Tracking Financial Performance Standards of ... - Sa-Dhan

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Tracking Financial Performance Standards of Microfinance InstitutionsInsolventIntangible AssetInterestInterim Financial StatementsInterim FinancingInterim StatementInternal AuditInternal ControlInternal TransactionsWhen an entity's Liabilities exceed its Assets.Asset having no physical existence such as trademarks and patents. A longlivedasset that is useful in the operations of an enterprise, is not held for sale,and is without physical qualities. Long-term assets used in a business that lackphysical substance. Examples include patents, copyrights, trademarks, andfranchises. Anything nonphysical, such as goodwill, trademarks, and patents,that have value for a company. Listed in the assets category (sometimes as"Investments and sundry assets") on the statement of financial position. Wouldpositive peer pressure in micro-finance be such an intangible assetPayment for the use or forbearance of money. The charge for credit; calculatedas (principal) X (rate) X (time)Financial Statements that report the operations of an entity for less than oneyearShort-term loan to provide temporary financing until more permanentfinancing is availableA financial statement issued for a period covering less than a fiscalyearStatements that are prepared during the fiscal year for periods of less than12 months--such as monthly, quarterly, and semiannuallyAudit performed within an entity by its staff rather than an independentcertified public accountant.Process designed to provide reasonable assurance regarding achievement ofvarious management objectives such as the reliability of financial reports. Theprocedures used within a company to protect its assets.Transactions, such as adjustments, that occur within a company and do notaffect parties outside the companyInvestment Expenditure used to purchase goods or services that could produce a returnto the investor. A company's equity ownership in unconsolidated subsidiariesand affiliates. Listed in the category of assets (for example, "Investments andsundry assets") on the statement of financial position.InvoiceJournalJournalizingLeaseLeaseholdTermDefinitionA business document that contains the names and addresses of the buyer andthe seller, the date and terms of the sale, a description of the goods, the priceof the goods, and the mode of transportation used to ship the goods. Theseller calls the invoice a sales invoice; the buyer calls it a purchase invoice. Thebill provided by the seller (referred to as a sales invoice) to a purchaser (referredto as a purchase invoice) for items purchased.Any book containing original entries of daily financial transactions. A formin which transactions are recorded in chronological order (by order of date).The process of recording transactions in a journal.Conveyance of land, buildings, equipment or other assets from one person(Lessor) to another (Lessee) for a specific period of time for monetary or otherconsideration, usually in the form of rent. A contractual agreement conveyingthe right to use an asset for a stated period of time.Property interest a lessee owns in the leased property.128
Glossary of Financial TermsTermLedgerLegal CapitalLesseeLessorLetter of CreditLeverageLiabilitiesLiabilities, Total LiabilitiesLimited LiabilityLine of CreditLiquid AssetLiquid Assets - CashLiquidationLiquidityLoan AgreementLong-Term DebtDefinitionAny book of accounts containing the summaries of debit and credit entries.Acollective grouping of accounts. The group of accounts used by an enterprise.The amount of earnings that a corporation must retain before a dividend canbe paid to stockholders; usually equals the par value of the stock outstanding.Person or entity that has the right to use property under the terms of a lease.Owner of property, the temporary use of which is transferred to another (Lessee)under the terms of a lease.Conditional bank commitment issued on behalf of a customer to pay a thirdparty in accordance with certain terms and conditions. The two primary typesare commercial letters of credit and standby letters of credit.Using long-term debt to secure funds for an organization. In the socialinvestment world, often refers to financial participation by other private, publicor individual sources The use of borrowed funds to earn a greater return thanthe cost of the borrowed funds.The tendency of the rate earned on stockholders'equity to vary from the rate earned on total asserts because the amount earnedon assets acquired through the use of funds provided by creditors varies fromthe interest paid to these creditors. A company's use of debt, instead of itsequity, to support its assets and grow.Debts owed by the business.A company's debts to a lender, a supplier of goodsand services, a tax authority, a landlord, and others. Listed as a category on thestatement of financial position. Debts or obligations owed by one entity(debtor) to another entity (creditor) payable in money, goods, or services. Adebt of a business enterprise.Total value of financial claims on a firm's assets. Equals total assets minus networth.Limitation of shareholders' losses to the amount invested means thatstockholders of a corporation are not personally liable for the debts of thecompanyAgreement by a bank that a company may borrow at any time up to anestablished limit.An asset that can be quickly converted into cash. Examples include cash andmarketable securities.cash equivalents, and marketable securities.Winding up an activity by distributing its assets to the appropriate partiesand settling its debts. The process of winding up a business.Refers to how quickly an asset can be turned into cash, used up, or expire;used in reference to assets, which are listed on the balance sheet in the order oftheir liquidity.A written contract between a lender and a borrower that sets out the rightsand obligations of each party regarding a specified loan.Debt with a maturity of more than one year from the current date. Debt acompany will repay after one year. Listed in the liabilities category on thestatement of financial position.129
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TECHNICAL TOOL SERIES 1TRACKING FIN
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INTRODUCTION TOMICROFINANCE STANDAR
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5. PERFORMANCE STANDARDS - CONCEPT,
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ACKNOWLEDGMENTSThe need of the oper
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Tracking Financial Performance Stan
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