Basic concepts of finance

Accounting Concepts, Principles and Basic Terms Definition and introduction The worldview of accounting and accountants may certainly involve some unhelpful characters poring over formidable figures stacked up in indecipherable columns. However, a short and sweet description of accounting does exist: Accounting is the language of business efficiently communicated by well-organised and honest professionals called accountants. A more academic definition of accounting is given by the American Accounting Association:

Basic concepts of finance

Is it really all that special? Well, I believe that knowledge truly is power.

Unit One - Basic Economic Concepts

So with that idea in mind, I put together this basic financial literacy guide to help you strengthen your business savvy. I also threw in a few economic concepts, just to give you some extra MBA flavor.

But there are some basic finance concepts that absolutely can help. And you may even surprise a few people with what you do know! Do you ever wonder what happens to your money?

And what the bank gets in return? Enter the lending concept. Banks use your money to make money for themselves by creating all kinds of loan products.

He tells the frightened customers: As if I had the money back in a safe.

Basic concepts of finance

And they are a good example of how a bank really operates. So where does your money go? And even though you can get it when you want it. But meanwhile, the bank puts it to work in all kinds of bank products, earning them money.

Ideally more money than they pay you. In a way, they are creating money that goes into the economy and helps create even more money.

Please note that this is not the same as trickle down theorywhere rich folks get the money so they can then invest it. And, as the theory explains, that investment will eventually reach the rest of us. Although there are ample arguments on both sides.

An alternative theory is to give the money to the poor and middle class first, since they are more likely to spend it. This puts it directly into the economy — like an economic booster shot. Sorry for the short detour.

How Banks Create Money. What about bank interest rates? As a bank customer, you want to earn as much interest as possible from your deposits.

Basic Economic Concepts

And you want to pay the lowest interest rates possible on any debt you have. Profit is truly one of the most familiar of all basic finance concepts! And the larger the gap between what the bank pays for deposits and what they charge for loans, the more profit they make.How to Add, Subtract, Multiply, and Divide with Un.


Anything that can be counted is a unit. Because you can count units, this means that you c In Basic Math. North South University is the first private university of Bangladesh, It was established in Approved by the University Grants Commission (UGC) of Bangladesh.

Five Concepts of Finance - Business Finance

This in-depth package of 5 courses explains the ins-and-outs of accounting as it pertains to financial analysis. Dive into financial modeling, valuation, company analysis, and more to fully grasp the fundamentals required for a career in finance.

Basic Concepts on Tax Systems in India: Introduction. Objectives. Importance, History, Present Act. Meaning of Tax Management.

Basic concepts of finance

Person [Sec 2(31)] Assessee [ Sec 2(7)]. Wants - Simply the desires of citizens. Wants are different from needs as we will see below. Wants are a means of expressing a perceived need.

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Wants are broader than needs. Needs: These are basic requirements for survival like food and water and recent years we have seen a percieved shift of certain items from wants to needs.

In this course, you will learn all the concepts and terminologies related to the Data Warehouse, such as the OLTP, OLAP, Dimensions, Facts and much more, along with other concepts related to it such as what is meant by Start Schema, Snow flake Schema, other options available and their differences.

7 Finance Concepts Everyone Should Understand - NerdWallet