Financial Definitions

Accounting

Accounting

Accounting is a system of gathering, summarizing, and communicating financial information for a business firm, government, or other organization. Accounting, also called accountancy, enables decision makers to interpret financial information and use the results in planning for the future. Business people often call accounting the “language of business” because they use accounting data in communicating about a firm’s activities. Information…

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National Budget

National Budget

National budget is the financial plan for a country’s government. The budget states how much money the government intends to spend during a year, what it intends to spend it on, and where it expects to get the money to pay for that spending. A budget usually covers a fiscal year. In Australia and New Zealand, the fiscal year begins…

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Budget

Budget

Budget is a financial plan that helps people make the best possible use of their money. It identifies sources of income and assists in planning expenditures. Income and expenses may vary, and so most budgets consist—at least in part—of estimates. Individuals, families, businesses, governments, and various organizations all use a budget. A child may have only a few dollars to…

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Financial Times Stock Exchange Index

Financial Times Stock Exchange Index

Financial Times Stock Exchange Index is a number that represents overall gains and losses of stocks traded on the London stock market. The number is commonly called the FTSE 100, often pronounced to sound like “footsie.” An index calculation company called FTSE International Limited determines and reports the number. The Financial Times—an international business publisher based in London—and the London…

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Greenback

Greenback

Greenback is a popular name for United States notes, a kind of paper money. The United States government first issued paper currency in 1861 to finance its Civil War operations. The first bills were redeemable in coins. But after 1862, the notes were only promises by the United States to pay. The reverse side of the bills was printed in…

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