A 14. Audit Trail: A chronological 27.

Capitalization: The process

record of system activities that of expensing the cost of an
1. Absolute change: The total can be used to trace asset over its useful life.
difference between an old and a transactions and identify
new value. potential errors or fraud. 28. Car Loan: A loan used to
purchase a car.
2. Accounting: The process of B
recording, classifying, 29. Cash: Currency and coins.
summarizing, analyzing, and 15. Bad Debt: A debt that is
interpreting financial unlikely to be collected. 30. Cash Basis Accounting: An
transactions. accounting method that
16. Bankruptcy: A legal process recognizes revenue and
3. Accounting Skills: The through which a person or expenses when cash is received
abilities to apply accounting business is relieved of their or paid.
principles and techniques to financial obligations.
financial data. 31. Cash Flow: The movement
17. Bookkeeping: The of money into and out of a
4. Accounts Payable: Money recording of financial business.
owed by a company to its transactions.
suppliers for goods or services 32. Cashier: A person who
received but not yet paid for. 18. Borrowers: Individuals or handles cash transactions.
organizations that borrow
5. Accounts Receivable: Money money. 33. Chart of Accounts: A list of
owed to a company by its all the accounts used in a
customers for goods or services 19. Break-even: The point at company's accounting system.
delivered but not yet paid for. which total revenue equals total
cost. 34. Checking Accounts: Bank
6. Acquisitions: The purchase of accounts that allow for
one company by another. 20. Broker: An individual or withdrawals and deposits.
firm that acts as an
7. Accrual Accounting: An intermediary between buyers 35. Collateral: Assets pledged as
accounting method that and sellers. security for a loan.
recognizes revenue and
expenses when they are earned 21. Budget: A financial plan 36. Collateral Trust Bond: A
or incurred, regardless of when that outlines expected income bond secured by collateral
cash is received or paid. and expenses over a specific owned by the issuer.
period.
8. Allocation: The process of 37. Commercial Papers: Short-
distributing resources or 22. Business Environment: The term unsecured promissory
assigning costs to specific items external factors that influence a notes issued by corporations.
or activities. business's operations, such as
economic, social, and political 38. Common Stock: A type of
9. Amortization: The gradual conditions. equity security that represents
reduction of a loan balance ownership in a corporation.
through regular payments. C
39. Company: A legal entity
10. Analysis: The process of 23. CFO: Chief Financial Officer, formed to conduct business.
breaking down a complex topic a high-level executive
or problem into smaller parts to responsible for managing a 40. Contractual Obligations:
gain a better understanding. company's finances. Legal agreements to perform
specific actions.
11. Anti-Money Laundering 24. Callable bond: A bond that
(AML): A set of procedures, can be redeemed by the issuer
laws, and regulations designed before its maturity date.
to prevent money laundering
and terrorist financing. 41. Convertible Bond: A bond
that can be converted into
12. Association: A group of shares of common stock.
people or organizations with a
shared interest. 42. Corporation: A legal entity
25. Capital: Financial assets, separate from its owners.
such as cash or investments,
used to start or grow a business. 43. Credit: An entry on the right
side of an account, increasing a
13. Audit: A formal examination 26. Capital market: A market liability or equity account.
of financial records to ensure where long-term securities,
accuracy and compliance with such as stocks and bonds, are 44. Creditors: Individuals or
accounting standards. traded. organizations to whom a
company owes money.
45. Current Asset: An asset 62. Financial Instrument: A 79. Hedge Fund: A private
expected to be converted to contract that has a financial investment fund that uses
cash within one year. value. advanced investment strategies.
46. Current Liability: A debt 63. Financial Manager: A 80. Home Loan: A loan used to
that must be paid within one person responsible for purchase a home.
year. managing a company's finances.
I
47. Customers: Individuals or 64. Financial Planning: The
businesses that purchase goods process of creating a financial 81. Impairment: A reduction in
or services. plan. the value of an asset.
D 65. Financial Reporting: The 82. Income Statement: A
process of communicating financial statement that shows
48. Debenture Bond: An financial information to a company's revenues and
unsecured bond backed only by stakeholders. expenses.
the issuer's creditworthiness.
66. Financial Scandal: A major 83. Incorporation: The process
49. Debit: An entry on the left financial wrongdoing. of forming a corporation.
side of an account, increasing
an asset or expense account. 67. Financial Security: A 84. Inflation: A general increase
product that provides financial in prices over time.
50. Depreciation: The gradual protection.
reduction in the value of an 85. Intangible Asset: A non-
asset over time. 68. Financial Statement: A physical asset, such as a patent
formal record of a company's or trademark.
51. Depreciation Expense: The financial activities.
systematic allocation of the cost 86. Interest rate: The cost of
of a tangible asset over its 69. Financial System: The borrowing money.
useful life. system that facilitates the flow
of money and credit. 87. Inventory: Goods held for
52. Discount: A reduction in sale.
price. 70. Financial institutions:
Organizations that provide 88. Investing: The act of
E financial services. committing money or capital to
an endeavor with the
53. Embezzlement: The theft of 71. Fiscal Year: A 12-month expectation of gain.
funds by an employee. period used for accounting
purposes. 89. Issuance: The act of issuing
54. Employees: People who securities.
work for a company. 72. Fixed Asset: A long-term
asset, such as land or buildings.
55. Entity: A separate legal or
accounting unit. 73. Fraud: Intentional deception
for personal gain.
56. Entry: A record of a financial
transaction. J

G 90. Journal Entry: A record of a

financial transaction in a
journal.
57. Equity: The ownership 74. Gain: An increase in value.
interest in a company. L
75. General Ledger: A principal
58. Error: A mistake in a book of account.
calculation or recording. 91. Lease: A contract granting
the right to use property for a
76. General public: The specific period.
59. Exchange Rate: The rate at population as a whole.
which one currency can be 92. Ledger: A book containing
exchanged for another. 77. Government: The governing accounts.
authority of a country or state.
60. Expenditure: The spending 93. Lenders: Individuals or
of money. 78. Gross Profit: The difference organizations that lend money.
between revenue and the cost
61 Expenses: Costs incurred in of goods sold.
generating revenue. 94. Lending: The act of lending
money.
H.
F 95. Liability: A debt or
obligation.
96. Liquidity: The ability to O S
convert assets into cash quickly.
112. Operating Expense: Costs 127. Savings: Money set aside
97. Loan: A sum of money lent incurred in the normal course of for future use.
to someone. business operations, such as
rent, utilities, and salaries. 128. Savings account: A bank
98. Long-Term Debt: Debt that account that earns interest.
matures in more than one year. P
129. Secured bond: A bond
M 113. Partnership: A business backed by collateral.
organization owned by two or
99. Macro-environment: The more people. 130. Serial bond: A bond issue
broad external factors that that matures in installments
affect a business. 114. Payment: The act of paying over a period of time.
money.
100. Management: The process 131. Shareholders: Owners of a
of planning, organizing, leading, 115. Petty Cash: A small amount corporation.
and controlling resources to of cash kept on hand for minor
achieve organizational goals. expenses. 132. Sole proprietorship: A
business owned by one person.
101. Margin: The difference 116. Preferred Stock: A type of
between the cost of a good or equity security that has priority 133. Stock: A type of security
service and its selling price. over common stock in terms of that represents ownership in a
dividends and claims on assets. corporation.
102. Maturity: The date on
which a debt or investment 117. Profit: Is the financial gain 134. Stockholders: Owners of a
becomes due. or surplus remaining after corporation.
subtracting total expenses,
103. Maturity date: The date on costs and taxes from total 135. Suppliers: Businesses that
which a debt or investment revenue or sales. provide goods or services to
matures. other businesses.
118. Proportional Component:
104. Money market: A market A part of a whole that is in
for short-term debt proportion to another part.
instruments.
119. Public-Private Partnership:
A cooperative arrangement
between a public sector agency 136. System: A set of
and a private sector entity. interconnected parts that work
together to achieve a goal.
R
N T
120. Receipt: A written
105. Net Worth: The value of a acknowledgment of payment. 137. Tax: A compulsory charge
person's assets minus their levied by a government on
liabilities. 121. Reconciliation: The individuals or businesses.
process of comparing two sets
106. Net income: The profit or of records to ensure they agree. 138. Term bond: A bond that
loss of a company. matures on a specific date.
122. Remittances: The transfer
107. Net Profit Margin: The of money, typically from one 139. Time Deposits: Deposits in
percentage of net income country to another. a bank account that have a fixed
relative to revenue. term and interest rate.
123. Resources: Assets or
108. Net sales: Total revenue capabilities that can be used to 140. Trading securities:
minus returns and allowances. achieve a goal. Securities bought and sold
frequently for short-term profit.
109. Non-current Liability: A 124. Retained Earnings: The
debt that is not due within one portion of a company's profits 141. Transactions: Business
year. that is not distributed to dealings or exchanges.
shareholders as dividends.
110. Non-Current Asset: An 142. Treasury bills: Short-term
asset that is not expected to be 125. Revenue: Income debt obligations issued by the
converted to cash within one generated from a business's U.S. government.
year. operations.
U
111. Notes: Written promises to 126. Risk: The possibility of loss
pay a debt. or harm. 143. Unit Cost: The cost per unit
of a product or service.
V
144. Value-added Tax (VAT): A
tax added to the price of goods
and services at each stage of
production.
145. Variable Cost: A cost that
changes in proportion to the
level of production.
W
146. Warranty Expense: The
cost of repairing or replacing
defective products.
147. Withholding Tax: A tax
withheld from an employee's
paycheck and paid to the
government.
148. Working Capital: The
difference between a
company's current assets and
current liabilities.
Y
149. Yield: The rate of return on
an investment.
Z
150. Zero-Based Budgeting: A
budgeting method that starts
with a zero base and requires
justification for all expenditures.