What's what in finance

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capital spending

A type of investment made by a company when buying equipment

interest

How you are charged for borrowing money

mortgage

How you can pay to buy a house, unless you can pay for it in a single payment

dividends

Individuals who invest their money in a company hope to receive these regularly

inflation

Rising prices, rising costs and rising wages in an economy

tax

Something that the government collects and no one likes to pay

assets

The name for all the property, equipment, investments and money owned by a company (or individual)

liabilities

The name for everything that a company owes

bankruptcy

The situation where a company does not have enough money or property to pay its debts, and so the company closes

turnover

The total amount of sales in a year

accounts

What a company has to prepare every year for presentation to its owners and to the relevant authorities

shares

What you buy if you invest money in a company

profit

What, in financial terms, a business hopes to make

pension

When you are old, you hope to have one of these

bank

Where you go to borrow money or get cash


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