2025-02-03T14:50:08+03:00[Europe/Moscow] en true <p>Accounting period </p>, <p>Sales turnover or revenues</p>, <p>Income statement </p>, <p>Costs </p>, <p>Variable costs</p>, <p>Fixed costs</p>, <p>Other terms for costs </p>, <p>Direct costs</p>, <p>COGS</p>, <p>Gross profit</p>, <p>Net profit</p>, <p>Cash flow </p>, <p>Cash flow forecast</p>, <p>Cash flow statement </p>, <p>Positive cash flow</p>, <p>Negative cash flow</p>, <p>Balance sheet </p>, <p>Balance sheet formula </p>, <p>Fixed assets </p>, <p>Current assets </p>, <p>Fixed assets </p>, <p>Depreciation</p>, <p>Current liabilities </p>, <p>Long term liabilities </p>, <p>Retained profit </p> flashcards

Financial Terms (Glossary)

List of financial terms and their definitions. Edit the flashcards to update.

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  • Accounting period

    The timeframe of the set of accounts to be reported on.

  • Sales turnover or revenues

    The money that comes into a business as a result of trading activities such as selling products or services.

  • Income statement

    Financial document that includes the income and expenditure of the business to see if it is profitable or not for an accounting period.

  • Costs

    Expenses or expenditures. Basically, money going out and getting spent to keep the business going.

  • Variable costs

    Cost that changes along with the number of units. Example : Raw materials and packaging. F

  • Fixed costs

    Costs that is independent from the number of units.

  • Other terms for costs

    expenses, overheads, expenditures

  • Direct costs

    Costs that can be attributed to the production of a product or service.

  • COGS

    Other term for direct costs.

  • Gross profit

    Profit of the business after direct costs are taken away but before taxes and dividends are paid.

  • Net profit

    Profit of the business after all costs are taken away.

  • Cash flow

    Financial document that shows the total amount of money being transferred into and out of the business.

  • Cash flow forecast

    Predicts potential cash flow in the future based on financial objectives.

  • Cash flow statement

    A record of actual money transfer activities that demonstrates the real cash flow position of the business in an accounting period.

  • Positive cash flow

    Business has money in the bank.

  • Negative cash flow

    Business has debt or overdraft situation.

  • Balance sheet

    Snapshot of all assets, liabilities, and capital of a business showing the income and expenses at the end of the accounting period.

  • Balance sheet formula

    Assets = Liabilities = shareholders'/overns' equity.

  • Fixed assets

    Long terms assets with a useful life for more than one year.

  • Current assets

    Short-term assets expected otherwise be used in one year and is used in day-to-day operations.

  • Fixed assets

    Least liquid asses as they take longer to turn into cash.

  • Depreciation

    The loss of value of an asset.

  • Current liabilities

    Short term liabilities. Creditors that must be paid in a year.

  • Long term liabilities

    Creditors paid after more than one year.

  • Retained profit

    Amount of net profit kept in the business other than be reinvested rather than distributes to the owners or shareholders as dividends.