Financial Terms Archive | Page 4 of 28

Mar 27

Liability

By Josh Wells

In finance, liability refers to the financial obligations or debts that an individual, company, or organization owes to others. Understanding financial liabilities is crucial for managing finances, assessing financial health,…

Mar 27

Equity

By Josh Wells

Equity is a fundamental concept in finance and business, representing ownership interest in a company. For a UK audience, understanding equity is crucial for both investors and business owners, as…

Mar 27

Working Capital

By Josh Wells

Working Capital is a financial metric that represents the difference between a company’s current assets and current liabilities. It is a crucial indicator of a business's short-term financial health and…

Mar 27

Accrual Accounting

By Josh Wells

Accrual accounting is a fundamental accounting method used by businesses to recognize revenues and expenses when they are incurred, regardless of when cash transactions occur. For a UK audience, understanding…

Mar 27

Cash Flow

By Josh Wells

Cash flow is a critical concept in business finance, representing the movement of money in and out of a business over a specific period. For a UK audience, understanding cash…

Mar 27

Operating Asset

By Josh Wells

An operating asset, in the context of business and finance in the UK, refers to assets that are essential for a company's day-to-day operations and generating revenue. Here's a description…

Mar 27

Liquid Asset

By Josh Wells

A liquid asset in the UK refers to an asset that can be quickly converted into cash without significantly affecting its market price. Here's an explanation tailored for a UK…

Mar 27

Secured Asset

By Josh Wells

A secured asset is a valuable item that a borrower pledges as collateral to a lender in exchange for a loan. This arrangement provides the lender with a security interest…