GLOSSARY

Finance for Non-Financial Managers

With Jim Stice

Use these terms and definitions below to understand concepts taught in the course.

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Term Definition

accounting equation Assets will always equal liabilities and equity

assets Resources that will provide a benefit in the future

contribution margin The difference between selling price and variable costs

finance Identifying a business organization’s needs, how to obtain the money to

buy the items the organization needs, and how to manage those items
efficiently

financial statements The method in which the effects of transactions are summarized and
reported in a manner that is beneficial for external users of the financial
information

liabilities Obligations to repay money or provide a service in the future

return on equity The measure of profit earned per dollar of investment

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