No Picture
Financial Terms

Accounting Cycle

The sequence of steps in which financial transactions are recorded, reported and analysed in business. Home

No Picture
Financial Terms

Budget

An estimate of income and expenses over a defined period; month, quarter, year or three year. Budgets are an essential part of any planning and operating of a business. Failing to budget very rarely ends […]

No Picture
Financial Terms

Cash Flow

The total amount of money being transferred into and out of a business, especially as affecting liquidity. Home

No Picture
Financial Terms

Fiduciary duty

A fiduciary duty simply means that a director of a company must exercise the powers and perform the functions of a director in good faith in the best interest of the company. The director owes […]

No Picture
Financial Terms

Income Statement

An income statement or profit and loss account  (also referred to as a profit and loss statement (P&L), statement of profit or loss, revenue statement, statement of financial performance, earnings statement, operating statement, or statement of operations) is one of the financial statements of a company and shows the company’s revenues and expenses during […]

No Picture
Business

Executive Summary

An executive summary, or management summary, is a short document or section of a document, produced for business purposes, that summarizes a longer report or proposal or a group of related reports in such a way that readers can […]

No Picture
Financial Terms

General Ledger

A general ledger contains all the accounts for recording transactions relating to a company’s assets, liabilities, owners’ equity, revenue, and expenses. In modern accounting software or ERP, the general ledger works as a central repository for accounting data transferred from […]

No Picture
Financial Terms

Journal

A journal is a book or computer file in which all financial transactions are entered the first time they are processed. This journal lists transactions in chronological sequence by date, prior to a transfer of the same […]

No Picture
Financial Terms

Operating Costs

[two_third padding=”0 10px 0 0″] For a commercial enterprise, operating costs fall into three broad categories: Fixed costs, which are the same whether the operation is closed or running at 100% capacity. Fixed Costs include […]