Finance Glossary

Liquidated: To sell all of a company's assets, pay outstanding debts, and distribute the remainder to shareholders, and then go out of business.

Example: The company does not overcome the debts for which it proceeds to liquidate it to replace them

Financial outlay: Payments on obligations in the form of cash, checks, the issuance of bonds or notes, or the maturing of interest coupons.

Example:  I catch up with the financial costs that have made ​​this month.

Payroll: the total of these amounts or the actual money equivalent

Example:  the cost of  payroll increases this month

Debtor: An amount owed to a person or organization for funds borrowed.

Example: I’m one of the debtors in the bank

Capital: Cash or goods used to generate income either by investing in a business or a different income property.

Example: my family have capital for investment

Creditor: A person or organization which extends credit to others.

example: the creditor hasn’t been approved in the bank

inflation: The overall general upward price movement of goods and services in an economy

example: the inflation increase 1 percent in this year.

Fixed assets: Land, buildings, equipment, machinery, vehicles, leasehold improvements, and other such items.

Example: Fixed assets are not consumed or sold during the normal course of a business but their owner uses them to carry on its operations

Balance sheet: Condensed statement that shows the financial position of an entity on a specified date (usually the last day of an accounting period)

Example: the balance sheet haven’t been registered the last year

Current assets: Accounts receivables, inventory, work in process, cash, etc.,

Example: in this moment the company only has current assets

Current Liabilities: Obligations such as deferred dividend, trade credit, and unpaid taxes, arising in the normal course of a business and due for payment within a year. Also called current debt.

Example: the company has current liabilities in the bank international