?
Acronym. Definition. 1H. First Half (of the year) 1H.
What is LOF finance?
Letter Of Offer. LOF. Life of Fund (finance) LOF.
What is money spent called?
An expenditure is money spent on something. Expenditure is often used when people are talking about budgets.
What is your financial condition?
Financial health is a term used to describe the state of one’s personal monetary affairs . There are many dimensions to financial health, including the amount of savings you have, how much you’re putting away for retirement, and how much of your income you are spending on fixed or non-discretionary expenses.
What is the first rule of finance?
The first rule of financial independence states that you should never lose money on your path to financial independence , especially after achieving financial independence. If you lose 50% of your net worth, you need a 100% gain to get back to even.
How can I finance money?
- Create a Financial Calendar. ...
- Check Your Interest Rate. ...
- Track Your Net Worth. ...
- Set a Budget, Period. ...
- Consider an All-Cash Diet. ...
- Take a Daily Money Minute. ...
- Allocate at Least 20% of Your Income Toward Financial Priorities. ...
- Budget About 30% of Your Income for Lifestyle Spending.
