AMORTIZATION
This is the reduction of principal or debt by regular payments. Amortization can also be achieved via a purchase or sinking fund.
BALANCE SHEET
A financial statement of a company’s assets and liabilities. It gives a snapshot at a specific point in time of the assets the company holds and how they have been financed.
A financial statement of a company’s assets and liabilities. It gives a snapshot at a specific point in time of the assets the company holds and how they have been financed.
CASH FLOW
It is a revenue stream calculated by subtracting cash receipts from cash payments for a given period.
It is a revenue stream calculated by subtracting cash receipts from cash payments for a given period.
DEPRECIATION
Depreciation is the loss in value of an asset as a result of usage, the passage of time, or obsolescence. Depreciation is applied only to tangible assets, such as property and machinery.
Depreciation is the loss in value of an asset as a result of usage, the passage of time, or obsolescence. Depreciation is applied only to tangible assets, such as property and machinery.
EQUITY
Equity is the stake that shareholders have in a company. This shareholders equity is calculated by subtracting total liabilities from total assets.
Equity is the stake that shareholders have in a company. This shareholders equity is calculated by subtracting total liabilities from total assets.
INFLATION
Inflation is a persistent rise in the prices of goods and services. It is greatly affected by the rule of supply and demand.
Inflation is a persistent rise in the prices of goods and services. It is greatly affected by the rule of supply and demand.
INTEREST
Interest is the percentage of the sum of borrowed money, charged to the borrower for its use. Payment of this sum are scheduled over a period of time.
Interest is the percentage of the sum of borrowed money, charged to the borrower for its use. Payment of this sum are scheduled over a period of time.
LIABILITY
All financial claims, debts or potential losses against or incurred by an individual or an organisation.
All financial claims, debts or potential losses against or incurred by an individual or an organisation.
PRINCIPAL
The total amount borrowed or invested.
The total amount borrowed or invested.
PROFIT MARGIN
Profit as a percentage of sales or capital. Profit margins can be gross i.e. before tax or other charges, or net i.e. after tax or other charges.
Profit as a percentage of sales or capital. Profit margins can be gross i.e. before tax or other charges, or net i.e. after tax or other charges.
REVENUE
The income earned from the sale of goods or services by a company in a given period.
The income earned from the sale of goods or services by a company in a given period.
SHAREHOLDER
An individual or financial institution that holds shares or stock in an organization or company.
An individual or financial institution that holds shares or stock in an organization or company.
WORKING CAPITAL
The resource that a company uses to finance day-to-day operations
The resource that a company uses to finance day-to-day operations