Excel Macros for Financial Accounting
Expert-defined terms from the Advanced Certificate in Excel for Financial Accounting (translated title from another language to English) course at London School of Business and Administration. Free to read, free to share, paired with a globally recognised certification pathway.
Absolute Reference is a type of cell reference in Excel that refers to a… #
Absolute Reference is a type of cell reference in Excel that refers to a specific cell or range of cells that will not change when the formula is copied to another location, it is denoted by a dollar sign ($) before the column letter and row number, for example, $A$1.
Add #
in is a software program that can be installed to add new functionality to Excel, such as additional formulas, tools, or features, for example, the Analysis ToolPak.
Algorithm is a set of instructions that is used to solve a specific probl… #
Algorithm is a set of instructions that is used to solve a specific problem or perform a particular task, in the context of Excel Macros for Financial Accounting, algorithms can be used to automate tasks such as data analysis, reporting, and forecasting.
Alpha is a measure of the excess return of a portfolio relative to the re… #
Alpha is a measure of the excess return of a portfolio relative to the return of a benchmark index, it is often used to evaluate the performance of investment portfolios.
Amortization is the process of gradually writing off the cost of an intan… #
Amortization is the process of gradually writing off the cost of an intangible asset over its useful life, it is commonly used in financial accounting to account for the cost of assets such as patents, copyrights, and goodwill.
Annualized Return is the return of an investment over a one #
year period, it is calculated by multiplying the return over a shorter period by the number of periods in a year.
Application is a software program that performs a specific task or set of… #
Application is a software program that performs a specific task or set of tasks, in the context of Excel Macros for Financial Accounting, applications can be used to automate tasks such as data analysis, reporting, and forecasting.
Array Formula is a type of formula in Excel that can perform operations o… #
Array Formula is a type of formula in Excel that can perform operations on arrays, or lists of values, it is often used to perform complex calculations and data analysis.
Asset is a resource that has value and is owned or controlled by a busine… #
Asset is a resource that has value and is owned or controlled by a business or individual, examples of assets include cash, inventory, and property.
Audit is a process of examining and evaluating the financial statements a… #
Audit is a process of examining and evaluating the financial statements and records of a business or organization, it is often performed by external auditors to ensure the accuracy and completeness of financial statements.
Automation is the use of technology, such as macros and add #
ins, to automate tasks and processes, in the context of Excel Macros for Financial Accounting, automation can be used to streamline tasks such as data analysis, reporting, and forecasting.
Average is a measure of the central tendency of a set of values, it is of… #
Average is a measure of the central tendency of a set of values, it is often used to summarize and describe data, there are different types of averages, including the mean, median, and mode.
Balance Sheet is a financial statement that shows the financial position… #
Balance Sheet is a financial statement that shows the financial position of a business or organization at a specific point in time, it is often used to evaluate the financial health and stability of a business.
Benchmark is a standard or reference point that is used to evaluate the p… #
Benchmark is a standard or reference point that is used to evaluate the performance of a portfolio or investment, it is often used to compare the performance of different investments or portfolios.
Beta is a measure of the volatility of a portfolio or investment relative… #
Beta is a measure of the volatility of a portfolio or investment relative to the market as a whole, it is often used to evaluate the risk of an investment.
Break #
Even Analysis is a technique used to determine the point at which a business or investment will break even, it is often used to evaluate the viability of a business or investment.
Budget is a plan for the allocation of resources over a specific period o… #
Budget is a plan for the allocation of resources over a specific period of time, it is often used to manage and control expenses, revenues, and cash flows.
Budgeting is the process of creating and managing a budget, it is often u… #
Budgeting is the process of creating and managing a budget, it is often used to ensure that a business or organization is operating within its means and achieving its financial goals.
Calculation is the process of performing mathematical operations to arriv… #
Calculation is the process of performing mathematical operations to arrive at a specific result or answer, in the context of Excel Macros for Financial Accounting, calculations can be used to perform tasks such as data analysis, reporting, and forecasting.
Capital is a type of asset that represents the ownership or equity intere… #
Capital is a type of asset that represents the ownership or equity interest in a business or organization, examples of capital include common stock and retained earnings.
Cash Flow is the inflow or outflow of cash and cash equivalents over a sp… #
Cash Flow is the inflow or outflow of cash and cash equivalents over a specific period of time, it is often used to evaluate the liquidity and financial health of a business.
Cash Flow Statement is a financial statement that shows the inflows and o… #
Cash Flow Statement is a financial statement that shows the inflows and outflows of cash and cash equivalents over a specific period of time, it is often used to evaluate the liquidity and financial health of a business.
Cell Reference is a way of referring to a specific cell or range of cells… #
Cell Reference is a way of referring to a specific cell or range of cells in Excel, it is often used in formulas and functions to perform calculations and data analysis.
Chart is a visual representation of data, it is often used to summarize a… #
Chart is a visual representation of data, it is often used to summarize and communicate complex data and information.
Code is a set of instructions that is used to write a macro or program, i… #
Code is a set of instructions that is used to write a macro or program, in the context of Excel Macros for Financial Accounting, code can be used to automate tasks such as data analysis, reporting, and forecasting.
Compound Interest is the interest earned on both the principal amount and… #
Compound Interest is the interest earned on both the principal amount and any accrued interest over time, it is often used to calculate the future value of an investment.
Conditional Formatting is a feature in Excel that allows users to highlig… #
Conditional Formatting is a feature in Excel that allows users to highlight cells based on specific conditions or criteria, it is often used to draw attention to important information or trends in data.
Consolidation is the process of combining the financial statements of mul… #
Consolidation is the process of combining the financial statements of multiple businesses or organizations into a single set of financial statements, it is often used to evaluate the financial performance of a group of companies.
Constraint is a limitation or restriction that is imposed on a business o… #
Constraint is a limitation or restriction that is imposed on a business or organization, it is often used to evaluate the feasibility of a project or investment.
Cost is a type of expense that is incurred by a business or organization,… #
Cost is a type of expense that is incurred by a business or organization, examples of costs include labor, materials, and overhead.
Cost #
Benefit Analysis is a technique used to evaluate the costs and benefits of a project or investment, it is often used to determine whether a project or investment is viable.
Credit is a type of transaction that increases a business or organization… #
Credit is a type of transaction that increases a business or organization's assets or equity, examples of credits include sales and loans.
Currency is a type of asset that represents a medium of exchange, example… #
Currency is a type of asset that represents a medium of exchange, examples of currencies include dollars and euros.
Data Analysis is the process of examining and evaluating data to extract… #
Data Analysis is the process of examining and evaluating data to extract insights and meaning, it is often used to support business decisions and evaluate performance.
Data Mining is the process of automatically discovering patterns and rela… #
Data Mining is the process of automatically discovering patterns and relationships in large datasets, it is often used to support business decisions and evaluate performance.
Data Validation is a feature in Excel that allows users to restrict the t… #
Data Validation is a feature in Excel that allows users to restrict the type of data that can be entered into a cell, it is often used to ensure the accuracy and consistency of data.
Debit is a type of transaction that decreases a business or organization'… #
Debit is a type of transaction that decreases a business or organization's assets or equity, examples of debits include expenses and dividends.
Depreciation is the process of gradually writing off the cost of a tangib… #
Depreciation is the process of gradually writing off the cost of a tangible asset over its useful life, it is commonly used in financial accounting to account for the cost of assets such as property, plant, and equipment.
Discount Rate is the interest rate that is used to calculate the present… #
Discount Rate is the interest rate that is used to calculate the present value of a future cash flow, it is often used to evaluate the viability of a project or investment.
Economic Value Added is a measure of a company's financial performance, i… #
Economic Value Added is a measure of a company's financial performance, it is calculated by subtracting the cost of capital from net operating profit after taxes.
Efficiency is a measure of a business or organization's ability to use re… #
Efficiency is a measure of a business or organization's ability to use resources effectively, it is often used to evaluate the performance of a business or organization.
Error is a type of mistake or inaccuracy that can occur in data or calcul… #
Error is a type of mistake or inaccuracy that can occur in data or calculations, it is often used to evaluate the reliability and accuracy of data and information.
Excel is a software program that is used for data analysis, reporting, an… #
Excel is a software program that is used for data analysis, reporting, and forecasting, it is often used in financial accounting to perform tasks such as budgeting, forecasting, and financial analysis.
Expense is a type of cost that is incurred by a business or organization,… #
Expense is a type of cost that is incurred by a business or organization, examples of expenses include salaries, rent, and utilities.
Financial Accounting is the process of recording, classifying, and report… #
Financial Accounting is the process of recording, classifying, and reporting financial information, it is often used to evaluate the financial performance of a business or organization.
Financial Analysis is the process of examining and evaluating financial d… #
Financial Analysis is the process of examining and evaluating financial data to extract insights and meaning, it is often used to support business decisions and evaluate performance.
Financial Modeling is the process of creating a mathematical representati… #
Financial Modeling is the process of creating a mathematical representation of a financial situation