Business finance is the funding a business needs for commercial purposes. It is the money business owners require to start, run, or expand a business. Finance is the foundation of any business..
Finance terms to know
Net income Arguably the most important financial words for any business owner – net income..
Finance terms to know
These four types of financial transactions are sales, purchases, receipts, and payments..
Financial jargon examples
Business finance is the act of securing economic support to supply funds for your business expenses. Anyone who knows anything about business will tell you that to make money you have to spend money, and businesses often require assistance to secure funding for growth and development..
Financial terminologies and application
These four types of financial transactions are sales, purchases, receipts, and payments..
What is the jargon for the financial market?
The most common stock market slang words include "bear market" (a market in which prices are falling), "bull market" (a market in which prices are rising), and "blue chip" (established, safe, and highly-valued companies)..
Mar 18, 2020Business and Finance Terms to Know1. Accounts Payable2. Accounts Receivable3. Accrual Basis4. Accruals5. Asset6. Balance Sheet.
Use our handy guide to business finance jargon, full of easy to understand definitions, to understand the financial options for your company.
Accrual Basis
The accrual basis of accountingis an accounting method of recording income when it’s actually earned and expenses when they actually occur. Accrual basis accounting is the most common approach used by larger businesses to record and maintain financial transactions.
Accruals
A business finance term and definition referring to expenses that have been incurred but haven’t yet been recorded in the business books. Wages and payroll taxes are common examples.
Asset
This business finance key term is anything that has value—whether tangible or intangible—and is owned by the business is considered an asset. Typical items listed as business assets are cash on hand, accounts receivable, buildings, equipment, inventory, and anything else that can be turned into cash.
Balance Sheet
Along with three other reports relating to the financial health of your small business, the balance sheetis essential information that gives a “snapshot” of the company’s net worth at any given time. The report is a summary of the business assets and liabilities.
Bookkeeping
A method of accounting that involves the timely recording of all financial transactions for the business.
Capital
Refers to the overall wealth of a business as demonstrated by its cash accounts, assets, and investments. Often called “fixed capital,” it refers to the long-term worth of the business. Capital can be tangible, like durable goods, buildings, and equipment, or intangible such as intellectual property.
Working Capital
Not to be confused with fixed capital, working capitalis another business finance 101 term. It consists of the financial resources necessary for maintaining the day-to-day operation of the business. Working capital, by definition, is the business’s cash on hand or instruments that you can convert to cash quickly.
Business finance jargon
Position in a financial instrument in which the holder owns a positive amount
In finance, a long position in a financial instrument means the holder of the position owns a positive amount of the instrument. The holder of the position has the expectation that the financial instrument will increase in value. This is known as a bullish position.
