financial concepts
what is income
It is when prices rise and the value of money falls
What is the objective of a balance sheet?
show assets, liabilities and equity at a specific time
what is inflation
widespread and sustained increase in prices
what is investment
It is the money that a person regularly earns for his or her work
what is inflation
It is what you pay the bank to lend money
showing the income statement
income and expenses during a period
which measures GDP
the total value of goods and services produced in a country
what is income
document that helps plan expenses and income in an orderly manner
what is interest
It is the difference between what you earn and what you spend
what is cash flow
the money that enters and leaves a company
what is an economic recession
GDP decline for at least two consecutive quarters
what is a budget
money that a person saves for the future
what is savings
document that organizes how much you earn and spend
What does ROE (return on equity) mean?
return on shareholders' capital
difference between primary and secondary market
Primary = initial issue of securities; secondary = purchase and sale between investors
what is savings
expense that is repeated month to month such as rent or utilities
what is a budget
It is the money you regularly receive for your work
what is EBITDA
Earnings before interest, taxes, depreciation, and amortization
what is a stock market index
indicator that measures the performance of a set of actions
which is a fixed expense
concept that means spending less today to have more in the future