Basic financial concepts

Basic financial concepts are the basic rules that relate to equity, liabilities, and assets. Some of those concepts are cash budget, line of credit, reserve fund, capital budget, asset, equity, and earnings. Financial markets are the place where all these concepts are mathematically calculated and any one can get information regarding financial markets. There are different financial markets including equity market, bond market, merchant cash advance market, money market and many more. All these markets help in dealing with financial concepts such as derivatives, interest rates, credit rates, equity securities, mortgages, debentures, negotiable instruments, financial plan, mortgage, hypothecation, cross sell, forward contract, swap agreements, forward outlook, financial analysis and risk management.

Accounting principles are also related with basic financial terms and concepts. There are many accounting concepts like cost of goods sold, gross sale, cost of goods added, gross revenue, income statement, balance sheet, reporting and basic accounting principles. A company’s financial records must be maintained properly so that the future activities can be predicted accurately. Management must ensure that all the financial records are correct so that there would be no confusion later on. The proper recording of financial transactions and accurate reporting must be followed at every step of the business so that one can have a complete idea of the company’s past, present and future financial conditions.

These days, almost everyone has become interested in the field of finance because of the presence of so many mediums that helps us get information easily. Internet is one of the basic medium where one can get information about finance and accounting. Many websites are dedicated to providing the beginners with the required basics so that they can understand the principles of finance and banking. Various financial books, journals, articles, magazines and newsletters are also available online which provides basic information about finance and accounting.