Finance has its own “language.”  Some of the most commonly used terms in corporate finance are:

Assets:  Items owned by the business (see Capital Assets, Current Assets and Fixed Assets)

Bonds: Certificates of debt which are issued by an organization in order to raise funding. The bond holder earns a fixed rate of interest (usually) and the bond must be repaid by a specific date.

Capital:  Assets available to be invested with the intention of creating new assets.

Capital assets:  Tangible property that is not easily converted into cash. Capital assets are usually held long-term and include things like buildings, equipment, and other owned items.

Capital budget: The plan a company has to finance existing or new capital assets. Organizations usually have a capital budget and an operating budget.

Current assets:  The company’s total of cash, accounts receivable, and other assets that could be converted into cash within a year. This is the money usually used for day-to-day operations.

Debt financing:  Creating capital by incurring debt such as by selling bonds or notes.

Equity:  1) The total of a company’s assets minus its liabilities;  2) Ownership interest in a corporation in the form of stock

Expenses:  Any cost of operating the business

Fixed assets:  Long-term, tangible assets that are used by the business tnd that the organization does not plan to convert to cash in the current or next fiscal year.

Liabilities:  A financial obligation such as debts, claims, or losses

Operating budget:   A projection of estimated income and expenses during a specific period. An operating budget is short-term, usually for one year, while a capital budget is long-term.

Revenue:  Income generated as part of the operations of the organization before liabilities are subtracted.