Contact our Self-Directed Experts. Accounts Payable. This article is an attempt to create a glossary of financial terms, which is both compact as well as comprehensive. It is something you own that can reasonably be expected to produce something for you.Assets include stocks, bonds, commodities, real estate, and other investments. Stockholders’ equity: The claim that shareholders of the corporation have to the company’s net assets. Balance sheet (BS) definition: A financial report that summarizes a company's assets (what it owns), liabilities (what it owes) and owner or shareholder equity, at a given time. Critics will say it is a deliberate ploy by advisers to part you with your money by selling complex financial investments that … As with technology, the finance world is filled with acronyms and terms that might sound alien to many people. 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The Basics of Financial Markets; Account See Current accounts and Savings accounts. Financial Accounting For Dummies provides students who are studying finance, accounting and business with the basic concepts, terminology, and methods to interpret, analyse, prepare and evaluate financial statements. Even those people rely on mainstream society to purchase property, food, and services at a bare minimum. The accounts are numbered in order, usually starting with 1000 (assets) and continuing through to 9000 (miscellaneous gains and losses). People need to understand their rights and boundaries before they jump into financial endeavors. Part of Financial Accounting For Dummies Cheat Sheet . People must understand the aspects of securing their finances before they can start the process, including learning about the various financial options available to them. Chart of accounts: A list of all accounts set up to handle a company’s accounting transactions. Amortization. Business combination: The process of combining two or more businesses — also known as mergers and acquisitions (M&A). While lecturing on certain topics, I would occasionally observe puzzled faces upon mentioning some basic financial terms. Certified Public Accountant (CPA): The professional license for accountants. Financial statements are written records that convey the business activities and the financial performance of a company. This represents your small business’s obligations to pay debts owed to lenders, suppliers, and creditors. Please read our Disclosure and Disclaimer. FINANCIAL STATEMENT comprising the accounts of two or more entities. Key Financial Accounting Terms and Definitions, Financial Accounting For Dummies Cheat Sheet, Accounting Details in Different Kinds of Financial Statements, Working toward a Financial Accounting Career, Cost Accounting: Allocation Decisions about Scrap, Part of Financial Accounting For Dummies Cheat Sheet. 7. 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