Accounts receivable
Amounts representing claims against customers recorded in open accounts (current accounts), and usually refers specifically to amounts arising from the sale of goods or trading services
Debt
Debt is a financial obligation that requires one party (an individual or institution) to repay a sum of money to another party at a later time, often including interest. Debt is used as a financing tool to enable companies to expand or individuals to cover their needs, and is subject to contracts that specify repayment […]
Business cycle
The business cycle refers to the phases an economy goes through periodically, including periods of growth, peak, contraction, and recession. Studying this cycle helps in understanding economic changes and making appropriate decisions in the areas of monetary and fiscal policy.
Equity Turnover
A financial ratio used to measure a company’s efficiency in using equity to generate revenue. It is calculated by dividing net sales by average equity over a specific period. This ratio reflects the company’s ability to convert shareholder investments into sales. The higher the ratio, the greater the effectiveness in using owned capital to achieve […]
Merger and Acquisition
Mergers and acquisitions are two financial processes aimed at consolidating two companies into a single entity or one company purchasing another. These processes are used to achieve growth, increase market share, or improve operational efficiency, and are subject to precise legal and financial procedures.
Income
Income is all the money an individual or institution receives as a result of work, investments, or assets. Income forms the basis for assessing living standards and measuring purchasing power, and it is used as a key indicator in financial analysis.
Clearing House
The entity responsible for conducting clearing operations for a large number of parties.
Purchase option
Represents the terms of a finance lease contract, whereby the lessee has the right to purchase the leased equipment at the end of the lease term, either for a specified amount or at fair market value.
Put Option
An option contract that grants the buyer the right to sell an asset.
Unrealized Loss or Gain
The change in the value of an asset still held by its owner, which differs from a realized gain or loss resulting from the sale of an asset. The term typically refers to a decline in an investment portfolio resulting from applying cost or market value, whichever is lower, on an aggregate basis.