Intro to Financial Math

• Account register: a separate form for recording all checking account transactions and showing the account balance
• Accounts payable: a current liability for merchandise or services that has not been paid for
• Accounts receivable: a current asset that is the money owed by the customers
• Accumulated depreciation: the current year's depreciation plus all previous years' depreciation
• Accumulation phase of an annuity: the time when money is being paid into the fund and earnings are being added to the fund
• Acid test Ratio or quick ratio: the ratio of quick current assets to current liabilities
• Adjustable rate mortgage: the interest rates may change during the time of the loan
• Adjusted balance due at maturity: the remaining balance at maturity after one or more partial payments have been made
• Adjusted gross income: the income that remains after allowable adjustments have been made; total or gross income minus certain employee expenses and allowable deductions such as IRAs, student loan interest, tuition, and fees
• Adjusted principal: the remaining principal after a partial payment has been properly credited
• Adjusted statement balance : consists of the balance on the bank statement plus any outstanding deposits minus any outstanding checks
• Adjustment: an amount that can be subtracted from the gross income, disqualifying IRAs, tax-sheltered annuities, 401k, or employer-sponsored child care or medical plans
• Amortization: the process for repaying a loan through equal payments at a specified rate for a specified length of time
• Amortization schedule: a table that shows the balance of principle and interest for each payment of the mortgage
• Amount credited: the sum of the partial payments and the partial discount
• Amount financed: the cash price minus the down payment
• Annual percentage yield: effective rate of interest for an investment
• Annual percentage rate: the equivalent rate of an installment loan that is equivalent to an annual simple interest rate, effective rate of interest for a loan
• Annuity: a contract between a person and an insurance company for receiving and disbursing money for the annuitant or the beneficiary of the annuitant
• Annuity certain: an annuity paid over a guaranteed number of periods
• Annuity Payment: a series of equal periodic payments put into an interest-bearing account for a specific number of periods
• Assessed value: a specified percent of the estimated market value of a property
• Asset classes: different categories of investments that provide returns in different ways, including stocks, bonds, cash, and real estate
• Asset turnover ratio: the ratio of net sales to the average total assets
• Assets: properties or anything of monetary value owned by a business, including anything that can be exchanged for cash or other property
• Automatic drafts: periodic withdrawals that the owner of an account authorizes to be made electronically
• ATM: an electronic banking station that accepts deposits and disburses cash when you use an authorized ATM card, a debit card, or some credit cards
• Average Daily Balance: the average daily balances for each day of the billing cycle
• Back-end load: the sales charge or commission on a mutual fund that is paid at the time the shares are sold
• Balance sheet: a financial statement that indicates the worth or financial condition of a business as of a certain date
• Bank discount: the interest or fee subtracted from the amount borrowed at the time the loan is made
• Bank memo: a notification of a transaction error
• Billing cycle


  The days that are included on a statement or bill
• Beneficiary


  The individual, organization, or business to whom the proceeds of an insurance policy are payable
• Bodily injury


  Personal injury of a person other than the insured or members of the insurance's household that is sustained in a vehicle accident
• Benchmark


  A standard against which the performance of a security can be measured
• Bank statement


  An account record periodically provided by the bank for matching your records with the bank's records
• Bond market


  The structure for buying and selling bonds
• Buildings


  Value of buildings and structures owned by a business
• By inspection


  Using your numbers sent to mentally perform a mathematical process