Category: Glossary

  What Are Assets and Liabilities? Assets are everything a business owns or controls that has value. Liabilities are everything a business owes to others. It’s like comparing your belongings (assets) to your debts (liabilities) to understand your financial position. What’s Included in Assets and Liabilities? Assets Current Assets: Cash Inventory Accounts receivable Short-term investments…

What Is Equity? Equity represents the value that would be returned to owners after selling all assets and paying off all debts. It reflects your ownership stake in a business, whether you’re a sole proprietor, shareholder, or investor. What’s Included in Equity? Equity typically includes: Owner’s Investments: Initial capital Additional investments Stock purchases Retained earnings…

What Is Liquidity? Liquidity represents how easily assets can be converted into cash without significantly losing value. It’s like having different types of money: cash in hand, funds in a checking account, or money tied up in long-term deposits. What’s Included in Liquidity? Liquidity typically includes assets grouped by their ease of conversion into cash:…

What Is Cumulative Gain (Loss)? Cumulative Gain (Loss) represents your total profit or loss picture over time. It’s like keeping a running score of your financial performance, adding each new result to the previous total to see your overall progress. How to Track Cumulative Gain (Loss) Tracking cumulative gain (loss) involves these simple steps: Start…

What is Fundraising? Fundraising is the process of collecting money to finance your business initiatives. It’s how companies get the resources they need to grow, develop products, or expand into new markets. Types of Fundraising Equity Fundraising: Selling shares of your company Debt Fundraising: Taking loans or issuing bonds Grant Fundraising: Getting money that doesn’t…

What is Operating Cash Flow? Operating Cash Flow shows how much cash a business generates from its regular business activities. Components of Operating Cash Flow Let’s break down what makes up Operating Cash Flow: Revenue: Money coming in from sales Operating Expenses: Regular costs of running the business Working Capital Changes: Changes in inventory, payables,…

What is Paid Media? Paid media is any type of marketing that you pay for directly. Think of it as renting space or attention to promote your product or service. It’s like buying a billboard, but in today’s world, it comes in many more forms. Types of Paid Media Display Ads: Visual advertisements on websites…

What is Influencer Marketing? Influencer marketing is when brands collaborate with social media personalities (influencers) to promote products or services. Think of influencers as modern-day word-of-mouth advertisers, sharing brand messages with their engaged followers. Who is an Influencer? An influencer is someone with the ability to affect other people’s purchase decisions due to their: Knowledge…

What is Sponsored Content? Sponsored content is a form of marketing where companies pay to place their content on media platforms. It blends seamlessly with the platform’s regular content and clearly shows “sponsored” or “paid.” Main Elements of Sponsored Content Content: Articles, videos, or posts that provide value to the audience. Placement: Where the content…

What are Display Ads? Display ads are visual advertisements shown on websites, apps, and social media platforms. They combine images, text, and sometimes animation to catch users’ attention and drive action. Think of them as the digital evolution of traditional print ads! Common types of display ads include: Banner ads Image ads Rich media ads…

What is a Transaction Fee? A transaction fee is a charge applied when processing a financial transaction. Think of it as the “service charge” for moving money from one place to another, whether you’re buying a coffee or transferring funds internationally. Common types of transaction fees include: Credit card processing fees Bank transfer fees Payment…

What is Bounce Rate? Bounce rate has two important meanings, depending on whether we’re talking about email marketing or website analytics: Email Bounce Rate The percentage of emails that couldn’t be delivered to their intended recipients. Email Bounce Rate = (Number of Bounced Emails / Number of Sent Emails) x 100 Website Bounce Rate The…