Education

Have you ever wondered what all these financial terms are that you hear? Here is a brief list of different financial terms to help you understand the terms that are being used.A helpful way to remember the fundamentals is that nearly all finance revolves around four core concepts:

Assets, Liabilities, Income, and Cash flow.

Understanding those provides the foundation for investing, business finance, accounting, and personal wealth management.

Term

Gross Income:

Net Income:

Asset

Liability

Equity

Revenue

Profit

Cash Flow

Capital

Investment

Dividend

Interest

Inflation

Principal

Return on Investment (ROI)

Net Worth

Liquidity

Balance Sheet

Income Statement

Diversification

Market Capitalization (Market Cap)

Credit Score

Definition

Total income before taxes and deductions.

Income remaining after taxes and deductions.

Anything of value owned by a person or business that can provide future economic benefit.

A debt or financial obligation owed to another person or organization.

The owner's share of a business after liabilities are deducted from assets.

The total income generated from sales of goods or services before expenses are deducted.

The money remaining after all expenses, taxes, and costs have been paid.

The movement of money into and out of a business or personal account.

Money or assets available for investment or business operations.

An asset purchased with the expectation of generating income or increasing in value.

A payment made by a company to its shareholders, usually from profits.

The cost of borrowing money or the earnings from lending money.

The general increase in prices over time, reducing purchasing power.

The original amount of money invested or borrowed, excluding interest.

A measure of profitability calculated by comparing gains to the cost of an investment.

The value of all assets owned minus all liabilities owed.

How quickly an asset can be converted into cash without losing significant value.

A financial statement showing assets, liabilities, and equity at a specific point in time.

A financial report showing revenue, expenses, and profits over a period.

Spreading investments across different assets to reduce risk.

The total value of a company's outstanding shares of stock.

A numerical rating that indicates a person's creditworthiness and borrowing risk.

A helpful way to remember the fundamentals is that nearly all finance revolves around four core concepts:


Assets, Liabilities, Income, and Cash flow.


Understanding those provides the foundation for investing, business finance, accounting, and personal wealth management.



Douglas Branch

1600 N. Panamerican Avenue • PO Drawer 1059 • Douglas, Arizona 85608

(520) 364-8401 • Fax (520) 364-2967

Hours of Operation:

Monday - Thursday:   9:00AM - 4:30 PM

Friday:                       9:00AM - 6:00 PM

Benson Branch

182 E. 4th Street • PO Box 2317 • Benson, Arizona 85602:

(520) 586-7095 • Fax (520) 586-7097

Hours of Operation:

Monday - Friday:    9:00 AM - 4:30 PM


*Closed all Federal Holidays

Copyright © 2026 Southeastern Arizona Federal Credit Union