Most common business terminologies
Human resources (HR) is a department in a company that is responsible for all aspects of employee management. This includes recruiting, hiring, training, developing, and retaining employees. HR also handles employee benefits, compensation, and relations with employees. The goal of…
In business, administration refers to the management of a company’s day-to-day operations. It includes tasks such as planning, organizing, staffing, directing, and controlling. The goal of administration is to ensure that the company runs smoothly and efficiently, and that it…
A trial balance is a bookkeeping worksheet that lists the balances of all ledgers (accounts) that have nonzero balances. A trial balance is an important step in the accounting process, because it helps identify any mathematical errors throughout the first three steps in the cycle: journalizing transactions,…
An income statement is a financial report that shows a company’s profit and loss over a period of time, usually a quarter or a year. It shows how a company’s revenue (sales or income) is transformed into net income (profit or loss) by subtracting all expenses from both operating and non-operating…
A cash flow statement is a financial report that details how cash flows i.e. entered and left a business during a reporting period. It shows how a company manages its cash position, meaning how well the company generates cash to pay its debt obligations…
A balance sheet is a financial statement that reports a company’s assets, liabilities, and shareholder equity at a specific point in time1. It provides a snapshot of a company’s finances (what it owns and owes) as of the date of publication. It also shows how the assets are…
Accounting is the process of recording, classifying and summarizing financial transactions. It provides a clear picture of the financial health of your organization and its performance, which can serve as a catalyst for resource management and strategic growth. Accounting also involves the communication of financial and non-financial information…