Numbers dressed up in fancy suits pretending to be words.
The irrational commitment to failing projects because you've already wasted so much time and money that stopping now would mean admitting it was all pointless. It's throwing good money after bad while calling it 'persistence.'
The original purchase price of an asset used to calculate capital gains taxes, proving that the IRS wants documentation of every financial decision you've ever made. Lose track of it and prepare for tax-time panic.
The total return anticipated on a bond if held until it matures, accounting for current price, par value, coupon interest, and time to maturity. It's what you'll earn assuming the issuer doesn't default, which is a bigger assumption than bond investors like to admit.
A magical loophole in the tax code that lets you keep slightly more of your own money, usually granted for dependents, disabilities, or other life circumstances the government deems worthy of pity. It's the carrot in a system that's mostly stick. Your accountant mentions these in hushed, reverent tones.
In finance, it's the magical number you get when dividing a company's stock price by its earnings—the higher the multiple, the more investors believe in fairy tales about future growth. Also known as the P/E ratio, it tells you how many years of current profits you're paying for today. Basically, it's the market's way of saying 'trust me bro' with numbers.
The annual fee expressed as a percentage that mutual funds and ETFs charge for the privilege of managing your money. It seems small until you realize how much that 1% compounds against you over decades.
Banking euphemism for a loan that's gone bad and isn't generating income anymore, like a car that won't start but you still owe payments on. It's the financial equivalent of politely calling a disaster a "challenge."
Short for either 'repurchase agreement' (a fancy overnight loan in finance) or 'repossession' (what happens to your car when payments stop), proving that context is everything. In finance, it's a legitimate short-term borrowing tool where securities serve as collateral; in collections, it's the nightmare scenario involving a tow truck at 3 AM. Tech folks have also hijacked the term for 'repository,' because apparently three definitions weren't confusing enough.
The accounting sin of assigning too low a value to an asset, which is either conservative prudence or creative bookkeeping depending on who's doing it and why. Companies engage in undervaluing to lower tax bills or appear more modest, while investors do it to snag bargains. It's the opposite of the more common corporate tendency to overvalue everything and pretend problems don't exist.
The accounting equivalent of admitting your asset isn't worth what you paid for it—a painful write-down that makes both your balance sheet and your ego take a hit. When goodwill gets impaired, it means that acquisition you overpaid for isn't looking so strategic anymore. It's basically the corporate version of accepting that your 'investment' car is now worth half what you paid, except with more regulatory requirements and angry shareholders.
An insurance contract against a borrower defaulting on debt, except it's called a 'swap' instead of insurance to avoid pesky insurance regulations. The financial instrument that nearly destroyed the global economy in 2008.
A measure of how quickly a company converts various assets (inventory, receivables, etc.) into sales or cash. High turnover is generally good, unless you're turning over employees, which is just expensive.
An asset's value on the balance sheet after accounting for depreciation and amortization—basically what the accountants say it's worth, which often bears no resemblance to what someone would actually pay for it.
Money a company owes to suppliers and vendors for goods or services received but not yet paid for. The grown-up version of 'I'll pay you back later,' except with purchase orders and payment terms.
The percentage of revenue remaining after subtracting cost of goods sold, revealing how much you make before paying for all the other stuff that keeps businesses running. High margins are good; low margins mean you're working hard to stay broke.
The average number of days it takes to sell through inventory, calculated as (inventory / cost of goods sold) × 365. A metric that reveals whether you're efficiently managed or operating a museum of unsold products.
Costs incurred but not yet paid, recorded as liabilities on the balance sheet because accrual accounting insists on acknowledging unpleasant realities before the bills arrive. Financial statements' way of saying 'don't get too excited, you owe money.'
A measure of whether a company can meet its long-term obligations, typically comparing assets to liabilities or earnings to debt service. It answers the question: 'Will this company exist next year?'
A write-down acknowledging that the premium paid in an acquisition was optimistic, to put it kindly. It's the accounting equivalent of admitting you dramatically overpaid for something because you got caught up in the moment.
A leverage metric comparing total liabilities to shareholder equity, revealing whether a company is conservatively financed or one recession away from bankruptcy. Financial analysts' favorite way to judge how recklessly a company borrows.
Payments made in advance for goods or services to be received in future periods, recorded as assets until consumed. It's money you've spent that accountants insist you haven't actually spent yet.
Abbreviated slang for cryptocurrency, used by people too busy day-trading Dogecoin to type out the full word. It's the linguistic equivalent of buying low and selling lower while pretending you understand blockchain technology.
A pre-approved sum of money allocated for specific purposes, whether it's reimbursing employees for business expenses or giving your kid enough cash to learn about financial responsibility (and candy budgets). In corporate speak, it's the amount you're permitted to spend before someone starts asking uncomfortable questions. It's not free money—it's controlled spending with receipts attached.
The classification of income, property, or transactions that the government has graciously decided you should share with them. Essentially, anything that brings you joy probably falls into this category. If you earned it, bought it, or even thought about profiting from it, the taxman cometh.