Key Terms Flashcards
Accounts Payable
Accounts Payable refers to the obligation a company has to pay its suppliers for goods and services received on credit. It is recorded as a liability on the balance sheet and represents the company’s short-term financial commitments.
AP Aging Reports
AP Aging Reports, or Accounts Payable Aging Reports, are financial statements that categorize a company’s outstanding payables based on the length of time they have been due. These reports help businesses manage their cash flow and identify potential issues with vendor payments.
Balance Sheet
A balance sheet is a financial statement that provides a snapshot of an organization’s assets, liabilities, and equity at a specific point in time. It is used to assess the financial health and stability of a company by showing what it owns and owes.
Cash Flow
Cash flow refers to the movement of money in and out of a business over a specific period. It is a critical indicator of financial health, reflecting the company’s liquidity and ability to meet its obligations.
Cash Flow Statement
A Cash Flow Statement is a financial report that outlines the inflow and outflow of cash within a business over a specific period. It categorizes cash flows into operating, investing, and financing activities, providing valuable insights into the company’s liquidity and overall financial health.
Cost of Sales
Cost of Sales (COS) refers to the direct costs incurred in producing the goods or services sold by a company. This includes expenses such as materials, labor, and manufacturing overhead, which are essential for calculating gross profit and overall profitability.
Cumulative Balance
Cumulative Balance refers to the running total of a financial metric over a specific period, incorporating all prior values. It provides insights into trends and performance by showing how figures accumulate over time, aiding in financial analysis and decision-making.
Current Assets
Current assets are short-term resources owned by a company that can be easily converted into cash within one year. They typically include cash, accounts receivable, inventory, and other liquid assets that are essential for day-to-day operations.
Current Liabilities
Current liabilities are obligations a company must settle within one year or within its operating cycle, whichever is longer. They typically include accounts payable, short-term debt, and accrued expenses, reflecting the company’s short-term financial commitments.
Data Model
A Data Model in Power BI refers to the structured representation of data that allows users to establish relationships between different datasets. It enables efficient data analysis and visualization by organizing data into tables and defining how they interact with one another.
DAX
DAX, or Data Analysis Expressions, is a formula language used in Power Bi, Excel, and other Microsoft tools for data modeling and analysis. It enables users to create custom calculations and aggregations, enhancing data insights and interactive reporting.
Depreciation
Depreciation refers to the systematic allocation of the cost of a tangible asset over its useful life. This accounting process helps businesses match the asset’s expense with the revenue it generates, reflecting its declining value over time.
Dimension Table
A dimension table is a structure in a data warehouse that categorizes and describes data attributes related to facts in a fact table. It typically contains descriptive information, such as names or dates, that can be used to filter and group data for analysis and reporting in tools like Power BI.
Dynamic Reference
Dynamic Reference in Power BI allows users to create flexible formulas that automatically update when the underlying data changes. This functionality ensures that reports and dashboards reflect real-time information, enhancing accuracy and decision-making. This functionality ensures that reports and dashboards reflect real-time information, enhancing accuracy and decision-making.
Earnings Before Tax
Earnings Before Tax (EBT) refers to a company’s net earnings before income tax expenses are deducted. It provides insight into a ompany’s profitability and operational efficiency, serving as an important indicator for investors and financial analysts.
Expenses
Expenses refer to the costs incurred by a business in the process of generating revenue. They are critical for assessing profitability and are typically categorized into operating and non-operating expenses.
Fact Table
A fact table is a central table in a data warehouse that stores quantitative data for analysis. It typically contains metrics, measurements, and foreign keys to dimension tables, allowing for complex queries and reporting in tools like Power BI.
Financial Ratios
Financial ratios are quantitative metrics used to assess a company’s financial performance by comparing different financial statement items. They provide insights into profitability, liquidity, efficiency, and solvency, helping stakeholders make informed decisions.
Gross Profit
Gross Profit is the difference between a company’s revenue and its cost of goods sold (COGS). It measures the profitability of a company’s core business activities before accounting for operating expenses, taxes, and other costs.
Income Statement
An income statement is a financial report that summarizes a company’s revenues, expenses, and profits over a specific period. It provides insight into the company’s financial performance, helping stakeholders assess profitability and operational efficiency.
Inventory
Inventory refers to the goods and materials a business holds for sale or production purposes. It is a crucial asset that affects a company’s cash flow and overall financial performance.
Measure
A Measure in Power Bl is a calculation used to analyze data, often created using Data Analysis Expressions (DAX). Measures are dynamic and can change based on the context of the data being examined, allowing for flexible insights in financial reporting.
Net Income
Net Income is the total profit of a company after all expenses, taxes, and costs have been deducted from total revenue. It is a critical measure of financial performance, indicating how much money a company has earned over a specific period.
Operating Margin Ratio
The Operating Margin Ratio measures a company’s operating income as a percentage of its revenue, highlighting the efficiency of management in controlling costs. It indicates how much profit a company makes from its operations before interest and taxes, providing insight into its operational profitability.
