Business Finance Glossary

This glossary of terms may help in understand any business loan contract you may be considering.

Assets

Anything that your company owns that has value from cash, investments, property, equipment or debtor.

Balance Sheet

A snapshot of a company's financial situation covering assets and liabilities at a given moment in time, usually year end.

Cash Flow

A measure of cash being generated by a business after taking into account all income and expenditure.

CCJ

County Court Judgement.

CVA

Company Voluntary Arrangement.

Fixed Costs

All expenses that are incurred independent of the level of output.

Gross Profits

Sales Revenues less the costs of goods or services sold.

IVA

Individual Voluntary Arrangement.

Liabilities

Any item that is potentially owed to some else.

Liquid Assets

Any asset that can be turned into cash quickly.

Net Profits

Total Revenue less Total Expenses.

ROI

Return on Investment.

ROE

Return on Equity.

ROCE

Return on Capital Employed.

RONA

Return on Net Assets.

ROTA

Return on Total Assets.

Variable Costs

Expenses that move up and down with output.