Data Visualization for Financial Insights
Expert-defined terms from the Professional Certificate in Excel for Accounting Professionals course at London School of Business and Administration. Free to read, free to share, paired with a professional course.
Account Analysis refers to the process of examining and interpreting financial d… #
Account Analysis refers to the process of examining and interpreting financial data to understand an organization's financial performance and position, it involves identifying trends, analyzing variances, and evaluating financial ratios to provide insights for decision-making, related terms include financial statement analysis, financial modeling, and financial forecasting, for example, account analysis can help identify areas of inefficiency and opportunity for cost reduction.
Accounting Equation is a fundamental concept in accounting that represents the r… #
Accounting Equation is a fundamental concept in accounting that represents the relationship between a company's assets, liabilities, and equity, it is expressed as Assets = Liabilities + Equity, and is used to analyze and interpret financial statements, related terms include balance sheet, income statement, and cash flow statement, for instance, the accounting equation can be used to evaluate a company's financial position and performance.
Accounts Payable refers to the amount of money that a company owes to its suppli… #
Accounts Payable refers to the amount of money that a company owes to its suppliers and creditors, it is a current liability that is typically paid within a short period of time, related terms include accounts receivable, inventory, and cash flow, for example, accounts payable can be used to manage and optimize a company's working capital.
Accounts Receivable is the amount of money that a company is owed by its custome… #
Accounts Receivable is the amount of money that a company is owed by its customers, it is a current asset that is typically collected within a short period of time, related terms include accounts payable, inventory, and cash flow, for instance, accounts receivable can be used to evaluate a company's credit policy and collection efforts.
Amortization is the process of allocating the cost of an intangible asset over i… #
Amortization is the process of allocating the cost of an intangible asset over its useful life, it is a non-cash expense that is typically recorded on the income statement, related terms include depreciation, assets, and liabilities, for example, amortization can be used to match the cost of an intangible asset with the benefits it provides.
Asset Allocation refers to the process of dividing a portfolio among different a… #
Asset Allocation refers to the process of dividing a portfolio among different asset classes, such as stocks, bonds, and cash, it is a key component of investment strategy and risk management, related terms include diversification, portfolio management, and risk tolerance, for instance, asset allocation can be used to balance and optimize a portfolio's returns and risk.
Audit Committee is a group of independent directors that oversee a company's fin… #
Audit Committee is a group of independent directors that oversee a company's financial reporting and internal controls, it is responsible for ensuring the accuracy and reliability of financial statements, related terms include corporate governance, internal audit, and risk management, for example, an audit committee can be used to evaluate and improve a company's financial reporting and internal controls.
Balance Sheet is a financial statement that presents a company's financial posit… #
Balance Sheet is a financial statement that presents a company's financial position at a specific point in time, it includes assets, liabilities, and equity, and is used to evaluate a company's financial position and performance, related terms include income statement, cash flow statement, and financial ratios, for instance, a balance sheet can be used to analyze and interpret a company's financial position and performance.
Benchmarking is the process of comparing a company's performance to that of its… #
Benchmarking is the process of comparing a company's performance to that of its peers or industry averages, it is used to identify areas of strength and weakness, and to inform strategic decisions, related terms include performance metrics, key performance indicators, and industry analysis, for example, benchmarking can be used to evaluate a company's financial performance and identify areas for improvement.
Break #
Even Analysis is a method used to determine the point at which a company's revenue equals its costs, it is used to evaluate the viability of a business or project, related terms include cost-benefit analysis, financial modeling, and decision-making, for instance, break-even analysis can be used to determine the feasibility of a new product or service.
Budgeting is the process of creating a financial plan that outlines projected in… #
Budgeting is the process of creating a financial plan that outlines projected income and expenses over a specific period of time, it is used to manage and control a company's finances, related terms include forecasting, financial planning, and financial management, for example, budgeting can be used to allocate resources and prioritize spending.
Business Intelligence refers to the process of collecting, analyzing, and interp… #
Business Intelligence refers to the process of collecting, analyzing, and interpreting data to inform business decisions, it is used to gain insights and drive business growth, related terms include data analytics, data visualization, and decision-making, for instance, business intelligence can be used to identify trends and opportunities for business expansion.
Capital Budgeting is the process of evaluating and selecting investments in long #
term assets, such as property, plant, and equipment, it is used to maximize returns and minimize risk, related terms include investment analysis, financial modeling, and decision-making, for example, capital budgeting can be used to evaluate the feasibility of a new project or investment.
Cash Flow is the movement of money into or out of a company, it is a critical… #
Cash Flow is the movement of money into or out of a company, it is a critical component of financial management and is used to evaluate a company's liquidity and solvency, related terms include cash flow statement, cash flow ratio, and working capital, for instance, cash flow can be used to manage and optimize a company's working capital.
Cash Flow Statement is a financial statement that presents a company's inflows a… #
Cash Flow Statement is a financial statement that presents a company's inflows and outflows of cash over a specific period of time, it is used to evaluate a company's liquidity and solvency, related terms include balance sheet, income statement, and financial ratios, for example, a cash flow statement can be used to analyze and interpret a company's cash flows and identify areas for improvement.
Cost Accounting is the process of collecting, analyzing, and reporting financial… #
Cost Accounting is the process of collecting, analyzing, and reporting financial data related to the costs of producing goods or services, it is used to manage and control costs, related terms include financial accounting, management accounting, and financial analysis, for instance, cost accounting can be used to identify areas of inefficiency and opportunity for cost reduction.
Cost #
Benefit Analysis is a method used to evaluate the costs and benefits of a project or investment, it is used to determine whether a project is feasible and profitable, related terms include financial modeling, decision-making, and investment analysis, for example, cost-benefit analysis can be used to evaluate the viability of a new project or investment.
Credit Analysis is the process of evaluating a borrower's creditworthiness, it i… #
Credit Analysis is the process of evaluating a borrower's creditworthiness, it is used to determine the likelihood of loan repayment, related terms include credit scoring, credit rating, and lending, for instance, credit analysis can be used to evaluate the creditworthiness of a potential borrower.
Data Mining is the process of discovering patterns and relationships in large da… #
Data Mining is the process of discovering patterns and relationships in large datasets, it is used to gain insights and drive business growth, related terms include data analytics, data visualization, and business intelligence, for example, data mining can be used to identify trends and opportunities for business expansion.
Data Visualization is the process of presenting data in a graphical or visual fo… #
Data Visualization is the process of presenting data in a graphical or visual format, it is used to communicate insights and drive business decisions, related terms include data analytics, business intelligence, and data mining, for instance, data visualization can be used to present complex data in a clear and concise manner.
Decision Tree is a graphical representation of a decision #
making process, it is used to evaluate options and select the best course of action, related terms include decision-making, financial modeling, and investment analysis, for example, a decision tree can be used to evaluate the feasibility of a new project or investment.
Depreciation is the process of allocating the cost of a tangible asset over its… #
Depreciation is the process of allocating the cost of a tangible asset over its useful life, it is a non-cash expense that is typically recorded on the income statement, related terms include amortization, assets, and liabilities, for instance, depreciation can be used to match the cost of a tangible asset with the benefits it provides.
Discounted Cash Flow is a method used to evaluate the present value of future ca… #
Discounted Cash Flow is a method used to evaluate the present value of future cash flows, it is used to determine the value of an investment or project, related terms include financial modeling, investment analysis, and decision-making, for example, discounted cash flow can be used to evaluate the feasibility of a new project or investment.
Economic Value Added is a measure of a company's financial performance, it is ca… #
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, related terms include financial performance, financial metrics, and financial analysis, for instance, economic value added can be used to evaluate a company's financial performance and identify areas for improvement.
Financial Accounting is the process of collecting, analyzing, and reporting fina… #
Financial Accounting is the process of collecting, analyzing, and reporting financial data for external stakeholders, it is used to provide insights into a company's financial position and performance, related terms include management accounting, financial analysis, and financial reporting, for example, financial accounting can be used to prepare financial statements and comply with regulatory requirements.
Financial Analysis is the process of examining and interpreting financial data t… #
Financial Analysis is the process of examining and interpreting financial data to understand a company's financial performance and position, it is used to identify trends and opportunities for business growth, related terms include financial modeling, financial planning, and financial management, for instance, financial analysis can be used to evaluate a company's financial performance and identify areas for improvement.
Financial Forecasting is the process of predicting a company's future financial… #
Financial Forecasting is the process of predicting a company's future financial performance, it is used to inform strategic decisions and drive business growth, related terms include financial modeling, financial planning, and financial management, for example, financial forecasting can be used to predict a company's future financial performance and identify areas for improvement.
Financial Management is the process of planning, organizing, and controlling a c… #
Financial Management is the process of planning, organizing, and controlling a company's financial activities, it is used to maximize returns and minimize risk, related terms include financial planning, financial analysis, and financial reporting, for instance, financial management can be used to manage and optimize a company's financial resources.
Financial Modeling is the process of creating a mathematical representation of a… #
Financial Modeling is the process of creating a mathematical representation of a company's financial performance, it is used to forecast future financial performance and drive business decisions, related terms include financial analysis, financial planning, and financial management, for example, financial modeling can be used to predict a company's future financial performance and identify areas for improvement.
Financial Planning is the process of creating a comprehensive plan for a company… #
Financial Planning is the process of creating a comprehensive plan for a company's financial activities, it is used to maximize returns and minimize risk, related terms include financial management, financial analysis, and financial reporting, for instance, financial planning can be used to develop a company's financial strategy and allocate resources.
Financial Reporting is the process of preparing and presenting financial stateme… #
Financial Reporting is the process of preparing and presenting financial statements to external stakeholders, it is used to provide insights into a company's financial position and performance, related terms include financial accounting, financial analysis, and financial management, for example, financial reporting can be used to prepare financial statements and comply with regulatory requirements.
Financial Statement Analysis is the process of examining and interpreting financ… #
Financial Statement Analysis is the process of examining and interpreting financial statements to understand a company's financial performance and position, it is used to identify trends and opportunities for business growth, related terms include financial analysis, financial modeling, and financial planning, for instance, financial statement analysis can be used to evaluate a company's financial performance and identify areas for improvement.
Forecasting is the process of predicting a company's future financial performanc… #
Forecasting is the process of predicting a company's future financial performance, it is used to inform strategic decisions and drive business growth, related terms include financial modeling, financial planning, and financial management, for example, forecasting can be used to predict a company's future financial performance and identify areas for improvement.
GAAP is an acronym for Generally Accepted Accounting Principles, it is a set of… #
GAAP is an acronym for Generally Accepted Accounting Principles, it is a set of rules and guidelines that govern financial accounting and reporting, related terms include financial accounting, financial reporting, and financial analysis, for instance, GAAP can be used to ensure that financial statements are prepared and presented in a consistent and comparable manner.
IFRS is an acronym for International Financial Reporting Standards, it is a set… #
IFRS is an acronym for International Financial Reporting Standards, it is a set of rules and guidelines that govern financial accounting and reporting, related terms include financial accounting, financial reporting, and financial analysis, for example, IFRS can be used to ensure that financial statements are prepared and presented in a consistent and comparable manner.
Income Statement is a financial statement that presents a company's revenues and… #
Income Statement is a financial statement that presents a company's revenues and expenses over a specific period of time, it is used to evaluate a company's financial performance and identify areas for improvement, related terms include balance sheet, cash flow statement, and financial ratios, for instance, an income statement can be used to analyze and interpret a company's revenues and expenses.
Internal Control is a system of policies and procedures that are designed to ens… #
Internal Control is a system of policies and procedures that are designed to ensure the accuracy and reliability of financial reporting, it is used to manage and mitigate risk, related terms include risk management, internal audit, and financial reporting, for example, internal control can be used to ensure that financial statements are accurate and reliable.
Investment Analysis is the process of evaluating the potential return on investm… #
Investment Analysis is the process of evaluating the potential return on investment of a project or asset, it is used to determine whether an investment is feasible and profitable, related terms include financial modeling, decision-making, and risk management, for instance, investment analysis can be used to evaluate the feasibility of a new project or investment.
Key Performance Indicators are metrics that are used to evaluate a company's fin… #
Key Performance Indicators are metrics that are used to evaluate a company's financial performance and progress towards its goals, they are used to track and measure performance, related terms include financial metrics, financial analysis, and financial reporting, for example, key performance indicators can be used to evaluate a company's financial performance and identify areas for improvement.
Liquidity is a measure of a company's ability to meet its short #
term obligations, it is used to evaluate a company's financial health and solvency, related terms include cash flow, working capital, and financial ratios, for instance, liquidity can be used to evaluate a company's ability to meet its short-term obligations.
Management Accounting is the process of collecting, analyzing, and reporting fin… #
Management Accounting is the process of collecting, analyzing, and reporting financial data for internal stakeholders, it is used to inform strategic decisions and drive business growth, related terms include financial accounting, financial analysis, and financial management, for example, management accounting can be used to develop a company's financial strategy and allocate resources.
Market Analysis is the process of examining and interpreting market trends and d… #
Market Analysis is the process of examining and interpreting market trends and data to understand a company's position and opportunities, it is used to inform strategic decisions and drive business growth, related terms include market research, competitive analysis, and financial analysis, for instance, market analysis can be used to identify trends and opportunities for business expansion.
Net Present Value is a method used to evaluate the present value of future cash… #
Net Present Value is a method used to evaluate the present value of future cash flows, it is used to determine the value of an investment or project, related terms include financial modeling, investment analysis, and decision-making, for example, net present value can be used to evaluate the feasibility of a new project or investment.
Operating Cash Flow is a measure of a company's ability to generate cash from it… #
Operating Cash Flow is a measure of a company's ability to generate cash from its operations, it is used to evaluate a company's financial health and solvency, related terms include cash flow, working capital, and financial ratios, for instance, operating cash flow can be used to evaluate a company's ability to generate cash from its operations.
Payback Period is a method used to evaluate the time it takes for an investment… #
Payback Period is a method used to evaluate the time it takes for an investment to generate a return, it is used to determine the feasibility of an investment or project, related terms include financial modeling, investment analysis, and decision-making, for example, payback period can be used to evaluate the feasibility of a new project or investment.
Portfolio Management is the process of managing and optimizing a company's inves… #
Portfolio Management is the process of managing and optimizing a company's investments, it is used to maximize returns and minimize risk, related terms include investment analysis, financial modeling, and risk management, for instance, portfolio management can be used to develop a company's investment strategy and allocate resources.
Return on Investment is a measure of the return generated by an investment, it i… #
Return on Investment is a measure of the return generated by an investment, it is used to evaluate the feasibility of an investment or project, related terms include financial modeling, investment analysis, and decision-making, for example, return on investment can be used to evaluate the feasibility of a new project or investment.
Risk Management is the process of identifying, assessing, and mitigating risks,… #
Risk Management is the process of identifying, assessing, and mitigating risks, it is used to manage and minimize risk, related terms include internal control, financial reporting, and financial management, for instance, risk management can be used to identify and mitigate risks that could impact a company's financial performance.
Sensitivity Analysis is a method used to evaluate the impact of changes in assum… #
Sensitivity Analysis is a method used to evaluate the impact of changes in assumptions on a financial model, it is used to test the robustness of a financial model and identify areas for improvement, related terms include financial modeling, investment analysis, and decision-making, for example, sensitivity analysis can be used to evaluate the feasibility of a new project or investment.
Stakeholder Analysis is the process of identifying and evaluating the needs and… #
Stakeholder Analysis is the process of identifying and evaluating the needs and expectations of a company's stakeholders, it is used to inform strategic decisions and drive business growth, related terms include market analysis, competitive analysis, and financial analysis, for instance, stakeholder analysis can be used to identify and evaluate the needs and expectations of a company's stakeholders.
Time Value of Money is a concept that recognizes that a dollar today is worth mo… #
Time Value of Money is a concept that recognizes that a dollar today is worth more than a dollar in the future, it is used to evaluate the present value of future cash flows, related terms include financial modeling, investment analysis, and decision-making, for example, time value of money can be used to evaluate the feasibility of a new project or investment.
Variable Cost is a cost that varies with the level of production or sales, it is… #
Variable Cost is a cost that varies with the level of production or sales, it is used to evaluate a company's cost structure and identify areas for improvement, related terms include fixed cost, cost accounting, and financial analysis, for instance, variable cost can be used to evaluate a company's cost structure and identify areas for improvement.
Working Capital is a measure of a company's ability to meet its short #
term obligations, it is used to evaluate a company's financial health and solvency, related terms include cash flow, liquidity, and financial ratios, for example, working capital can be used to evaluate a company's ability to meet its short-term obligations.
XBRL is an acronym for eXtensible Business Reporting Language, it is a language… #
XBRL is an acronym for eXtensible Business Reporting Language, it is a language used to tag and format financial data, related terms include financial reporting, financial analysis, and financial management, for instance, XBRL can be used to improve the efficiency and effectiveness of financial reporting.