FINM 05-18 - Midterm

1. Financial accounting - is the field of accounting concerned with the summary, analysis
and reporting of financial transactions related to a business. This involves the
preparation of financial statements available for public use.

2. Intermediate Accounting - is a course of study in financial accounting.

3. Revenue - is the money generated from normal business operations, calculated as the
average sales price times the number of units sold.

4. Accounting - is a term that describes the process of consolidating financial information

to make it clear and understandable for all stakeholders and shareholders. The main
goal of accounting is to record and report a company's financial transactions, financial
performance, and cash flows

5. Income Statement - is one of the financial statements of a company and shows the
company's revenues and expenses during a particular period. It indicates how the
revenues are transformed into the net income or net profit.

6. Balance Sheet - is a financial statement that communicates the so-called “book value” of
an organization, as calculated by subtracting all of the company's liabilities and
shareholder equity from its total assets.

7. Capital stock - is the amount of common and preferred shares that a company is
authorized to issue, according to its corporate charter. Capital stock can only be issued
by the company and is the maximum number of shares that can ever be outstanding.

8. Long term liability - are liabilities that are due beyond a year or the normal operation
period of the company. The normal operation period is the amount of time it takes for a
company to turn inventory into cash. 

9. Current asset - is any asset which can reasonably be expected to be sold, consumed, or
exhausted through the normal operations of a business within the current fiscal year or
operating cycle or financial year.
10.Current liability - are a company's short-term financial obligations that are due within
one year or within a normal operating cycle. Current liabilities are typically settled using
current assets, which are assets that are used up within one year.

11.Banking - is the business of protecting money for others. Banks lend this money,
generating interest that creates profits for the bank and its customers. A bank is a
financial institution licensed to accept deposits and make loans. But they may also
perform other financial services.

12.Equity - refers to the value of a business or piece of property after subtracting the
amount of the mortgage. 

13.Stockholder’s Equity - is the amount that the owners of a company have invested in
their business. This includes the money they've directly invested and the accumulation
of income the company has earned and that has been reinvested since inception.

14.Accounts Receivable - refer to the money a company's customers owe for goods or
services they have received but not yet paid for.

15.Accounts Payable - is money owed by a business to its suppliers shown as a liability on a

company's balance sheet.

16.Business finance is the raising and managing of funds by business organizations.

Planning, analysis, and control operations are responsibilities of the financial manager,
who is usually close to the top of the organizational structure of a firm.

17.Wealth – is an abundance of valuable possessions or money.

18.Money – is a current medium of exchange in the form of coins and banknotes; coins and
banknotes collectively.

19.Asset - a useful or valuable thing, person, or quality.

20.Sole proprietorship, is also known as a sole trader ship, individual entrepreneurship, or

proprietorship, is a type of enterprise owned and run by one person and in which there
is no legal distinction between the owner and the business entity.
21.A partnership is a form of business where two or more people share ownership, as well
as the responsibility for managing the company and the income or losses the business
generates.

22.Corporation – is a company or group of people authorized to act as a single entity

(legally a person) and recognized as such in law.

23.Financial management is the art and science of managing money to meet predefined
objectives. It is the process of planning, organizing, controlling, and monitoring financial
resources to achieve organizational goals and objectives.

24.Capital – is a wealth in the form of money or other assets owned by a person or

organization or available or contributed for a particular purpose such as starting a
company or investing.

25.Fund – is a sum of money saved or made available for a particular purpose:

26.Mutual Fund - is an investment program funded by shareholders that trades in

diversified holdings and is professionally managed.

27.Portfolio - a collection of financial investments like stocks, bonds, commodities, cash,

and cash equivalents, including closed-end funds and exchange traded funds (ETFs).
People generally believe that stocks, bonds, and cash comprise the core of a portfolio.

28.Loan - a thing that is borrowed, especially a sum of money that is expected to be paid
back with interest:

29.Public Finance - Public Finance is the way of managing the public funds in the economy
of the country which plays the most important role in the development and growth of
the nation both domestically as well as internationally and it also affects every
stakeholder of the country whether that stakeholder is a citizen or not.

30.Personal Finance - is a term that covers managing your money as well as saving and
investing. It encompasses budgeting, banking, insurance, mortgages, investments,
retirement planning, and tax and estate planning.
31.Corporate Finance - Corporate finance refers to planning, developing, and controlling
the capital structure of a business. It aims to increase organizational value and profit
through optimal decisions on investments, finances as well as dividends.

32.17. Private Finance - is money management by an individual or a private entity. It is,

indeed, fund optimization over revenue generation and expenditure.

33.Income - is a money received, especially on a regular basis, for work or through

investments.

34.Corporative - relating to or denoting a state, typically a fascist one, organized into

corporations representing employers and employees in various trades or professions.

35.Liability - is a legal debt or obligation that an entity must pay back. An entity could be,
for example, a person or a company.