Financial Terms Flashcards

Front

A resource owned by a business that is expected to provide future economic benefits.

Back

Asset

Front

A financial obligation or debt that a business owes to another party.

Back

Liability

Front

The total income earned by an individual or business before any deductions.

Back

Gross income

Front

The total income remaining after all expenses, taxes, and costs have been deducted.

Back

Net income

Front

The total sales generated by a business during a specific period.

Back

Turnover

Front

The percentage charged on a loan or paid on an investment.

Back

Interest rate

Front

A sum of money borrowed that is expected to be paid back with interest.

Back

Loan

Front

The financial gain obtained when revenue exceeds expenses.

Back

Profit

Front

An estimate of income and expenditure for a set period.

Back

Budget

Front

A financial statement that summarizes a company's assets, liabilities, and equity at a specific point in time.

Back

Balance Sheet