What Are The Financial Terms?

by | Last updated on January 24, 2024

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  • 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 does terms mean in finance?

Term can have multiple meanings based on context. It can refer to the time period of an investment , the provisions of an agreement or contract, and lifespan assigned to an asset or liability. The term (or maturity) of a product can play a significant role in assessing a security’s riskiness.

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 basic accounting terms?

  • Accounts Payable. Accounts payable refers to the money a business owes to its suppliers, vendors, or creditors for goods or services bought on credit. ...
  • Accounts Receivable. ...
  • Accounting Period. ...
  • Accruals. ...
  • Accrual Basis Accounting. ...
  • Assets. ...
  • Balance Sheet. ...
  • Capital.

What are the basic concepts of finance?

  • Net worth. Net worth is an easy one to start with. ...
  • Inflation. ...
  • Liquidity. ...
  • Bull market. ...
  • Bear market. ...
  • Risk tolerance. ...
  • Asset allocation and diversification. ...
  • Simple Interest.

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 .

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 are the three types of finance?

The finance field includes three main subcategories: personal finance, corporate finance, and public (government) finance .

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.

What are the 5 basic accounting principles?

  • Revenue Recognition Principle,
  • Historical Cost Principle,
  • Matching Principle,
  • Full Disclosure Principle, and.
  • Objectivity Principle.

What are the 5 basic features of accounting?

  • Revenue Recognition Principle. When you are recording information about your business, you need to consider the revenue recognition principle. ...
  • Cost Principle. ...
  • Matching Principle. ...
  • Full Disclosure Principle. ...
  • Objectivity Principle.

What are the 10 accounting terms?

  • Cash Flow. ...
  • Cash-Flow Forecast. ...
  • Marginal Costs. ...
  • Income Sheet. ...
  • Financial Statement. ...
  • Gross and Net Profit. ...
  • Balance Sheet. ...
  • Accrual Accounting.

What is basic financial knowledge?

Basic financial literacy is your knowledge and understanding of money . It’s your ability to recognize, understand, explain, and apply fundamental areas of personal finance. Literacy in finance also means having confidence with and knowing the value of money.

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 six sources of finance?

  • Business angels. Business angels (BAs) are wealthy individuals who invest in high growth businesses in return for a share in the business. ...
  • Venture capital. ...
  • Crowdfunding. ...
  • Enterprise Investment Scheme (EIS) ...
  • Alternative Platform Finance Scheme. ...
  • The stock market.
Ahmed Ali
Author
Ahmed Ali
Ahmed Ali is a financial analyst with over 15 years of experience in the finance industry. He has worked for major banks and investment firms, and has a wealth of knowledge on investing, real estate, and tax planning. Ahmed is also an advocate for financial literacy and education.