Finances Glossary

Decode the buzzwords of the finances space
THE LANGUAGE OF FINANCES
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Startup Glossary  | Finanshels

Glossary

A comprehensive guide to understanding and communicating key startup concepts. Your Go-To Resource for Startup Terminology: A Glossary of Key Metrics, Definitions, and Formulas

Gross profit margin

Gross profit margin is a measure of a company's profitability that indicates how much of its total revenue is left after accounting for the cost of producing and selling its products or services.

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IFRS

It is a set of accounting standards developed by the International Accounting Standards Board (IASB) that provide a framework for the preparation of financial statements.

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Indirect costs

Indirect costs, also known as overhead costs or overhead expenses, are expenses that are not directly related to the production of a good or service.

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Intangible assets

Intangible assets are non-physical assets that have a value to a company but cannot be touched or seen.

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Invoice

An invoice is a document that a seller sends to a buyer to request payment for goods or services that have been provided.

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Journal entry

A journal entry is a record of a financial transaction in a company's accounting records.

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Key Performance Indicator (KPI)

A key performance indicator (KPI) is a measurable value that is used to assess the performance of an organization, team, or individual against a set of targets or objectives.

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Last Twelve Months (LTM)

Last Twelve Months (LTM) is a term used to refer to the most recent twelve months for which financial data is available.

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Ledger

A ledger is a book or database that is used to record financial transactions.

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Liabilities

Liabilities are obligations that a company owes to others.

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Limited Liability Company (LLC)

A limited liability company (LLC) is a type of business entity that provides its owners with limited liability protection.

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Liquidity

Liquidity refers to a company's ability to meet its short-term obligations.

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