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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 […]

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Financial Terms

Cash Flow

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

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]