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Finance Terminology

Finance Terminology

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Published by Santosh....
Its a collection of some terms used in Finance Sector
Its a collection of some terms used in Finance Sector

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Published by: Santosh.... on Nov 06, 2009
Copyright:Attribution Non-commercial

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12/24/2012

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CRFE
AN ASSIGNMENT ON FINANCIAL TERMINOLOGY 
AN ASSIGNMENT ON“FINANCIAL TERMINOLOGY”
Submitted to:
MISS SONALI PATTNAIK Faculty, Department of Finance,VISWASS
Submitted by:
MR. SANTOSH KUMAR SAHOOMFC IInd YearRoll No. 19
VIVEKANANDA INSTITUTE OF SOCIAL WORK AND SOCIAL SCIENCES
237, Bapuji Nagar,Bhubaneswar-751009
Account:
A record in the general ledger that is used to collect and store similainformation. For example, a company will have a Cash account in which every transaction
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CRFE
AN ASSIGNMENT ON FINANCIAL TERMINOLOGY 
involving cash is recorded. A company selling merchandise on credit will record these salesin a Sales account and in an Accounts Receivable account.
Debtor:
An individual or organization that owes a debt or has an obligation to another party. A debtor is a person or entity that
owes
money. In other words, the debtor has a debtor legal obligation to pay an amount to another person or entity. For example, if you borrow$10,000 from a bank, you are the debtor and the bank is the creditor.
Creditor:
The person or organization to whom the debtor owes money or has some other form of legal obligation.An individual, business or other organization to whom money or something of value is owed.Someone who has granted credit. If a bank lends a company money, the bank is a creditor. If a supplier sold merchandise to a company on credit, the supplier is a creditor.
Revenue:
Fees earned from providing services and the amounts of merchandise sold.Under the accrual basis of accounting, revenues are recorded at the time of delivering theservice or the merchandise, even if cash is not received at the time of delivery. Often the termincome is used instead of revenues.For acompany, this is the totalamountof earnings by the company for goods soldor servicesprovided during a certain timeperiod. It also includes allnet  sales,exchangeof assets; interestand any other increase inowner's equityand is calculated before anyexpensesare subtracted.
Profit:-
An advantageous gain or return; benefit.
-
The return received on a business undertaking after all operating expenses have been met.
-
The return received on an investment after all charges have been paid. Often used in theplural.
-
The rate of increase in the net worth of a business enterprise in a given accounting period.
-
Income received from investments or property.
-
The amount received for a commodity or service in excess of the original cost.
-
Best knownmeasureof thesuccessof anenterprise, it is thesurplusremaining after total costsare deducted fromtotal revenue, and the basis on whichtaxis computed anddividendispaid. Profit is reflected inreductioninliabilities, increase inassets, and/or increase inowners' equity. It furnishesresourcesfor investingin futureoperations, and its absence mayresultin the extinction of thefirm. As an indicator of comparativeperformance, however, it is less valuable thanreturn on  investment (ROI). Ineconomics, totalcostsmust include acosttocover thenormal  profitfor the firm. Also calledearnings,gain, or income.
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CRFE
AN ASSIGNMENT ON FINANCIAL TERMINOLOGY 
Expense
expended or 
 cost  
incurred in a firm's efforts to generate
,representing cost of doing
. Expenses may be in the
 form 
of actual
(such as
 wages 
and
), a computed 'expired' portion(
) of an asset, or an
taken out of the firm's
(such as
). Expenses are summarized and charged in the firm's
as
from the
 income 
before assessing
. Whereas all expensesare
, not all costs (such as those incurred in
of incomegenerating
) are expenses.
Expenditure
:
Actual
of 
 cash 
or 
for 
 goods 
or 
, or a
against
in
of an
as evidenced byan
,
,
, or other such
.A
is cashused in payment for goods and services consumed in a short
. A
is cash used in
of 
that last one year or more.
Narration:
Narration is a short description about the transaction written under the journalentry for easy reference.
Debit:
In
,
its anentry  
on the left-hand side oan
. It has the effect of decreasing a capital, liability, or 
, or of increasing an 
or 
.Simply, debit refers to the receiving aspect of a transaction.
Credit:
Indouble entry bookkeeping, it refers to theentryon the left-hand side of  anaccount record. It has the effect of decreasing anassetor expense account, or of  increasing a capital, liability, or revenue account.Simply, credit refers to the giving aspect of a transaction.
Bookkeeping
:
Bookkeeping refers to the
recording of 
aspectsof 
in appropriate
.
Cash
:
Cash refers to ready
.For accountingpurposes, cash includes money in the cash pan,petty cash,cash inthe locker,bank account balance,customer  checks, andmarketable securities. It may also include the un-utilized portion of anoverdraft facilityor line of credit.
Funds
:
All the
of a firm, such as
,
,
. Any
 change 
in these resources is reflected inthe
.
Liquidity:
-
General:Measureof the extent to which apersonor firmhas (or has theabilityto quickly puthands on)cashto meet immediate andshort-term obligations.
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