Dictionary Of Finance

Sr No. Words Meaning
1 Absolute liability Strict Liability
2 Accounting standards Rules to be followed in the preparation of company accounts.
3 Accounts payable Amount owed to trade creditors and included as current.
4 Accounts receivable Invoiced or billed amounts owing to a business which are outstanding from balance sheet.
5 After-hours trading 24-hours trading.
6 Annual accounts All limited liability companies (incorporation) must file accounts or financial statements for public inspection each year.
7 Annual general meeting(AGM) All public limited companies (incorporation) in the UK are required by law to invite all shareholders to a general meeting with directors each year.(US = annual meeting, annual stockholders’ meeting.) Among other things the meeting elects directors, appoints auditors and fixes their remuneration.
8 Articles of association Memorandum of association.
9 Asked Price Offer Price.
10 Asset Something that has value or earning power
11 Assets value Net Assets
12 Associate company A company over which another company has some influence, normally through a minority shareholder of less than 50 per cent but more than 20 per cent.
13 Audit The verification of accounts by an external accountant. Larger limited companies (Incorporation) are required under the Companies acts to have their accounts audited by a member of a recognized accountancy body.
14 Authorized Capital The amount of share capital fixed in the memorandum of association and the articles of association of a company as required by the companies acts.
15 Average A single number calculated to summarize a group of numbers.