Key Financial Concepts and Professional Roles
Classified in Economy
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Core Financial Metrics
- Revenue: Money received from customers.
- Gross Profit: Profit after direct costs.
- Net Profit After Tax: Profit after all costs and taxes.
- Retained Profit: Money reinvested in the company.
Operational Costs and Liabilities
- Cost of Goods Sold: Direct costs, e.g., materials and labor.
- Operating Cost: Other costs, e.g., administration, buildings, utilities.
- Tax: Money paid to the government.
- Depreciation: Loss in value of equipment.
- Dividends: Money distributed to shareholders.
- Bid: An offer of money for something at an auction.
- Asset: Anything owned by a person or company that has monetary value.
- Stock: Goods available for sale, distribution, or use.
Debt and Liquidity Terms
- Overdraft: An amount of money by which a bank account is overdrawn.