CASH FLOW - The net amount of money moving into and out of a business or individual account during a specific period. It is calculated by subtracting total cash outflows (expenses) from total cash inflows (income)., RETURN ON INVESTMENT (ROI) - A performance metric used to evaluate the profitability of an investment by comparing the gain or loss generated to the cost of the investment., BUDGETING - The process of creating a plan to spend an organization's resources, including money, time, and personnel., PROFIT MARGIN - The percentage of revenue that remains as profit after all expenses are deducted., FINANCIAL FORECASTING - The process of estimating a business's future financial performance, such as revenue, expenses, and cash flow, using historical data, current market trends, and strategic assumptions., COST REDUCTION - The strategic process of identifying and lowering a company's expenses to increase profitability, often achieved by improving efficiency, streamlining processes, and eliminating waste., ASSETS AND LIABILITIES - Assets are what a company owns and are expected to provide a future economic benefit, while liabilities are what a company owes to others, such as loans or unpaid bills. Both are fundamental components of a company's balance sheet, which is a financial statement that shows the company's financial health., WORKING CAPITAL - The capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities., FINANCIAL STATEMENTS - Formal records of a business's or individual's financial activities and position, summarizing transactions over a specific period., RISK MANAGEMENT - The process of identifying, assessing, and controlling potential threats to an organization's objectives, capital, and earnings.,

FINANCIAL TERMS- BUSINESS

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