Discover key financial terms explained simply to help you make smarter money decisions.
Summary of transactions in a financial account
Amount owed to suppliers
Financing secured by accounts receivable
Ratio measuring how effectively credit sales are collected
Pension benefit earned to date
Dividend earned but not yet received
Expense recognized before it’s paid
Income earned but not yet received
Interest earned but not yet paid
Expense recognized but not yet paid
Gain on a bond bought below par value
Revenue earned but not yet received
Estimated pension liability based on current salary
Negative retained earnings balance
Total depreciation taken on an asset over time
Profits retained for reinvestment rather than paid out as dividends
Shortfall in required pension plan funding
Interest that has accumulated but not yet paid
Gains and losses excluded from net income
Account used for reinvesting investment earnings
