Introduction
Financial Terms Hi my dear comrades welcome to finance8844 blogging platform post (1). In these blog I explore about finance related Terms , which are utilized in business, Personal finance and financial management topics.
So let’s take close look into the topic but before that I want to discuss with you one important matter and that is Financial Awareness.
Guys do you say how much you know about financial awareness at present time I mean do you know about how to do savings or do you know about how to do investments in stock market, bonds or mutual funds or do you know about how to do business with financial guidelines.
Incase if you have financial awareness I am happy but if you don’t have financial knowledge you are in danger zone because
Guys Literally I want to say that now a day’s majority of population doesn’t have financial awareness due to this so many people struggling in their life survival
One example
if one person admit in hospital due to major health issue like accident, cancer or heart related problems or anything it will be the treatment cost will high
so in this situation the health insurance will used for that person in case they doesn’t have health insurance That person will face the money problem
So for this emergency purpose every common man should take heath insurance.
because the insurance company will pay hospital bills.
So this kind of problems will happen in society not only in health in other sector also. And following to say that every common man should get financial awareness.
I think you get question mark in your minds but don’t worry Guys I am with you to give complete financial knowledge to you.
Guys so now coming to main topic I will give Finance information from basic to advance stage with complete details from present starting to ending with uploading number of blog post.
Financial Terms
Starting Basic Finance Terms:
1.Revenue:
the revenue means when the companies generate total income from sales before expenses is called revenue.
2. Expenses:
the expenses means when the companies maintain the business by spending budget where giving salaries, paying rents as well as purchasing utilities. This process called as expenses.
3. Profit (Net income):
The profit means when the company do the revenue minus expenses it mean whatever the money get after all removal expenses deducted that money should called profit (Net income).
4. Cash Flow:
the cash flow means when the money movement go in and out to run the business this known as cash flow.
5. Assets:
the assets means when the person or company have their own the value of cash, inventory and properties. This called as Assets.
6. Liabilities:
the liabilities means when the person has value decreased items with her like car or loans which are account payable. These known as liabilities.
7. Equity:
the equity means when the person gets value after liabilities deducting from assets that left over part of value called as equity.
Financial Statements:
8. Balance sheet:
The balance sheet means where giving of financial statement about companies assets liabilities and equity for certain period this called as balance sheet.
9. Income statement (Profit and loss):
the income statement means when the companies show the report of their revenues, expenses and net income for certain period of time this should be named as Income statement.
10. Cash flow statement:
the cash flow statement means when the companies do the tracking of cash inflow and outflows of their business .this known as Cash flow statement.
Terms In investment Valuation:
11. Return on Investment:
The Return of investment means when the companies measures the calculation where
Net profit/investment cost) x100. This known as return on investment.
12. Market Capitalization:
The market capitalization means where the companies representing their total value of shares which is outstanding
(Stock price x Shares outstanding).
13. Liquidity:
the liquidity means when the process of assets should be converted into cash in easy method is known as liquidity.
14. Dividend:
the dividend means when the company divide their some part of earning to their distributors this known as Dividend.
Funding Banking Terms:
15. Capital:
the capital means when the person invested their money in business operations to growth performance.
16. Working capital:
the working capital means when the companies show their short time liquidity where by showing difference between current assets and current liabilities.
17. Interest rate:
the interest rate means when the company or person charged percentage of amount in earned on investment this should called as Interest rate.
18. Loan Amortization:
the loan amortization means when the person paying of loan amounts for regular installments this process called as loan amortization.
Financial Ratios:
19. Current ratio:
the current ratio means where the measuring of company’s standout to pay shorten debts (Current assets / current liabilities).
20. Debt to equity ratio:
the debt to equity ratio means the process where measuring of financial leverages (total liabilities/ shareholders equity).
Financial Terms
Conclusion:
Dear comrades coming to conclusion as we seen that about 20 financial terms which are used in business and financial sector
As well as I want to say this 20 terms are play key role in every business and financial sectors .
Because this are terms you hear when you enter in banking sector, finance related business Sector
And moreover this are basic finance terms which are frequently used by several financial and business related companies.
