Financial Terms Dictionary

This financial dictionary of over 200 financial terms will teach you many important financial concepts. This is important to increase your financial literacy.

Do you know the difference between a balance sheet and an income statement? Or equity and revenues? Many people are confused about financial terms.

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10-K

10-Q

12b-1 fee

1040 Form

1099 Form

3 fund portfolio

401(k) plan

403(b) plan

501(c)(3) organization

A

Accounting

Accounting equation

Accrual basis accounting

Amortization

Amortize

Annual percentage rate

Annuity

Appreciation

APR

Asset

Asset allocation

Asset class

B

Backslash

Bad debt

Balance sheet

Bear

Bitcoin

Blockchain

Board of directors

Board of trustees

Breakeven analysis

Breakeven point

Bull

C

CAGR

Cash flow statement

Cash basis accounting

Cash ratio

Caveat emptor

Command key

Compound annual growth rate (CAGR)

Compound interest

Cryptocurrency

Current ratio

Custodial account

D

DBA

Debits and credits

Defined benefit plan

Defined contribution plan

Depreciation

Discount rate

Dividends

DJIA

Double entry accounting

Doubtful account

Dow

Dow Jones Industrial Average

E

Earnings

Earnings before interest and taxes (EBIT)

Earnings before interest, taxes, depreciation, and amortization (EBITDA)

Earnings before taxes (EBT)

Earnings per share (EPS)

EBIT

EBITDA

EBT

Equity

EPS

Excel

Expense

F

FASB

FDIC

Federal Deposit Insurance Corporation

FIFO

Finance

Financial accounting

Financial Accounting Standards Board

Financial Independence, Retire Early

Financial Industry Regulatory Authority

Financial literacy

Financial ratios

Financial statement

Financial statement analysis

FINRA

FIRE

First in, first out

Fraud

Fraud triangle

Future value

G

GAAP

Gain

Generally accepted accounting principles

Gross profit

Gross profit margin

H

HLOOKUP

Horizontal analysis

Hurdle rate

I

IASB

IFRS

Income statement

Index fund

Interest rate

International Accounting Standards Board

International Financial Reporting Standards

Inventory turnover

J

Journal

Journal entry

Junk bond

K

Kaizen

Key performance indicators

Kiting

KPI

L

Last in, first out

Liability

LIFO

Liquidity

Liquidity ratios

Loss

M

Managerial accounting

Marketable security

Market cap

Master of Business Administration

MBA

Microsoft Excel

N

Nasdaq

Nasdaq composite

New York Stock Exchange

Net income

Net loss

Net working capital

Net worth

NYSE

O

Operating expense

Operating income

Operating loss

Operating profit

P

Plant assets

Present value

Price-earnings ratio

Profit and loss statement

Profit margin

Q

Quarterly report

Quick ratio

R

R2

Ratio analysis

Return on assets (ROA)

Return on equity (ROE)

Return on investment (ROI)

Return on sales (ROS)

Revenue

ROA

ROE

ROI

ROS

R-squared

Rule of 72

S

S&P 500

S&P 500 index fund

SEC

Securities and Exchange Commission (SEC)

Shrinkage

Simple interest

Sole proprietor

Sole proprietorship

Standard & Poor’s

Statement of cash flows

SWOT analysis

T

T-account

Temporary account

Time value of money

Trial balance

U

Uncollectible account

Unearned revenue

Useful life

V

Vanguard

Vanguard 500 Index Fund

vertical analysis

VFIAX

VLOOKUP

W

W-2 form

windows key

working capital

X Y Z

XLOOKUP

yield

yield to maturity

zero-coupon bond

zero-sum game

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