Financial Terms Glossary

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

This glossary of over 100 financial terms will teach you all the important financial concepts and definitions.


Financial Terms Glossary


Financial Terms “1 2 3”

10-K

10-Q

12b-1 fee

1040 Form

1099 Form

3 fund portfolio

401(k) plan

403(b) plan

501(c)(3) organization

Back


Financial Terms “A”

Accounting

Accounting equation

Accrual basis accounting

Annuity

Appreciation

Asset

Back


Financial Terms “B”

Bad debt

Balance sheet

Bear

Bitcoin

Blockchain

Breakeven analysis

Breakeven point

Bull

Back


Financial Terms “C”

CAGR

Cash flow statement

Cash basis accounting

Cash ratio

Command key

Compound annual growth rate (CAGR)

Compound interest

Cryptocurrency

Current ratio

Custodial account

Back


Financial Terms “D”

Debits and credits

Depreciation

Discount rate

Dividends

DJIA

Double entry accounting

Doubtful account

Dow

Dow Jones Industrial Average

Back


Financial Terms “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

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Financial Terms “F”

FASB

FDIC

Federal Deposit Insurance Corporation (FDIC)

FIFO

Finance

Financial accounting

Financial Accounting Standards Board (FASB)

Financial Independence, Retire Early (FIRE)

Financial Industry Regulatory Authority (FINRA)

Financial literacy

Financial ratios

Financial statement

Financial statement analysis

FINRA

FIRE

First in, first out

Fraud

Fraud triangle

Future value

Back


Financial Terms “G”

GAAP

Generally accepted accounting principles

Gross profit

Gross profit margin

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Financial Terms “H”

HLOOKUP

Horizontal analysis

Hurdle rate

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Financial Terms “I”

IASB

IFRS

Income statement

Index fund

Interest rate

International Accounting Standards Board

International Financial Reporting Standards

Inventory turnover

Back


Financial Terms “J”

Journal

Journal entry

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Financial Terms “K”

Kaizen

Key performance indicators

Kiting

KPI

Back


Financial Terms “L”

Last in, first out

Liability

LIFO

Liquidity

Liquidity ratios

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Financial Terms “M”

Managerial accounting

Marketable security

Market cap

Master of Business Administration

MBA

Microsoft Excel

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Financial Terms “N”

Net income

Net loss

Net working capital

Net worth

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Financial Terms “O”

Operating expense

Operating income

Operating loss

Operating profit

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Financial Terms “P”

Plant assets

Present value

Price-earnings ratio

Profit and loss statement

Profit margin

Back


Financial Terms “Q”

Quarterly report

Quick ratio

Back


Financial Terms “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

Back


Financial Terms “S”

S&P 500

SEC

Securities and Exchange Commission (SEC)

Simple interest

Statement of cash flows

SWOT analysis

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Financial Terms “T”

T-account

Temporary account

Time value of money

Trial balance

Back


Financial Terms “U”

Uncollectible account

Unearned revenue

Useful life


Financial Terms “V”

Vertical analysis

VLOOKUP


Financial Terms “W”

W-2 form

Windows key

Working capital

Back


Financial Terms “X Y Z”

XLOOKUP

Yield

Yield to maturity

Zero-coupon bond

Zero-sum game

Back


Jeff Mankin

Jeff Mankin teaches financial literacy. His website is FinallyLearn.com.

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