What are the basic terms in finance?
What are the basic terms in finance?
Finance – money used to fund a business or high value purchase. Financial year – a 12-month period typically from 1 July to 30 June. Financial statement – a summary of a business’s financial position for a given period. Financial statements can include a profit and loss, balance sheet and cash flow statement.
What’s a finance term?
Finance is a broad term that describes activities associated with banking, leverage or debt, credit, capital markets, funds, and investments. Basically, finance represents the getting, the spending, and the management of money.
What does R12 mean in finance?
Return Code (R12) – Account now at a branch sold to another financial institution.
What is basic accounting term?
Accounting — the process of recording, assessing, and communicating financial transactions — helps individuals and organizations understand their financial health. Accountants do this work by keeping track of expenses, profits, and losses, making use of this accounting formula: Assets = Liability + Equity.
What are the accounting terminologies?
General Ledger – Record of all financial transactions across all of a company’s accounts, which is maintained continuously for the entire life of the company. Income Statement – All outstanding debts owed by the company. This could include accounts payable, loans, liens on property or other long-term investments.
What is P&L in accounting?
The term profit and loss (P&L) statement refers to a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a quarter or fiscal year.
What are key financial terms?
Accounts payable – a record of all unpaid short-term (less than 12 months) invoices,bills and other liabilities.
What are common finance terms?
Common Finance Terms. Interest: The finance charge associated with your loan, usually expressed as a percentage. Lease: When a dealership lends a car to a person for a negotiated period of time and amount of money. MSRP: The price at which the manufacturer suggests the dealership should sell a new car.
What are financing terms?
The financing terms for long term loans are for periods of time that are greater than a year. Among the short term financing means are bank loans, bank overdrafts, trade credit, and leasing.
What does finance term mean?
Definition of finance. 1 finances plural. : money or other liquid resources of a government, business, group, or individual. The library closed due to a lack of finances.
