AMORTIZATION

This is the reduction of principal or debt by regular payments. Amortization can also be achieved via a purchase or sinking fund.

BALANCE SHEET

A financial statement of a company’s assets and liabilities. It gives a snapshot at a specific point in time of the assets the company holds and how they have been financed.
CASH FLOW

It is a revenue stream calculated by subtracting cash receipts from cash payments for a given period.
DEPRECIATION

Depreciation is the loss in value of an asset as a result of usage, the passage of time, or obsolescence. Depreciation is applied only to tangible assets, such as property and machinery.
EQUITY

Equity is the stake that shareholders have in a company. This shareholders equity is calculated by subtracting total liabilities from total assets.
INFLATION

Inflation is a persistent rise in the prices of goods and services. It is greatly affected by the rule of supply and demand.
INTEREST

Interest is the percentage of the sum of borrowed money, charged to the borrower for its use. Payment of this sum are scheduled over a period of time.
LIABILITY

All financial claims, debts or potential losses against or incurred by an individual or an organisation.
PRINCIPAL

The total amount borrowed or invested.
PROFIT MARGIN

Profit as a percentage of sales or capital. Profit margins can be gross i.e. before tax or other charges, or net i.e. after tax or other charges.
REVENUE

The income earned from the sale of goods or services by a company in a given period.
SHAREHOLDER

An individual or financial institution that holds shares or stock in an organization or company.
WORKING CAPITAL

The resource that a company uses to finance day-to-day operations