Finance Glossary
Finance Glossary
20 terms
The following glossary will help you better understand certain words used in finance. The goal of this glossary is to learn new words which will allow you to reuse them later in your field, that of finance.
- account
- A record or statement of financial expenditure or receipts relating to particular period or purpose.
- bank loan
- Money borrowed from a bank.
- breakeven point
- The point at which the income from sale of a product or service equals the invested costs, resulting in neither profit nor less, the stage at which income equals expenditure.
- budget
- An estimate, often itemized, of expected income and expense for a given period in the future.
- capital account
- The part of the balance of payments recording a nation's outflow and inflow of financial securities.
- cash flow
- The total amount of money being transferred into and out of a business, especially as affecting liquidity.
- credit
- The deduction of a payment made by a debtor from an amount due.
- debt
- Something, typically money, that is owed or due.
- discount
- A deduction from the usual cost of something.
- fixed costs
- A periodic cost that remains more or less unchanged irrespective of the output level or sales revenue, such as depreciation, insurance, interest, rent, salaries, and wages.
- free cash flow
- The amount of cash that the company has left over after it has paid all of its expenses, including investments.
- gross income
- Receipts and gains from all sources less the cost of goods sold.
- investment
- The action or process of investing money for profit.
- loan
- A sum of money borrowed and expected to be paid back with interest.
- margin
- The difference between a sale price and a cost.
- net earnings
- The total revenue in an accounting period minus all expenses during the period.
- prime cost
- The direct cost of a commodity in terms of the materials and labor involved in its production, excluding fixed cost.
- profit
- A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
- real estate
- Property consisting of land or buildings.
- stock
- The capital raised by a business or corporation through the issue and subscription of shares.