Financial Terms Flashcards
Balance Sheets
Statement of assets, liabilities & capital of organisation
Details balance of income & expenditure
Capital Budget
Allocating money for aquistion or maintenance of fixed assets
E.g land, buildings & equipment
Cash Flow
Total amount of money transferred in & out of business
Corporation Tax
Tax on company profits
Known as: Invoice Factoring
Debt Factoring
Selling your outstanding invoices to an external company
Financial Conduct Authority
(FDA)
Responsible for regulation & oversight of financial markets & financial service firms in the UK
Gross Profit
Profit after deducting costs associated with making/selling product or service
Net Profit
Actual profit after working expenses not included in gross profit have been deducted
Profit & Loss Account
Account showing credits/debits, showing net profit & loss over time period
Investment Account
Trading Account
Contains cash & securities holdings of an investor
Commonly used by day traders. High transaction volumes
Pay as you Earn
(PAYE)
Employer deducts income tax from wages before paying employee
Employer sends tax to government
Used by sales teams
Quantitative Financial Forecasting
Data-based process to understand performance & predict future revenue
Based on historical data & patterns
Expenses
Money spent in pursuit of profit
Budget
An approved plan to spend a certain amount of money in a given fiscal year or project period
Purchase Orders
A signal of intent to buy, from a purchaser to a vendor, in the procurement process
