Financial

concepts
Sofía
Cardona
Marulanda
A Amortization
the process of reducing a cost or
Accounting total in regular small amounts

the skill or activity of keeping

records of the money a person or
organization earns and spends Applications
movements that decrease working

Acid test capital.

The acid test is one of the financial

indicators used to measure the liquidity
of a company, to measure its payment
capacity, and to make the respective Assets
financial analysis.
the total property, money etc of a
person, company etc
 B
Balance sheet
The balance sheet of a company is a
financial accounting document that
reflects the economic and financial
situation of the company at a given
date.

Budget
a plan to show how much money a person or
organization will earn and how much they
will need or be able to spend
 C Cost of sales
Cash is the value that it costs a
company to produce or acquire the
goods or services it sells.
Money in the form of notes and coins,
rather than checks or credit cards.
Includes both cash on hand and demand
deposits.
Customers
a person who buys goods or a
CIF service

are those derived from resources

consumed in the manufacture or production
or construction of a product, which
affect a set of activities or processes,
so that a direct measurement of the
amount consumed per unit of product is
not feasible.
 D Devaluation
Debts is the disappearance of the nominal
value of a current currency against
other currencies.
Debt is an obligatory payment commitment
between two entities. If the word debt
is essentially used for repaying money,
economic debt

Depreciation
Refers to a periodic decrease in the
value of a tangible or intangible asset.
This depreciation can result from three
main reasons: wear and tear due to use,
the passage of time and old age.
 E Expenses
Economic assets all those incurred by a company as
a result of the use of capital made
available to it by third parties.
tangible and intangible assets that have
economic value and, therefore, can be
evaluated in monetary terms.

Equity
The set of assets, rights and obligations
held by a person or company.
F Financial surplus
in a general way alluding to the
Financial analysis abundance or excess of something
that is considered useful or
is a technique that studies the necessary.
accounting information of an
organization, usually based on its
financial statements and over a given
period of time. Finished product
goods manufactured by the company
Financial deficit and intended for final consumption
or use by other companies.
When public administrations show higher
expenditures than revenues over a given
period of time
G
GIF
These are the funds that can be
obtained from the utility.

Gross margin
Represents the percentage of total sales
revenue your company retains after
incurring the direct costs associated
with producing the goods and services
sold.
H
Horizontal analysis
It is a procedure that consists of
comparing homogeneous financial
statements in two or more consecutive
periods to determine increases and
decreases or variations in accounts
from one period to another.
I Interest
Income Statement
is a document that records revenues,
expenditures and investments.
Indebtedness
is the ratio of the company's external
financing to its total liabilities
(equity).
Inflation
generalized and sustained increase
in the prices of the goods and
services most representative of
household consumption in a country
is the amount we pay to use a given
amount of money in a given time.
Inventories
raw materials, work-in-process and
finished goods or goods for sale,
materials, spare parts and
accessories to be consumed in the
production of goods manufactured
for sale or in the rendering of
services
Investments
is the act of allocating resources
for the purchase or creation of
assets or capital, i.e., the act of
not consuming those resources at
the time of the purchase or
creation of assets or capital.
L Loans
Liabilities
represents the debts and obligations
with which a company finances its
activity and serves to pay its assets.
Liquidity
The ability of an individual, a
company or a bank to meet its
financial obligations.
is a financial product that allows
a user to access a fixed amount of
money at the beginning of the
operation, with the condition to
return that amount plus the agreed
interest within a certain period of
time.
Losses
an amount of money lost by a
business or organization.
Leverage
consists of using debt to increase the
amount of money to finance an
operation or an investment.
M
Monetary unit
It is a procedure that consists of
comparing homogeneous financial
statements in two or more consecutive
periods to determine increases and
decreases or variations in accounts
from one period to another.

Monopoly
A market in which a single bidder
determines the price and quantities
offered.
N
Net margin
the percentage of net income generated
from a company's revenue.

Net working capital

is the difference between a company's
current assets
O
Offers
is a conditional proposal made by a
buyer or seller to buy or sell an
asset, which becomes legally binding
if accepted.

Operating margin
The operating margin measures how much
profit a company makes on a dollar of
sales after paying for variable costs
of production
P Product
Periodicity
the quality, state, or fact of being
regularly recurrent or having periods.
Portfolio turnover
is a measure of how quickly securities
in a fund are either bought or sold by
the fund's managers, over a given
period of time.
an article or substance that is
manufactured or refined for sale.
Product in process
A product that is currently under
development, already live in
production, or currently being
sold.
Production
the action of making or manufacturing
from components or raw materials, or
the process of being so manufactured.
P Property, plant and
Profit
a financial gain, especially the
difference between the amount earned
and the amount spent in buying,
operating, or producing something.
Profitability
the degree to which a business or
activity yields profit or financial
gain
equipment
re long-term assets vital to
business operations and the
long-term financial health of a
company.
Purchases
acquire (something) by paying for it;
buy.
Purchasing policy
is a collection of rules that control
the requisition process.
R
Raw Materials
Raw materials are materials extracted
from other materials and used or
transformed to produce other materials
that will later be converted into
consumer goods.

Reserves
A set of things that are reserved for
another time when they are needed or
for a certain appropriate or special
circumstance.
S Shares
Sales
are activities related to the sale or
quantity of goods sold in a given
period of time.
Sales policy
an assortment of products, logistics
configurations, and pricing that
determines the characteristics of a
store.
is a security issued by a
corporation or limited partnership
by shares representing the value of
one of the equal fractions into
which its capital stock is divided.
Sources
referring to all those movements in
the balance sheet that increase
working capital.
Suppliers
is a company or individual that
provides goods or services to other
persons or companies.
T
Taxes
an amount of money that a government
requires people to pay according to
their income, the value of their
property, etc., and that is used to
pay for the things done by the
government.
V
Vertical analysis
is a method of financial statement
analysis in which each line item is
listed as a percentage of a base
figure within the statement.