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

More documents

Recommendations

Info

Tracking Financial Performance Standards of Microfinance InstitutionsTermLong-Term InvestmentLong-Term LiabilitiesLossManagement AccountingMarginMarket RateMarketable SecuritiesMatching PrincipleMatchingMaturity DateMaturity ValueMonetary ItemsNatural Business YearNatural Business YearNegotiableDefinitionAn investment that is not intended to be a ready source of cash in the normaloperations of a business and that is listed in the "investments" section of thebalance sheet. Investments that management intends to hold for more thanone year.Debts that will not come due for payment within one year. Examples arelong-term notes payable and mortgages payable. A liability that is not due fora comparatively long time (usually more than one year).Excess of expenditures over revenue for a period or activity.Reporting designed to assist management in decision-making, planning, andcontrol. Also known as managerial accounting.Excess of selling price over the unit cost.The rate of interest a company must pay to borrow funds currently.Stocks and other negotiable instruments which can be easily bought and soldon either listed exchanges or over-the-counter markets. Financial assets, suchas stocks and bonds, that companies can convert to cash. Listed as assets onthe statement of financial position. An investment in a security that can bereadily sold when cash is needed.A fundamental concept of basic accounting. In any one given accountingperiod, you should try to match the revenue you are reporting with the expensesit took to generate that revenue in the same time period, or over the periods inwhich you will be receiving benefits from that expenditure. A simple exampleis depreciation expense. If you buy a car that will last for many years, youdon't write off the cost of that car all at once. Instead, you take depreciationdeductions over the car's estimated useful life. Thus, you've "matched" theexpense, or cost, of the building with the benefits it produces, over the courseof the years it will be in service. A fundamental rule of basic accounting. Inany one given accounting period, you should try to match the revenue you arereporting with the expenses it took. Requires that revenue earned during anaccounting period be offset by the expenses that were necessary to producethat revenue, so that the accurate net income or net loss for the period can bereportedThe principle of accounting that all revenues should be matched with theexpenses incurred in earning those revenues during a period of time.The date on which the principal (amount) must be repaidThe principal plus the interest on an instrument; the amount that must bepaid to the payee on the maturity date of the instrument. The amount due atthe maturity or due date of an instrument.Definite fixed amounts stated in terms of currency units, either by law or bycontract agreement. Money or a claim to receive money or an obligation topay a fixed amount of money.A fiscal year ending at a business's lowest point of activity.A year that ends when a business's activities have reached the lowest point inits annual operating cycle.Able to be transferred by endorsement to another party.130
Glossary of Financial TermsTermNet AssetsNet EarningsNet IncomeNet LossNet ProfitNet Realizable ValueNet ReceivablesNet Working CapitalNet WorthNon Current AssetsNote PayableNote ReceivableNotesOperating ActivitiesOperating ExpensesOperating Expenses BudgetDefinitionExcess of the value of securities owned, cash, receivables, and other assets overthe liabilities of the company.A company's total revenue less total expenses, showing what a company earned(or if lost, called net loss) for a set period, usually one year. Listed often literallyas the "bottom line" on the statement of earnings. Also called net income andnet profit.Excess or deficit of total revenues and gains compared with total expenses andlosses for an accounting period. Occurs when revenue earned during anaccounting period exceeds the expenses of the same period. The final figure inthe income statement when revenues exceed expenses. A company's totalrevenue less total expenses, showing what a company earned (or lost, callednet loss) for a set period, usually one year. Listed often literally as the "bottomline" on the statement of earnings. Also called net earnings and net profit.The final figure in the income statement when expenses exceed revenues.A company's total revenue less total expenses, showing what a company earned(or lost, called net loss) for a set period, usually one year. Listed often literallyas the "bottom line" on the statement of earnings. Also called net earningsand net income.The difference between the balance in the Accounts Receivable account andthe Allowance for Doubtful Accounts account; the actual amount of receivablesthat the firm expects to collect.Another name for net realizable value.Current assets minus current liabilities.Similar to equity, the excess of assets over liabilities. The owner's equity in abusiness.The amount of a company's stockholders' equity. Listed as totalstockholders' equity on the statement of financial position.Anything of long-term value to a company, including fixed assets and intangibleassets. Listed in the assets category (after current assets) on the statement offinancial position.A formal written promise to pay a specified amount at a definite future date.A written promise to pay, representing an amount owed by a business.A written promise to pay, representing an amount to be received by a business.An annual report section that provides information essential to fullyunderstanding the financial statements. Notes explain the financial statements'numbers and any significant events affecting them. Notes also provideadditional detail and provide supplementary financial information. Also calledfootnotes.Transactions that enter into the calculation of net income; operating activitiesaffect the income statement.Expenses incurred in the normal operation of the business.A budget that estimates operating expenses for the next fiscal period.131
Page 2 and 3:
TECHNICAL TOOL SERIES 1TRACKING FIN
Page 4 and 5:
INTRODUCTION TOMICROFINANCE STANDAR
Page 6 and 7:
5. PERFORMANCE STANDARDS - CONCEPT,
Page 8 and 9:
ACKNOWLEDGMENTSThe need of the oper
Page 10 and 11:
Tracking Financial Performance Stan
Page 12 and 13:
Page 14 and 15:
Page 16 and 17:
Page 18 and 19:
Page 20 and 21:
Page 22 and 23:
Page 24 and 25:
Page 26 and 27:
Page 28 and 29:
Page 30 and 31:
Page 32 and 33:
Page 34 and 35:
Page 36 and 37:
Page 38 and 39:
Page 40 and 41:
Page 42 and 43:
Page 44 and 45:
Page 46 and 47:
Page 48 and 49:
Page 50 and 51:
Page 52 and 53:
Page 54 and 55:
Page 56 and 57:
Page 58 and 59:
Page 60 and 61:
Page 62 and 63:
Page 64 and 65:
Page 66 and 67:
Page 68 and 69:
Page 70 and 71:
Page 72 and 73:
Page 74 and 75:
Page 76 and 77:
Page 78 and 79:
Page 80 and 81: Tracking Financial Performance Stan
Page 136 and 137: TermStatement of Profit and LossStr
Page 138 and 139: REFERENCESBarrel, Margaret, Michael
show all

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

Create successful ePaper yourself

Delete template?

Save as template?