Dissertations are academic papers that delve into specific finance topics. It requires in-depth research, analysis and critical thinking. It is essential to plan your finance dissertation based on its scope. Moreover, knowing how to pick the correct topic is essential. Understand what professors expect you to deliver a successful dissertation. The topics in this subject range from reporting and analysis to international and corporate finance. But first, you need to learn the basics. Everybody knows that writing finance dissertation is overwhelming. Especially if you are unfamiliar with the terms discussed in this article.

This article covers essential terms that can help in your next finance dissertation. It will help you understand the meaning and scope better and write them effectively. Including these in your document will ensure academic standards and make you stand out.

Basic Finance Terms You Should Know for Writing Dissertation

Read the section below to learn 20 fundamental terms that can help elevate a finance dissertation. In addition, it increases your knowledge and ability to convey your ideas with clarity. Make sure to bookmark this page, as these might come in handy while writing your documents.  

Amortization

It is the method of paying debts or loans in installment over a period of time. It includes spreading the cost of an intangible asset for tax and book keeping purposes.

Assets

It is a type of item or resource owned by a business entity that can be used for future benefits. It can be both tangible and intangible and shows ownership to a business. For example, factory machinery, office equipment, goodwill. There are two types of assets.

Current Assets: They can be converted to cash within a year.

Fixed Assets: You cannot encash them as quickly as current assets. However, they are still beneficial for the company as they can earn you profits.

Balance Sheet

It is an essential financial statement that communicates an organizations worth. It evaluates a company’s assets and liabilities based on their costing. The difference between them is what you call “net worth”.

Capital Gain

The increase in value of an asset or investment above the price paid for it means Capital Gain. In other words, it is the increase in an investment’s market value.

Depreciation

It refers to the decrease in the market value of an asset or investment. A person can use it to determine how much of an asset a business has used based on its present market value.

Cash Flow

It refers to the net cash balance moving out and flowing into a business. You can calculate this balance over a period of time or at a specific point in time. It is studied via a document called a cash flow statement.

Compound Interest

In simpler words, it means “interest on interest.” In this process, you add the interest to the principal amount, thus increasing the principal size. Later, this results in greater interest the next time.

EBITDA

It stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It measures a company’s ability to generate profits. Investors use this to determine whether a company is growing or not.  

Equity

It is the amount of money that a company returns to its shareholders after liquidation. Equity is the remaining amount that one gets after liquidating all the assets and paying all the debts.

Liquidity

It describes how quickly a person can convert a company’s assets into cash. Cash is the most liquid asset, and real estate and land are the least liquid.

Return on Investment (ROI)

It is the calculation of a venture’s expected return in comparison to its investment. It is said to be the ratio calculated between the investment and net worth.

Valuation

It is the process of determining a company’s current worth based on its assets and liabilities. This is necessary if you are seeking outside investment or are planning to sell the company.

Insolvent

A company is insolvent if it can not pay off its debts. In that case, a company has declared bankruptcy and either sells its assets or the company itself is sold.

Record Keeping

It is the process of recording information about business transactions. It is a requirement in the tax laws. You may read about the same in your law assignments. In case you need help with the same, look for law dissertation help online.

Profit Margin

Margin is the difference between the selling price and the cost price of a good or service. It is generally shown as a gross margin percentage, which is the profit earned per unit sold.

Break Even Point

Every business faces certain expenses during the production of a good or service. Also, the profit earned by selling that good or service need not go into shareholders’ pockets. When the profit made becomes equal to the expenses, it means a break-even point.

Bill of Sale

It is also known as a receipt of goods/services sold. It’s a legal document depicting the sale and the amount paid or due payable. It also provides details of the time and place of sale.

Bootstrapping

When an entrepreneur uses personal finances to give a kickstart to their business. This method does not require outside investments.

Drip Pricing

Drip pricing is the process of adding extra charges over the base price advertised during the sale. Many online businesses perform drip pricing. Although it is legal, it is believed to be unethical.  

Initial Public Offering (IPO)

When a company goes public with its shares for the first time, i.e., it lists its shares on the stock market initially. This way, the stocks are available to the general public for purchasing equity. It is done to raise investments.

Conclusion

These terms are beneficial when writing finance dissertation or any related document. You can write these down or bookmark this page to refer to these topics in the future. Though these terms can sound complex, they are very easy to understand. If any particular terms interest you, try researching that topic more. It will help enhance your financial knowledge further. Using these in finance-related documents can give you the edge of professionalism.
Read More-HOW TO CHOOSE THE BEST TOPIC FOR YOUR ASSIGNMENT? KNOW HERE