Business Finance Terms

Business Finance Terms are those terms that are commonly used in business and financial matters.

Some of the relevant and important terms are as follows:
Assets:
These can be anything that have monetary value and are owned by a company. Fixed assets include buildings, vehicles, and machinery. Trademarks and brand names are also assets.

Liability:
What the business owes are its liabilities. They can be both short-term debts arising out of trading activities and long-term loans taken for financing business activities.

Balance Sheet:
This provides information on the performance of a company, value of assets, debts, gearings, stocks, reserves, shareholders’ funds, cash on hand and other things. In a broad way, the balance sheet provides information on capital flowing in and out of the company.

Budget:
It is the amount of money to be spent in a particular business, usually over a trading year. The budget is essentially the plan that is chalked out for different departments and costs of the business.

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Last Updated on : 1st August 2013

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