FT Guide to Finance for Non-Financial Managers

Appendix G

Glossary of Finance and Investment Terms

Accrued expenses These are expenses due but for which no invoice has yet been received. They may include expenses such as employee wages owed prior to payday, utility charges not yet billed, interest due but unpaid, etc.

Accumulated depreciation This represents the sums accounted for to reflect the decline in useful value of a fixed asset due to wear and tear from use, or obsolescence. This number is added to each period and thus is ‘accumulated’.

Administrative expense Management salaries, office staff payroll, office expenses, rent, phones, utilities, etc.

Asset Something of value that is owned by or owed to an organisation.

Asset turnover ratio The asset turnover ratio is a good measurement ...